Developing A Budget to Determine Housing Expenses in a Divorce

Thousand Oaks Divorce LawyerOne important aspect in a divorce is allowing for housing expenses for both parties after the divorce. A Thousand Oaks divorce lawyer would show you what to consider in developing your proposed budget.

Anticipating Costs of Both Party’s Living Situation

Both parties will be making an estimate of their individual living expenses after the divorce. A major area is housing, and a Thousand Oaks divorce attorney can help you evaluate housing and utility costs for this part of the budget. The budget is a key component for valuing the marital estate, which a Thousand Oaks divorce lawyer will tell you is determined by including what a couple owns minus what they owe.

Residential Occupancy Costs

A mortgage payment or rent is what determines residential occupancy costs. With a situation where a couple owns a home and still has mortgage payments, a Thousand Oaks divorce lawyer suggests that only one party include the mortgage in their budget and not split that expense. Having one party responsible for the mortgage helps avoid confusion with the lender and places accountability on one person if there is a problem with paying the mortgage. Therefore, the other party would have the housing expense of rent or, if able, purchase of a new residence.

Utility Costs

Another important cost in estimating housing expenses will be utility costs. For the person staying in the family residence, there is a utility expense history already established and the figures would remain the same for budget-planning purposes. For the person moving to a new residence, a Thousand Oaks divorce attorney will assist you and provide resources for estimating your potential utility costs for your budget. You can usually obtain general average costs from the utility companies to help with making your estimations.

A Thousand Oaks divorce lawyer will attest to the fact that changing to a new residence and possible lifestyle changes creates inherent uncertainties in living expense costs after a divorce. You would be expected to develop an estimate of these costs that are as reasonable as possible.

There are lots of factors to consider in a divorce and, as you can see, having experienced legal advice is critical to making sure both parties are treated fairly. For a consultation with a Thousand Oaks divorce lawyer, contact the office of Gary Mitchell at 888-452-1846 today.

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