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Impact of divorce on student debt

A divorce is often one of the most difficult processes a person can go through. It can be emotionally, mentally and financially draining, and it can raise a lot of questions about the division of assets and liabilities. People who are going through a divorce in North Carolina might have questions about how property is likely to be divided. If one or both of the parties has student loans, the division of that liability can complicate the proceedings.

Generally speaking, if one of the spouses incurred student debt prior to the beginning of the marriage, the debt is the responsibility of that person alone and not of the other spouse. Cases may be more complicated where student debt came on during the marriage. It may then be considered marital debt and the family court will usually divide it between the parties based on the principle of equitable distribution.

Four considerations when telling your kids about your divorce

If you recently learned that divorce is in your future, you may wonder about how you should tell your kids about this news. Planning an important conversation like this can have many facets. For example, you might wonder when should you tell them, who should participate in the conversation, what they might understand and what you should expect from the conversation.

Pick the right moment

Divorce: How to protect yourself

The divorce rate of couples 50 and older has rapidly increased in recent years. This means that after 20 or 30 years of marriage, couples are now splitting finances. If you have been saving and investing together for so many years, dividing finances may be difficult. Here are some tips on how to protect yourself.

Know your assets

New child support mandate urged for SNAP recipients

Many people in North Carolina rely on food assistance from the Supplemental Nutrition Assistance Program or SNAP, formerly known as food stamps. This government program serves an average of 40 million people across the country, helping them to make ends meet and receive assistance with basic nutrition needs. In many cases, SNAP recipients are single parents raising their children. Around 37% of children living in single-parent families are also living in poverty.

There are a number of complex causes for these children's poverty, and SNAP makes only a small dent in the burden borne by their parents. Some argue that one major cause of poverty in single-parent households is the failure of non-custodial parents to pay child support or fulfill their obligations under an existing support order. However, less than 50% of all poor single parents with custody of their children even have a child support order in place. In some cases, these parents have less access to and time to deal with the legal system to obtain a support order. In other cases, they feel that their informal support agreements with the other parent will be endangered by going to court.

The connection between divorce and student loan debt

People in North Carolina with student loans may be struggling under significant debt burdens compared to borrowers just a decade earlier, and this can in turn put a strain on their marriage. Over the last 10 years, the average student loan balance has risen by 62% to $32,000. Furthermore, three times as many people owe upwards of $50,000 compared to 10 years ago.

In a survey conducted by Student Loan Hero, over 10% of the 33% of people who said money disagreements led to their divorce said that student loan debt had been a problem in their marriage. The size of these debts can mean that people are unable to pay for a wedding or a home.

Factors considered in spousal support

A court in North Carolina may take several factors into consideration when determining how much a person will be required to pay in spousal support. This determination usually happens after a decision is made about property division and other financial elements of the divorce.

The amount a person pays in alimony is not just about that person's ability to pay and what the spouse needs. A court may also consider how old both spouses are, how their health is, what their lifestyle is like, how long they have been married, whether the couple has minor children and what non-marital assets each person owns. Some alimony may only be awarded for a period of time that allows the spouse to return to school or train for a new job.

Two lessons to learn from the divorce of Jeff and MacKenzie Bezos

Not everyone needs to go through a problem to take away lessons from it. It's often easier to learn from others. For example, many North Carolina couples who are going through a divorce are taking away some lessons from the separation of Amazon CEO Jeff Bezos and his wife MacKenzie. This high-profile breakup is receiving a lot of attention because of the complexity of dividing up a large estate. In addition, people have noticed that the couple did a few things that made the best of the situation.

Early in the divorce, Jeff and MacKenzie decided to release a joint statement using a social media platform that announced their decision to divorce. However, they said that they would continue to be friends. Even if they were angry with each other behind closed doors, presenting a unified vision to the public sets the tone for the divorce process. It makes the situation easier when children are involved, and it can prevent issues that could arise when family and friends feel the need to take sides.

What is North Carolina’s divorce-linked asset distribution scheme?

Divorce in North Carolina and across the country is a family law process replete with nuance and complexity.

That begins with flat-out state-by-state variances in the relevant laws and procedures relevant to marital dissolution. Although there is certainly common ground among the states concerning divorce variables, there are also distinct differences in approaches toward things that need to be considered and legally attended to.

Prenuptial agreements more common among millennials

Millennials in North Carolina are becoming increasingly likely to ask for a prenuptial agreement. This is according to a survey of the American Academy of Matrimonial Lawyers (AAML). Of those surveyed, 51 percent said that they saw an uptick in the number of people between the ages of 22 and 37 asking for such an agreement. There are many reasons why this is the case, and one of them has to do with people getting married later in life.

This means that they may have assets such as retirement savings or a business that they want to protect. One takeaway from the AAML survey was that women were likely the ones who were starting the conversations about prenuptial agreements. It is not uncommon for women to be the sole or primary income earners in a relationship, and it is becoming more common to see them pay alimony or child support.

Benefits of a postnuptial agreement

You may be most familiar with prenuptial agreements, but did you know there are also postnuptial agreements? Postnuptial agreements work similarly to prenuptial agreements, and couples can create one whether they’ve been married 10 days or 10 years. These agreements can protect you and your spouse’s wealth and assets in the event of a divorce.

Entering into a postnuptial agreement doesn’t mean you lack faith in your marriage. In fact, some experts believe there are many potential benefits to an agreement:

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Protect Yourself, Your Finances And Your Family For The Future. Call Susan Gray Law, P.A. Today:
336-701-6521 or send an email.

110 Oakwood Drive, Suite 410
Winston Salem, NC 27103

Phone: 336-701-6521
Fax: 336-529-6325
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