The budget section is where Form E moves from disclosure to day-to-day reality. It shows what you and any children need each month, and it can shape maintenance, housing and settlement discussions.
This guide explains the budget and income needs section of Form E in England and Wales, last checked against HMCTS guidance on 13 May 2026. It is general information, not legal advice.
Quick answer
Use realistic monthly figures, not artificially low figures. Convert annual costs into monthly amounts, separate children's costs where helpful, and explain future changes such as new housing, childcare, school costs or a change in income.
What the budget section asks for
The budget section asks what you need to live on. The court is not looking for a perfect household spreadsheet, but it does need a believable picture. The figures should be grounded in real spending, bills and expected changes.
| Budget area | Evidence | Practical approach |
|---|
| Housing | Rent, mortgage, council tax, service charge, insurance. | Use current costs or realistic future housing estimates. |
| Utilities and household | Bills, bank statements, supplier records. | Use ordinary monthly averages. |
| Food and groceries | Bank statements, supermarket spend, household pattern. | Be realistic, especially with children. |
| Children | Childcare, school, clubs, clothing, travel. | Separate child-specific costs where useful. |
| Annual costs | Insurance, car servicing, holidays, subscriptions. | Divide annual figures by 12. |
Do not understate your budget to look reasonable
A budget that is too low can be as unhelpful as one that is inflated. If it does not reflect real life, it will not help the court or negotiations. The goal is calm realism.
You can also use the divorce budget calculator to organise categories before finalising the section.
The "Invisible" Costs Everyone Forgets
Most people approach Section 3.1 by thinking: "Right, I need food, electricity, and petrol. Done."
Then, six months after the divorce, they're blindsided by costs they completely forgot to budget for:
- Dentist and optician – You need a check-up once a year. That's £60–£100 you didn't account for.
- Car repairs and MOT – Your exhaust doesn't break on a schedule, but it will break.
- Home maintenance – Boilers fail. Gutters leak. Landlords charge for repairs.
- Gifts and Christmas – You still have to buy birthday presents for your kids, your mum, your best mate.
- Clothing and shoes – You can't wear the same boots for five years.
- Prescriptions and toiletries – Paracetamol, shampoo, toothpaste, tampons—it all adds up.
Here's what most people don't realise: the Family Court is not asking for a "survival budget." It's asking for your reasonable needs based on the standard of living you enjoyed during the marriage.
If you've always had Sky TV and a family gym membership, the court won't punish you for including those. But if you lowball everything to look frugal—and then your ex's solicitor cross-references your bank statements—you'll lose credibility fast.
The trick is to be realistic and defensible. Not stingy. Not extravagant. Just honest.
But how do you know what "realistic" even looks like?
The Data: What Do UK Households Actually Spend?
You don't need to guess. The Office for National Statistics (ONS) tracks average household spending across the UK, and the figures are publicly available.
Here's a breakdown of average monthly costs for a single-person household in 2024:
| Category |
Average Monthly Cost |
| Groceries |
£250–£300 |
| Gas & Electricity |
£180 |
| Water & Sewerage |
£35 |
| Mobile & Broadband |
£45 |
| Home Insurance |
£25 |
| Council Tax (Band D) |
£170 |
| TV Licence |
£13 |
| Petrol/Car Costs |
£100–£150 |
| Clothing & Personal Care |
£40–£60 |
Important notes:
- These are national averages. If you live in London, your costs will be higher. If you live in Yorkshire, they'll likely be lower.
- These figures assume you're renting or have a mortgage. If you own your home outright, remove the housing costs but keep utilities.
- If you have children living with you, multiply food and clothing costs accordingly.
These averages give you a defensible baseline. You're not plucking numbers out of thin air—you're using government data. If your ex's solicitor questions your budget, you can say: "These are ONS averages for a single-person household in the UK."
That's a much stronger position than: "I dunno, I reckon I'll spend about £200 on food?"
But here's the problem: most people don't know this data exists. They spend hours Googling "how much does the average person spend on electricity" and "what's a normal monthly food bill" and stitching together a budget from random forum posts.
There's a better way.
How to handle future changes
If your future household will be different from your current household, explain that. Common examples include moving from the family home, renting separately, childcare changes, school costs, mortgage capacity, transport changes or a child moving between households.
Common mistakes
- Forgetting annual costs. Insurance, car costs and school costs often get missed.
- Using neat round numbers everywhere. It can look guessed.
- Mixing adult and child costs where separation would help.
- Ignoring future housing reality. Needs often change after separation.
When to get help
Get advice if housing needs are disputed, income is not enough to meet both households, children have special needs, school fees are contested, or maintenance is likely to be a central issue.
Frequently asked questions
Should I use exact bills or estimates?
Use exact bills where you have them. Use reasonable estimates where the future cost is not yet known, and explain the basis.
How do I convert annual costs into monthly figures?
Divide the annual cost by 12 and keep the annual bill or estimate as evidence.
Is it bad if my budget is higher after separation?
Not automatically. Running two households is often more expensive than one. Explain the reason rather than hiding the change.
Once your monthly and annual outgoings are clear, check which bills and income proofs actually need attaching using the Form E documents checklist, or test figures first in our free Section 3.1 divorce budget calculator.
Official sources checked
Divvio is not a law firm and this guide is not legal advice.