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How does a divorce impact student loan repayment?

On Behalf of | Nov 3, 2023 | Property Division

For many students attending colleges and universities across the United States, it is necessary to take out loans in order to pay tuition, room and board, and other expenses. Student loan debt is common, and young people preparing to marry often bring in some debt to their marriage as a result. However, a divorce may affect student loan repayment, even if each Virginia spouse is individually paying off his or her balances.

The financial implications of a divorce

Statistics indicate that the average student loan balance is approximately $59,000. While getting a divorce is difficult enough, spouses must address all of the complex financial concerns that often accompany divorce. Spouses must address what will happen to their student loan debt, which is not always easy, especially if they have both been contributing toward repayment.

It is critical for a spouse to understand his or her obligations for student loan debt when going through a divorce. If there are any joint loans, then each spouse would share responsibility for the debt. Responsibility for the debt may also depend on which spouse benefitted the most from the loan.

Fair financial terms after a divorce

A Virginia divorce will change many aspects of a person’s financial life, which is why it is important for each spouse to have legal assistance when navigating this difficult legal process. Having this support will be beneficial while fighting for a fair outcome and seeking terms that will allow one to have financial stability and security in the future. An assessment of the individual case with an attorney can provide insight regarding how to move forward with confidence.