According to a Lowell family lawyer, it is easy to overlook miscellaneous expenses when preparing a budget for the divorce process. These omissions could create problems down the road when the divorce agreement has been finalized and these expenditures have not been considered. Following are two examples of frequently overlooked expenses.
Donations or Contributions
Contributions made to religious, social or charitable organizations generally come out of discretionary funds. A Lowell family lawyer may suggest suspending any charitable giving while the divorce is pending. Once both parties have the chance to adjust to their new financial status, donations and charitable giving may be resumed.
In some cases, charitable contributions are governed by a legal contract. In that instance, one or both individuals are bound by a legal agreement that obligates the person or persons to provide funding to an organization at a particular level or at regular intervals. This means that the organization might have the legal right to enforce payment. If the donations are contractual in nature, they may not be considered discretionary and should be listed as obligatory. Any obligatory expenses should be listed and itemized as part of the spouses’ budget. A Lowell family law attorney may review any contracts for charitable giving to determine whether they need to be included in the budget.
There are several occasions throughout the year for which gift giving is a social requirement such as birthdays, bar or bat Mitzvahs, weddings and baby showers. It is important to maintain social contact through the divorce process including gift giving.
Most people purchase gifts that are in keeping with their financial status. When individuals divorce, their financial status is likely to change. Individuals are encouraged to keep their new financial status in mind when making gift purchases. A Lowell family lawyer may recommend setting a financial limit for gift purchases.
A lawyer may be able to review a couple’s expenditures, including discretionary spending as part of the divorce-budgeting process. Contact the Law Office of Bruce A. Gage for a consultation at either 978-654-6005 or 877-829-0831.