Creating a budget is a crucial part of the valuation of a marital estate and dissolving a marriage. Accordingly, both parties and their Los Angeles family law attorneys should develop one (or more) budgets. The budget should consist of historical, current and future costs.

Historical costs include those expenses that were incurred before the separation.  The costs in this period are then used to predict current and future costs.  For instance, assuming that the wife will continue to live in the family residence after the separation, the utility costs for her will probably be similar to those incurred prior to the husband leaving.  These costs can then be used to predict current costs that will be incurred during the divorce process and, if the wife decides to keep the home, future costs.

Alternatively, any costs that are incurred for one party, but not the other, will only be included in that party’s budget.  For example, the husband’s entertainment expenses for things such as golf memberships, bowling, etc., would not be included in the wife’s budget.  If you believe that you need help with formulating the specifics of your budget, a skilled Los Angeles family law lawyer can further assist you with the preparation.

More specifically, your lawyer can aid in the budget process by applying logic (as opposed to emotion), removing duplicative entries and clearly marking out the relevant time periods.  The goal when developing a budget is full disclosure from both parties because coherent economic decisions cannot be made without complete information.  If you need a Los Angeles family law lawyer, please call DA&D Law at (800) 257-6666 for a free consultation.