Creating a financial blueprint during the divorce process is crucial for understanding your financial standing and serves as a foundation for any discussions regarding settlements. It’s typically one of the first tasks your lawyer will ask you to complete. As daunting as it may seem, it’s essential to tackle this task promptly.

“Money, while it cannot buy happiness, is an important means to achieving higher living standards.” – Woody Allen

Starting Point

Embarking on budget planning can feel overwhelming. To assist you, we’ve put together a budget planner. It categorizes expenditures into fixed costs like housing and taxes, variable costs including groceries and commuting, and finally savings and investments for future planning.

Comprehensive Inclusion of Expenses

Ensure you account for all expenses, no matter how small, from routine haircuts to annual insurance fees. Consider asking a family member or a friend to review your draft to ensure nothing is missed.

Budget Planner

Bonuses & Benefits:
Investment Income:
Total Income

Fixed Expenses
Housing Costs
Council Tax:
Other Fixed Expenses
Taxes & NI:
Loan Payments:
Total Fixed Expenses

Variable Expenses
Food & Household:
Car Expenses:
Travel Costs:
TV License:
Clothing & Personal Care:
Total Variable Expenses

Savings & Investments
Pension Contributions:
Savings Plans:
Total Savings

Calculating Your Outgoings & Balance
Total outgoings = Fixed + Variable + Savings Expenses
Balance = Total Income – Total Outgoings

Financial Reality Check

If your calculations show a surplus that doesn’t match your actual financial experience, conduct a detailed audit of your daily spending for a month. This exercise can uncover where your money is truly going.

Becoming Financially Aware

Following the method used by financial expert Alvin Hall, tracking every penny spent can be enlightening and reveal unexpected areas of expenditure.

Assessing Your Financial Position

With your budget set, next is assessing your overall financial situation through a balance sheet, capturing a snapshot of your assets and liabilities at a given time. This includes everything from cash savings to pension assets and liabilities like credit card balances.


Cash & Equivalents: Bank accounts, ISAs, etc.
Invested Assets: Life insurance, stocks, shares.
Used Assets: Property, vehicles, personal belongings.
Pension Assets: Pension plans.
Other Assets: Trusts, etc.
Total Assets


Credit Cards, Loans, Mortgages, Overdrafts, etc.
Total Liabilities

Net Worth

Total Assets – Total Liabilities = Net Worth

Understanding your financial standing not only aids in negotiations but ensures you’re prepared for future financial planning post-divorce.