Divorce costs money. Not only will you have to pay court costs and lawyers' fees, but you and your former spouse now will be supporting two households instead of one. This usually means that one or both of you will experience a diminished standard of living, at least initially. One new factor in your financial picture may be alimony. Alimony is a court-ordered payment to an ex-spouse. In the past, husbands usually paid alimony to their wives. Today, however, wives occasionally pay alimony to their husbands. Alimony can be paid in a lump sum or in installments. The amount received in installment payments usually can be reevaluated if circumstances change for either party. You can ask that your initial agreement include a provision for cost-of-living adjustments to your alimony to counter the effects of inflation. Most alimony settlements are limited to a certain time period (for example, five years) or end upon the remarriage of the former spouse.

Unlike alimony, child support is legally required for underage children. The primary wage earner usually assumes the major financial responsibility, with the amount of child support based upon the needs of the children and the parent's ability to pay. Child support may also include providing health and dental insurance for the children. If a parent fails to pay court-ordered child support, money can be withheld from his or her wages. Tax refunds also can be intercepted to pay child support. In some states, failure to pay child support can mean jail time.