Student loan debts could put a serious strain on the marriages of some Georgia couples. A study by Student Loan Hero found that 13 percent of divorced borrowers said student loans caused the end of their relationship. Over a third said that student loan debt combined with other financial issues played a part. With the cost of college continuing to rise, millennials are taking on more and more debt on their education. The average debt is around $34,000, but some people owe more than $50,000.
Education debt is not the only area where millennials are struggling. Half will not make more than their parents, and more than 40 percent said that they were unable to buy a home because of debt. In another survey, over 40 percent of student loan borrowers said they fought about money with their partners. Almost 20 percent said it was OK to keep financial secrets from a partner, and nearly 25 percent said they had concealed their student loan debt from their partners.
When disputes over finances lead to divorce, the financial situation of both individuals can get even worse. Divorce can be costly, and people who get a divorce who have student loans end up paying $2,000 more on average than those without student loan debt.
Two households are more expensive than one, and after a divorce, people may find themselves less financially stable. Therefore, it is important that during the divorce process, a person does not take on too much of the debt or receive too little in the property settlement. Sometimes people will agree to these conditions to get the divorce over with quickly. Individuals should also be aware that if the debt is in one spouse’s name, creditors may continue to consider that spouse responsible for the debt even if the divorce decree says that the debt will be split.