Did you know that the younger a couple gets married, the more likely it is that they will file for a divorce? Furthermore, divorce is becoming less of a taboo these days, meaning that individuals will choose to end their marriage if they are not happy, rather than just staying with their spouse. When a young couple decides to divorce, they will face unique challenges. In recent years, college debt has posed issues for younger individuals to separate.
Duke Law Firm, P.C. can help explain how college debt impacts the divorce process.
New York Laws
Perhaps most important is to know the specific laws and regulations regarding debts and marriage in your state. New York is an equitable distribution state. This means that the courts strive to divide property in an equitable or fair manner. There is a common misconception that this means an even 50/50 split; however, this is not the case at all, in fact, multiple factors go into consideration when determining property division—for example, the length of the marriage and each spouse’s financial circumstances.
Debt Obtained Before Marriage
If you acquired all of your student loan debt prior to your marriage, that means that it remains yours after a divorce. Even if you and your spouse have an equal amount of student loan debts, you will each continue making payments to your respective lenders. However, obtaining student loan debts during the marriage is a completely different case.
Debt Obtained After Marriage
Debts obtained after marriage require different attention. If one spouse is going to school while the other makes payments, this may lead to confusion for the divorcing spouses. If the spouse did not sign as a cosigner for these loans, then they will likely remain the responsibility of the individual who took them out. However, decisions made by the courts vary depending on the situation of each couple.
What To Do About Payments?
Paying off student loans already requires extensive amounts of money. Furthermore, divorce also introduces extra costs and fees. Younger couples who are choosing to end their marriage might find themselves unsure how to make ends meet. There are options, however, to reduce the involved costs. For example, if at all possible, negotiate the terms of your divorce with your ex-spouse instead of going to court. You can also consolidate your loans, lowering involved interest rates. Another option is to adopt an income-driven repayment plan, which may lower the amount you have to pay on your loans monthly.
Having An Attorney Can Help
While it is true that retaining an attorney involves fees, it can help prevent you and your spouse from going to court, which will only result in more expenses. Duke Law Firm, P.C. can assist in assessing your unique situation, including student loans, finding the best resolution for you.
To schedule a consultation, call us at (585) 449-4987 or visit us online.