Cash Flow - Making Two Households Work Financially

You are trying to figure out how to take your one household from during the marriage and split it into two financially independent households.

Goals of cash flow analysis:

• Can you each support yourselves moving forward or do one of you need support from the other to make your cash flow work?
• Evaluating financial stability and the sustainability of a household moving forward post-divorce and determining if support is needed.

Cash flow is different than property division

• Property division is snapshot in time the divides your assets and liabilities based on work done during the marriage (backward-looking)
• Cash flow – how income and expenses will “flow” (or move in and out) of your household (forward-focusing)

Cash Flow Analysis Overview & Steps

Build a budget --> Review all income --> Determine whether support is needed --> If so, map out support numbers --> Finally, consider logistics of cash flow

1. Build a through, future-focused budget
2. Review all income
3. Determine whether support is needed (Do you each make enough income to meet your reasonable budget?)

If support is needed, there are three types of payments to explore

• Spousal Support/Spousal Maintenance/Alimony
• Child Support (if you have kids)
• and/or Direct Payment of Expenses

Determine logistics on the support agreements

In the following modules and supporting materials, you will find the tools and understanding necessary to make well-informed decisions setting the stage for a stable and sustainable financial future.

Assess your post divorce financial goals with this quiz.