Tuesday, September 11, 2018

How To Create A Divorce Expense Worksheet

By Diane Sanders


Splitting assets is a common practice associated with divorce procedures. While separation is the best solutions to issues affecting marriage, individuals are faced with financial problems during and after divorce. Legal experts need a well structured financial report to determine who needs financial assistance and how to separate assets. Below is a list of things every individual needs to know about creating divorce expense worksheet.

Understanding the entire process of creating budgets during separation is the first step to making wise decisions. Courts utilize worksheets to decide the amount of money a spouse should give as child support and alimony. That is why individuals prepare expenditure reports to help courts make a wise ruling. Detailed financial reports are written in spreadsheets which separate income and expenditure in columns. Both spouses work on personal financial reports and present them in court as required by law.

Spreadsheets provide correct calculations because they are designed with formulas and each entry is translated in numeric form. That is why most individuals choose computer applications to prepare separation expenditure worksheets. There is no specified time as to when one is expected to complete a worksheet. Courts expect submission of worksheets anytime during hearings.

Preparing a financial report is not easy especially for anyone going through a separation. However, one must overcome emotional ties when creating worksheets. Pay attention to important matters like your source of income. The court requires details on how you earn finances. It is difficult to keep track of your income sources if you have been employed many times. Use your income tax report to identify income sources you have relied on for at least three years.

Write down individual tax returns on the spreadsheet. It is natural for spouses to file tax returns jointly. Keep in mind, tax returns will be filed separately after marriage annulment. If you are unemployed, avoid listing sources of income until you can confirm steady flow of income. If you are already separated and receive financial support in form of alimony or child support from your spouse, make sure to list the amount.

Your expenditure history is an important factor to consider before submitting a financial report to the court. Write down the amount of cash you spend on various things such as insurance, utility bills, and mortgage. Other expenses such as gym membership, entertainment or vacations should be listed. Remember, you can choose to forego extra expenses for some time to reduce your expenditure.

Add both basic expenditure and luxury expenses to get the actual figure you spend monthly. The next step is to calculate each group of expenditure and subtract the total amounts. You can decide to save the difference by cutting off luxury expenses or continue paying for unnecessary services and products.

Stick to the budget to increase the chances of becoming financially stable. Although it is not easy to stick to a strict budget, the effort is worthwhile. Seek professional assistance if you feel incapable of handling an expense worksheet. Hiring a good lawyer is the best option to ensure your separation case is well handled according to law requirements.




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