Liquidity / Cash Flow
Once you develop your post-divorce budget, compare your expected income to your expenses. Remember to include child support payments and the expenses related to your children. Next, look at the future. Will your situation stay the same or will it change? Some items to consider:
- Will your income go up in a couple of years after you finish school?
- Will your expenses go down when your child starts going to school for a full day?
- What are other factors unique to you and your situation?
Implications for your divorce settlement – Do you need money now, but in a few years your situation changes? If so, you may be able to take less spousal support now and take a larger share of your assets in exchange.
Do you think your spouse will have more cash available in a few years, but none today? Maybe you can negotiate an increasing level of support to make the agreement more palatable.
Do you have an income that is highly variable from year to year like a sales position or own your own business? If so, you can ask to provide a minimal amount of support every year, but give more if you have a good year.
Jeff Kostis, President
Certified and experienced, Jeff shares his insight to help educate each client.
- CERTIFIED DIVORCE FINANCIAL ANALYST™, 2011
- CERTIFIED FINANCIAL PLANNER™, 2008
- CPA/PFS, 2008; CPA, 1995
- Master’s degree in Accounting, University of Texas, 1993
- Graduate of Bradley University, 1991