How to Create a Post-Divorce Budget That Actually Works

When life changes after divorce, so does your money. Your income, expenses, and financial priorities are likely very different than before. Building a post-divorce budget is one of the most powerful steps you can take to create stability and confidence.

1. Understand Your New Income

Your household income may have changed dramatically.

Action step: Determine your true monthly income (salary, alimony, child support, side income). Use your after-tax (take-home) amount, not your gross salary.

2. List Essential Fixed Expenses

These are the bills that don’t change much each month:

• Rent/mortgage
  
  

• Utilities
  
  

• Car payment & insurance
  
  

• Health insurance
  
  

Debt minimum payments
Action step: List these in one place—this is your non-negotiable baseline.

3. Account for Variable Spending

Groceries, dining, entertainment, clothes—these change monthly but can add up.

Action step: Review 2–3 months of bank statements to find patterns and set realistic amounts.

4. Plan for Savings and Goals

Even if you can only save $50–$100/month, start building your future.

• Emergency fund (at least $500–$1,000 to start)
  
  

• Retirement accounts
  
  

Long-term goals (education, home purchase)

5. Choose a Budgeting Method That Fits

Don’t overcomplicate it. Choose one system you can actually stick to:

• Apps like YNAB or EveryDollar
  
  

• A simple Excel/Google Sheets template
  
  

Envelopes for cash spending

6. Review Monthly & Adjust

Your life is in transition—budgets will evolve. Spend 30 minutes each month reviewing your income and spending and adjusting as needed.

Final Thoughts

Your post-divorce budget isn’t about restriction—it’s about freedom and clarity. When you know exactly where your money goes, you can make informed decisions and focus on building your new life.

Need help building your personalized post-divorce budget?

Book a Free Consultation.