Empowering Families

Divorce is super complicated. In my last video, I promised to break down some of the complexities of divorce, and today, I’m going to address the cash flow elements. I’m Katherine Miller, founder of the Miller Law Group in the New York City area, and I’ve been a divorce attorney for over 30 years. I believe we can simplify these cash flow elements, making them more manageable than they might initially seem.

First of all, what are these cash flow elements? There are two main ones: child support and alimony (which we refer to as maintenance in New York). If you have children who are not yet emancipated—that means under the age of 21 in New York—then child support is an issue you need to address. The other element is maintenance, which is often dreaded but essential to consider as part of your cash flow plan.

Let’s think of it this way: whether you’re getting divorced or not, you need to consider your expenses. What does it cost to cover your mortgage or rent, food, vacations, private school, babysitting, medical expenses, and everything else involved in your life? Make a list and add it all up. It doesn’t have to be perfect, but it should be fairly accurate.

Next, you need to figure out how you’ve been paying those bills. Do you work? Does your spouse work? Are you using credit cards, investments, or savings to cover your expenses? Now here’s the trick: you need to create a future cash flow plan. What will your expenses be moving forward? How will you cover them? And will there be cash flow between you and your spouse in the form of child support or maintenance?

It’s important to understand that child support and maintenance both contribute to your overall cash flow. While they used to be seen as very different, today, when it comes to everyday expenses—like going to the supermarket, opening your wallet, and paying for milk—it doesn’t really matter whether the money is from your earnings, maintenance, or child support. What matters is that you have the cash flow to pay your bills.

So, while it might sound complicated, it really comes down to having a solid cash flow plan that’s put into an agreement and a judgment of divorce. This plan outlines how the bills will be paid going forward.

Got other questions about the divorce process? Please subscribe to my YouTube channel and my podcast, Divorce Dialogues. I think you’ll find some helpful answers there. Thanks for listening.