Over 42 million Americans have student loan debt, and the numbers are steadily rising. While many are getting married later in life, some couples tie the knot early on. Some couples get married after one person has already accepted student loans, while others tackle the risk together. Therefore, when Alabama couples divorce, student loan debt can pose complicated financial problems.
Alabama, like many other states, follows the equitable distribution doctrine. Unlike community property states where everything is split 50/50, Alabama's courts now divide assets and debts fairly—and the division isn't always equal. If either spouse has a high earning potential, they'll likely get fewer marital assets and less debt.
Allocating assets and debts is challenging, especially when divorces involve student loans. According to a report from Education Data Initiative, US student loan debt totals nearly $1.75 trillion, with the average borrower owing about $40,000. A spouse's responsibility for college debt depends on the answers to a few basic questions:
Untangling finances after a divorce is never easy, but the process may become even more complex when spouses have student loan debt. A divorce attorney in Cullman can use their knowledge of state law to help you achieve a fair outcome. Call today to schedule a consultation.
Also known as prenups, these agreements are contracts signed by couples prior to marriage; they outline how debt and assets are divided in the event of a legal separation or divorce. For instance, a prenup may specify that student loans are each spouse's responsibility, regardless of when they're taken on.
Prenuptial agreements override state law, even in equitable distribution states like Alabama. This provides couples with a degree of clarity when things get confusing during a divorce. Verbal agreements, such as those where one spouse works to put the other through school, should be finalized in a prenuptial agreement to ensure that they're legally binding and considered during the settlement phase.
Dealing with divorce and student loans is difficult, to say the least. As spouses untangle their personal lives and finances, they should ask and answer these student loan questions.
No matter the extent of your ex-spouse's student loan debt, you shouldn't be held entirely responsible. Contact us via our online form or call today to request a consultation.
Student loan debt shouldn't make Alabama divorces unaffordable. Follow these straightforward tips to pay the debt down quickly and efficiently.
No matter how bad your personal financial situation has become during an Alabama divorce, it's important to remember that you aren't the first person to have such difficulties. Call our office today to learn how a divorce attorney can help minimize the financial hardship imposed by a spouse's student loan debt.
We know that divorces are logistically, emotionally, and physically debilitating, and we're here to lessen the burden. Hiring an experienced divorce attorney will make the process fairer and more affordable. Because our firm focuses on Alabama family law, we understand the dynamics of divorce and can walk you through the process. Call or click to schedule a no-obligation consultation with a Cullman divorce lawyer.
The Kilgo Law Firm All Rights Reserved | The content on this website is owned by us and our licensors. Do not copy any content (including images) without our consent