It is easier financially to live as a  family than it is as separate households. There are duplicate costs and there are children one wishes to placate. There are also new costs such as daycare, & the lack of a handyman (if there ever was one!). The first year is the hardest because of the immediate turmoil and difficult adjustment.

Given all this, a budget is a central factor in future planning. Yet its role within the Court process is confusing. The Court requires almost immediately a net worth statement, which contains crucially one’s assets, & also a detailed account of one’s expenditure & income. Litigation clients  become distressed trying to fill these in. On the one hand the net worth statement is an essential piece of evidence which the court requires to be correct, with attorneys waiting in the wings to pounce with evidence of error. On the other the budget portion affects the law only indirectly when assessing support levels. There is an exact mathematical equation which the Court applies for temporary spousal support, but the formula is a gross simplification of the world.

Actual estimates of budgets have been attempted by the Economic Policy Institute (EPI). You can try the calculator here.  For example, it estmates that a family of four living in New York post Federal & State Taxes, excluding property taxes, would need $95,000 to live fairly. There is a fairly lengthy discussion of the methodology, but in short, its a useful estimate that one needs to tweak.

Where should its role be? In mediation where everything can be considered, its a helpful exercise to ensure the result isn’t unduly harsh on anyone and It should be seen as an useful tool for efficiency going forward. Moreover it challenges every parent’s worthy sentiment to pamper children during the difficult time, by showing that perhaps the two monthly sleep-away camp, the bi yearly pair of Uggs, and the replacement IPad.  are truly un-affordable, and that alternatives should be sought.