Building a Post-Divorce Budget
The transition from a dual-income to single-income household requires a fundamental budget restructure. BLS data shows single-person households spend about 78% of what dual-income households spend, meaning per-person costs increase even as total spending decreases. Housing typically consumes 30-35% of a single-income budget versus 25-28% for dual-income households.
The 28/36 rule is a useful benchmark: housing costs should stay below 28% of gross income, and total debt payments below 36%. If your post-divorce housing exceeds these thresholds, consider downsizing, finding a roommate, or relocating to a lower-cost area. Insurance is another major adjustment — COBRA averages $650/month for individuals or $1,850/month for families.