Your Budget
Your Balance Sheet
A balance sheet is a financial statement that describes what you have and what you owe, also known as your “net worth”, at a certain point in time. It lists assets (what you own) on one side and liabilities (what you owe) on the other. The balance between what you own and what you owe is called equity, or net worth.
A balance sheet becomes important when you are dividing up family property. It will be helpful to have a complete list of the things that your family owns and a list of your family debts.
DIY
Prepare a Net Worth Statement
Preparing a Budget
A budget is important to do when you are talking about child support and spousal support. To provide financial stability for the children, you need to know the monthly expenses and how they are going to be paid.
An income statement or budget is a spending plan that helps put you in control of your money. A budget shows:
- How much money is coming in
- Where the money needs to go to meet your needs and wants
- When you will be able to reach your goals
If you have more money coming in, that is a profit. If your expenses are higher than your income, that is a loss. For a lot of people budgeting is pretty simple:
The money comes in > The money goes out.
It is important to consider all sources of income, including child support and spousal support. You should have an idea of the total amount of income coming into the household. In addition, it is important to know all of the expenses that need to be covered.
Preparing a budget takes a bit of work, but sticking to a budget takes really hard work. Following your spending plan takes determination and discipline.
DIY
Fill in the Budget Worksheet to help you manage your finances during your separation.
