Divorces occur about 50% of the time, according to Divorce Statistics, though no one gets married thinking they will likely divorce. Plus, according to LinkedIn, the divorce rate among college graduates is less than that of noncollege graduates. In fact, the divorce rate is 49% or lower! However, if you are college educated, you face many of the same financial impacts of divorce. How can divorce affect your finances?
Any debt you took on before marriage is your debt, including student loans. Let’s say that your spouse has historically helped you pay off student loans; after the divorce, that financial support will likely stop. If you took out the student loans before marriage, that debt is solely your responsibility after the divorce, even if your spouse was helping you pay them.
Conversely, if you finished college during your marriage and accumulated student debt, your spouse may have some responsibility for the loans. Divorce lawyers can help determine whether your spouse is equally or partially responsible for debt repayment.
Credit Dings for Marital Debt
One of the most common complaints divorce lawyers hear is about marital debt obligations. If your spouse took out a credit card, and you are both on that card, whether you ever used it or not, you are obligated to pay. This can be a huge financial blow. If you don’t pay, your credit will pay the price.
On the other hand, let’s say your credit was not so great going into the marriage. All the credit was put in your spouse’s name. You can walk away from the marriage but be unable to charge anything because your credit was never established.
Let’s say you graduated from college and decided to hang a shingle or start your own business. Your spouse was on board and provided financial support for the projects, but you and your spouse didn’t take steps to legitimize this business partnership. Whoever’s name appears on the business paperwork is the responsible party for that business. Whether you are the contributor or the receiver, divorce can have a huge financial impact on how the business moves forward. Divorce lawyers can help you sort the situation out.
There are a lot of financial areas that will be impacted by divorce for any college graduate. Get in touch with experienced and knowledgeable divorce lawyers who can assist you by contacting C.E.L. & Associates Inc. today!