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The connection between divorce and student loan debt

| May 23, 2019 | Divorce

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.

If a marriage in which debt is an issue does end in divorce, having a prenuptial agreement might make the process of property division less difficult. If one person brings a particularly high debt into a marriage, the prenup can include a provision that in case of divorce, the other spouse is credited for payments made against the debt.

People who are considering divorce might want to read a Piedmont Triad divorce blog to get a sense of other issues that may arise during divorce. An attorney may be able to answer more specific questions about a person’s individual circumstances. For example, people might wonder whether they are likely to pay or receive spousal support, or what options for child custody might be available. Some people may think that divorce automatically means going to court, but it may be possible to reach an agreement through negotiation. Couples who have debt should be aware that even if they agree to split it in the divorce agreement, creditors will still consider the borrower legally responsible. They may want to try to transfer debt or address this in another way.