What Is Considered an Entertainment Expense During a Divorce?

What Is Considered an Entertainment Expense During a Divorce? A Guide to Understanding Divorce Finances

There’s no denying that divorce can be a very sensitive and difficult period, factoring the financial obligations that each party will bear upon diversity of citizenship. Such activities call for shared responsibility and in more ways than one defining of sunk costs with respect of activities which one can call entertainment expenses in divorce. This guide shall lay what entertaiment expenses are, how they are dealt with in the eye of the law in the course of divorce and what you should do in order to efficiently deal with such financial aspects.

What Are Entertainment Expenses?

Entertainment expenses are the costs associated with activities that are for enjoyment, rest, or leisure. Therefore, it may include, going out to watch a movie, going out for dinner, going out for a concert, taking a family trip and even paying for a streaming service. While these activities are normal in everyday life, they may cause issues during a divorce when they are forced to assess boundaries and share financial records.

Expenditure on entertainment can include.

Eating out: Food purchased outside the home at restaurants or cafes including takeout and delivery.
Holidays: All members of the family going on a trip or a short holiday break.
Leisure Events: Any sports event, concert, theater performance, or any other form of live performance.
TV Shows and Music: Services such as Netflix, Hulu, or Spotify.
Social facilities: Such as country clubs, gyms, or social activity centers.

While these costs may be borne jointly during the course of the relationship, upon separation the burning question becomes that of how such costs will be faced in the future.

Why Would Entertainment Expenses Matter for Divorce Maintenance?

There will be an evaluation of all shared expenses and assets between the married couples during the divorce process for fairness in distribution. Moreover, entertainment expenses play a crucial role in marital economics as they tend to escalate quickly especially where one spouse is a spendthrift on leisure activities. Therefore, it is important to get a grip on these expenses so as not to have any disagreements regarding financial equity and accountability.

Entertainment expenses may not be so relevant except for a few instances;

While paying off a shared loan: If one partner has funded more costs that relate to entertainment, that factor might be necessary that is taken into account when sharing concealed owing or assets.
Where spousal support (alimony) is involved: Moreover, entertainment costs may at times be included in the equation that determines the standard of living during the union, which courts may use while fixing alimony.
When rabbling about child support: Entertainment especially hinging on the kids such like holidays and other fun activities may be raised during negotiations for child support.

How Courts View Entertainment Expenses in a Divorce

In most cases, the courts will regard people’s entertainment expenses as non-essentials and thus do not form part of the basic living expenses budgeted, such as the expense for shelter, food, and health care. But this doesn’t mean that they will be ignored in the context of divorce. In some instances, the court may look at the way the couple lived and the quality of life the couple enjoyed prior to the dissolution of marriage.
For instance, if after their marriage, a couple used to travel a lot or pursue expensive hobbies, one of the spouses may claim that it is important to keep supporting people in sustaining that kind of lifestyle, particularly by making children of the couple as the reason. However, the court will also consider this alongside the practical realities of finance, which include how much each spouse earns and how much they are likely to need in the future.

Entertainment Expenses Payment Division with Alimony

In considering the issue of distribution of entertainment expenses in a divorce, there are different strategies that can be opted for based on the financial status and legal framework of the couple.

Mutual Agreement
If both spouses reach an understanding regarding the manner to share the entertainment costs, this can be incorporated in the divorce agreement. Some couples may want to accede to dividing up and paying any eventual entertainment debts accruing from the two while others may agree to a cut off, each taking care of their own costs the rest of the way.
Division Through Court Ruling
In case of disagreement between the couple, the court will step in and make a decision on how entertainment fees will be dealt with. Courts usually impose their rulings after considering what is equitable and taking into account issues such as incomes, what each party contributed to the marriage and the general financial status prevailing.

By way of illustration, in a situation where one of the spouses earns a significantly higher income than the other, the higher earning spouse might be deemed responsible for a portion of the entertainment expenses, particularly where such expenses were incurred in preserving the status quo of the family.

Revisions to Alimony or Child Care Expenses
Treats or Entertainment costs will sometimes also be considered in pension or child care awarding for a party. If the parents used to go out as a family on many occasions, then part of the child support can be meant to carry on similar outings for the children. In the same way, alimony support can have a bit set aside specifically for entertainment purposes, if such was the regular observance during their union.

Frequently Asked Questions Of Entertainment Costs During Divorce Settlements

1. Do you Think vacations could be considered entertainment expenses?
Vacations are generally classified as entertainment expenses. How such expenses are shared or incorporated in the child support or alimony of a coupled i.e. if agreed upon during the divorce disputes depends on the lifestyle choices of the couple.

2. What Will happen to Netflix, Gym, etc. memberships?
These memberships can the placed in many ways. For example one of the spouses can decide to continue maintaining it, or it may be equally shared in two. In such cases where the subscription is in family use account, which has lockout controls, ways will have to be created in how everyone will access it in future.

3. Are these entertainment expenses covered within the support?
It may be necessary to include support for things like family outings when determining child support obligations. This is to ensure the children will still have similar associated activities like they did before the divorce.

Coping Up with Entertainment Expenses After Separation

Post divorce settlement, both the parties will be responsible for their respective entertainment costs. This may include putting back some leisure expenses or formulating a plan on how much will be spent on leisure activities as one tries to fit into their present financial standing.

In the presence of children, the parents may find it necessary to share the responsibility of availing such entertainment as vacations or outings to events for the children. This may be coordinated without any mischief caused, providing the coordination is done effectively.

Here are a few tips for managing entertainment expenses after a divorce:

Create a New Budget
Learn to control your expenditure in accordance with the new financial condition you are going to live in. Expend essential items first and only then put some money for entertainment.
Keep Communication Open
If there are shared kids, make sure to discuss with the children’s other parent any costs incurred for their entertainment. Make sure both parents are on the same page about such expenses and how they will be managed.
Limit Unnecessary Spending
It is suggested entertainment expenses be lowered even as the other party seeks to adjust to the new financial reality. Feel free to choose less expensive forms of leisure until you are back to your normal self economically.