Dividing Student Loan Debt in a Divorce

Posted on by Robert J. Reeves
Dividing student loan debt in a divorce can get very complicated. Everybody knows that during a divorce, spouses must divide up their assets. But not everybody realizes that they also divide their debts. Divvying up student loan debt depends a lot on when you took out the loan as well as what the money was for. It also is important to lay out who benefitted from the loan. A judge will take into account many things when deciding to divide up marital assets. There isn’t any one answer on how loans are split. However, the goal of any judge is to make things fair and equitable for both parties. The best way to ensure that you are getting the best settlement possible is to hire an experienced divorce attorney to represent you.

Dividing Student Loan Debt in a Divorce: What Happens to Debt?

Pre-Marital vs. Marital Debt

When dividing student loan debt in a divorce, a judge will ask “when did you take out the loan?”. If you got the loan before marriage, then it is not a marital debt. Therefore, your spouse would likely not take on any of the debt during a divorce. However, the loan is a marital debt if you were in school when you married. Or if you took the loan out after marriage. In this case, a judge will decide how to split it fairly.

Where Did the Money Go?

Another question that a judge will try to answer is “where did the money go?”. If you used the money on something like housing, then your spouse also benefitted from it too. In this situation, they might be responsible for some of the debt. However, if it was entirely for tuition, a judge is more likely to assign the debt only to the student.

Who Benefitted from the Loan?

When trying to divide student loan debt in a divorce, a judge will also look at who benefitted from the loan. For example, if you divorce right after graduation, then your spouse is not likely to benefit at all from the loan. However, if your spouse graduated and used the credentials to get a high-paying job for many years before the divorce, then you did benefit. A judge is more likely to split the debt if you benefit from the money and your spouse’s education.

The Big Picture

While there are many factors that a judge takes into consideration when dividing student loan debt into a divorce, they are mostly looking at the big picture. For example, they will take into consideration things like each of your salaries and assets. They’ll also consider alimony and other spousal support payments. The goal is to divide your marital assets and debts equitably. When a judge is dividing student loan debt into a divorce, things can get a little messy. Just as with all aspects of divorce, a lot of factors contribute to the divvying up of debt. A judge will look at when you took out the loan as well as what you spent the money on. They’ll also think about who benefitted from the money and how it fits into the overall picture of your financial health as a couple. The goal of any divorce proceeding is to split up marital assets, property, and debts in a way that is fair to both parties. Hopefully, if you have concerns about student loan debt, your divorce attorney can help you navigate them and ensure that you get the settlement you are entitled to.

Financial Infidelity: Potential Signs

Posted on by Robert J. Reeves

When people think of a spouse cheating, most of the time they think of physical encounters. However, financial infidelity is something which not only occurs, but is also on the rise. Knowing some common signs of this infidelity can help you see if it’s occurring in your marriage…

Financial Infidelity: Unconventional Cheating

Missing cash

Have you noticed money missing from a joint account you and your spouse share? Does your bank statement show a lot of withdrawals you don’t know about? If so, you might want to be careful. Missing money can be a potential sign of financial infidelity.

Now, sometimes a spouse will take out money for something and forget about it. That’s totally normal. However, constant withdrawals for varying amounts can be reason for concern. When you notice this, you’ll want to ask your spouse about what’s going on. In the meantime, try to keep your money in a separate account to keep it secure.

Many new purchases

If your spouse is making a lot of new, constant purchases all the time, that can also be a sign of financial infidelity. Of course, people like to treat themselves every now and again. It becomes an issue when it seems like your spouse is making a purchase every other day. Usually, these purchases can be very cheap, very expensive, or somewhere in-between.

Your spouse might even try to hide these purchases from you. They may always try and get the mail or packages, or use a separate bank account to prevent the purchases from showing up on your end. Sometimes, they might even use something like a P.O. box so they never arrive at the house!

They don’t like financial talk

Talking about finances is a part of any good marriage. Plus, if you feel like you’ve noticed signs of financial infidelity, you’ll want to bring them up to your spouse. Yet, what if your spouse gets upset when you try to have these conversations? This can actually be another sign that financial infidelity is going on.

If you talk finances to your spouse, they might be worried you’re going to bring up their actions. This can make them want to avoid talking about it all together. Still, it’s important to do so if you want to fix this problem together. Not doing so will strain things even more.

Budget Mistakes: Post-Divorce Finances

Posted on by Robert J. Reeves

Having a good budget is important for your post-divorce finances. However, not everyone gets it right the first time. Making budget mistakes can really add some financial stress which you could’ve avoided. Therefore, it’s important to know what are some common ones, and how to fix them…

Budget Mistakes: Common Missteps

Forgetting what’s “essential”

When most people make their new budget, they want to focus on essential expenses. These are the things they know they’ll need, and have to make sure they have money for. Still, many people tend to forget what exactly counts as an essential and what is something they could go without, which is one of the more-common budget mistakes.

For instance, things like grocery shopping, utility bills, and rent/mortgage payments are all essentials. You will need to pay these things so you have food to eat and a roof over your head. Yet, you don’t need premium subscription services or streaming services. It might not seem like much, but that extra money can really make a difference.

Overestimating income

Another of the common budget mistakes has to do with income. For most people, their income is the money they can use on their expenses, and hopefully save up as well. The issue is that income isn’t the simple, straightforward number we tend to think that it is. Rather, they need to account for net income.

Net income is the amount of money you actually take home. After all, everyone has taxes and other deductions taken out of their paycheck. That’s going to limit the amount of money you’ll have to spend. Therefore, you need to plan around that net income instead.

Not seeking outside help

Budget mistakes can be troublesome, but they are also something you can fix. Sometimes, however, you might struggle to see what exactly you need to change. When this happens, you’ll want to avoid yet another mistake where you don’t get extra help.

Meeting with some kind of financial adviser can help you see what’s wrong and how to fix it. They will work with you to look at your budget, and make sure you understand what’s causing issues. Then, they’ll develop a plan to help you turn things around and make it finally work for your needs.

Prenuptial and Postnuptial Agreements

Posted on by Robert J. Reeves
Prenuptial and postnuptial agreements are very similar in many ways. Both are legal contracts that protect a couple financially in the event of a divorce. However, prenuptial agreements are for couples that are about to wed, while postnuptial agreements are for couples that have already. Both of the agreements can outline what happens to assets and properties after a couple gets a divorce. However, no matter which type of agreement you’re deciding on, speaking to an experienced attorney is the first step to take. They can help ensure that the agreement is legal and binding and make sure that you protect yourself in the case of a divorce.

Prenuptial and Postnuptial Agreements: Who Needs What

Prenups

Prenuptial and postnuptial agreements are similar in their substance, however, you use them at different times. A prenuptial agreement happens before marriage. Many couples use them if one spouse is coming into the marriage with considerably more assets than the other. They can protect you if your partner brings a lot of debt to the marriage. They can even protect children from previous marriages. If a couple cannot agree on a prenuptial agreement, they might decide not to proceed with the marriage.

Postnuptial Agreement

In contrast, a postnuptial agreement is used after a couple gets married, so it’s too late to call off the wedding at that point. However, prenuptial and postnuptial agreements still cover similar things. For example, they can outline what happens to assets in the case of divorce. They can cover things like spousal support and what happens to debt.

When to Use Each

While prenuptial and postnuptial agreements are similar, it’s important to know when to use each. Couples that did not get prenuptial might later get postnuptial if they are married. A postnuptial might be helpful if one partner has a sudden windfall. For example, if they inherit a large sum of money. In addition, it can protect a spouse if their husband or wife has reckless spending habits and is accumulating large debts.

Creating an Agreement

Both prenuptial and postnuptial agreements need to be written by an experienced attorney. They can help ensure that the agreement is legal and enforceable. Contact an attorney to help you figure out exactly what to include in your agreement so that you are protecting yourself as much as possible.

Prenuptial and postnuptial agreements are both legal documents that can outline what happens to a couple’s assets in the event of a divorce. And both of them are a great way to protect yourself financially in the event of your marriage ending. However, they differ because a prenuptial agreement is for couples that are about to marry, and a postnuptial is for those that are already in a marriage. You can use either one to protect your assets and any children from a previous marriage, and guard yourself against your partner’s debt. If you are wanting to create either a prenuptial or postnuptial agreement, you’ll want to contact an experienced attorney. They can ensure that you include everything you need to protect yourself as much as possible.

Who Gets the Marital Home in a Divorce?

Posted on by Robert J. Reeves
▲
 The question of who gets the marital home in a divorce depends a lot on where you live and your unique situation. This can often be one of the most complicated aspects of a divorce proceeding because it’s often a couple’s biggest asset. In addition, there are always a lot of emotional connections to a family home. When couples are trying to decide what to do about the marital home, there are typically three common options. One spouse might stay in the house while the other moves out. Or both spouses might sell the home and each takes their equal portion. And unfortunately, couples often cannot agree and wind up needing to go into litigation over this and other issues. If this is something you are wondering about, the best thing to do is to hire an experienced divorce attorney who can represent your interest
The question of who gets the marital home in a divorce depends a lot on where you live and your unique situation. This can often be one of the most complicated aspects of a divorce proceeding because it’s often a couple’s biggest asset. In addition, there are always a lot of emotional connections to a family home. When couples are trying to decide what to do about the marital home, there are typically three common options. One spouse might stay in the house while the other moves out. Or both spouses might sell the home and each takes their equal portion. And unfortunately, couples often cannot agree and wind up needing to go into litigation over this and other issues. If this is something you are wondering about, the best thing to do is to hire an experienced divorce attorney who can represent your interests.

Who Gets the Marital Home in a Divorce? Post-divorce Living Arrangements

Questions of Legality

Who gets the marital home in a divorce often depends a lot on what state you live in. In North Carolina, if you are legally married, you and your spouse own your property as tenants by the entirety. This means that you each have an equal share in the house. In other states, things are handled differently. An attorney can help you understand the rules and rights in your state.

One Spouse Stays

Often, the way things are handled in the marital home in a divorce is for one spouse to stay and the other to move out. Often this decision depends on each spouse’s financial situation, job, and custody situation. If one spouse is the main caregiver for the children, it’s often easier for them to stay in the home and let the other spouse move out. However, some couples choose to share the home even after divorce.

Both Spouses Sell

Another common situation that happens with the marital home in a divorce is that both spouses agree to sell the home. Each would get an equal share of the proceeds from the sale. This is often the case for couples in which neither person wants to stay in the home. This might be for emotional or financial reasons.

Spouses Cannot Agree

Finally, and most commonly, spouses cannot agree on how to handle the marital home in a divorce. If this is the case, they often need to go to litigation over the issue. A judge will decide what is the most fair and equitable way to handle the situation. If you are facing this option, the best way to protect yourself is to hire an experienced attorney.

Handling the marital home in a divorce is often a complicated and tricky topic. It can also be one of the more emotional aspects of ending a marriage. Your family home contains so many memories and is often a couple’s biggest asset. A lot depends on where you live, but in North Carolina, couples own their properties equally. If couples can agree outside of court, they often choose for one spouse to move out while the other stays in the home. They might also jointly agree to sell the home and split the proceeds. But more often than not, couples end up in litigation. The best way to handle this situation is to hire an attorney to help you get the settlement and divorce situation that you deserve.

Home Buying Post-Divorce

Posted on by Robert J. Reeves

When your divorce is over, it might be nice to spruce up the home a bit. However, what if want to live somewhere new? Home buying post-divorce can be a bit complex, which is why you’ll want to make sure you do it right…

Home Buying Post-Divorce

Be financially ready

Before engaging in any home buying post-divorce, you need to be financial prepared. Divorce tends to leave a big impression on a person’s finances. You might have to not just pay divorce costs, but also adapt to a new single-income household. This can leave your finances in a bit of a critical state.

Plus, buying a house isn’t cheap. It’s a big financial commitment, so you need to be sure you’re ready. Consider what you have saved now, and if it’ll cover buying a house and the other costs, like moving. It’s much better to wait and save in order to avoid financial issues.

Know your needs

Another thing to consider when home buying post-divorce is what you need in a house. For instance, if you have kids, you’ll need rooms and space for them. If you don’t, then you could make due with a smaller home. Or, maybe you need a house which is closer to your new job.

When you recognize your needs, you can plan your house searching accordingly. Plus, you’ll also avoid buying a house with things you don’t need. After all, the bigger the house, the more it’ll cost. Saving money when you can is always handy with purchases like these.

Use a professional

Home buying post-divorce isn’t something you want to do blind. Trying to find house and look at them yourself is going to be a struggle. Plus, odds are you don’t know the finer details which you should be looking for. That’s why it’s useful to bring in a professional.

Making use of a real estate agent can help ensure you find the right house for you. These agents will know what homes are available, if they fit your budget, and where they may need repairs or inspections. That way, you don’t get burned on a potentially bad buy.

Recovering Financially After Divorce

Posted on by Robert J. Reeves
Recovering financially after divorce can be a lengthy process. Divorce is very expensive and can leave you in a very different financial situation than before you started. So it’s important to take stock once the dust settles and see where you are with your finances. Figure out your credit score, and work on rebuilding credit if it’s low. Create a budget and try to stick to it as much as possible. And remember to focus on your savings account so that you are prepared for emergencies and unexpected expenses. It can be helpful to get help from a financial advisor to create a realistic budget. Hopefully, you can begin building up your credit and putting away money for savings.

Recovering Financially After Divorce: Moving On without Going into Debt

Take Stock

After you’ve given yourself a little time to heal, it’s important to take stock of where you are once the divorce is final. Your living situation might have changed as well as your expenses and income. Therefore, it’s helpful to create a list of all of your assets, debts, income, and savings. Figuring out what’s coming in versus going out can help you with recovering financially after divorce.

Find Your Credit Score

Another important aspect of recovering financially after divorce is to figure out your credit score. Your score might change now that you and your ex have separate accounts. And your credit score is very important when you need to make decisions about housing or vehicles. Check your score, and if it’s low, look into ways to bring it up. Make sure to always pay bills on time and pay them in full.

Create a Budget

Now that you are living on your own, you need to create a budget for yourself. This might look very different than the budget that you and your ex shared. It can be helpful when recovering financially after divorce to put yourself on a limited budget to build up your savings. Try to cut back on unnecessary spending like eating out or purchases. At least for a little while until you can get more stable.

Focus on Savings

Finally, when recovering financially after divorce, focus on your savings. It’s important to have healthy savings account so that you are prepared for emergencies. Or for unexpected expenses like medical bills, car maintenance, or house repairs. It’s just you now, so you need to have a safety net for yourself. Focus on an emergency fund first, then move on to saving for things like vacations. Recovering financially after divorce can be a stressful process, and might be an eye-opener if you’ve never lived on your own. It can be scary to go from two incomes to one or to lose the support of a spouse’s income. However, you will find your way soon enough. Take stock of all of your spending and savings once the dust has settled from your divorce. Figure out your credit score and start working on building it up if it’s a little low. Create a budget and try to stick to it as closely as you can. This way, you’ll be able to build up your savings so that you’re prepared for emergencies. Hopefully, you will figure out your finances and become stable quickly as you build your savings up.

The Logistics of Divorce: The Details

Posted on by Robert J. Reeves
When we think of divorce we often forget about the logistics of divorce. The tiny details have to be figured out for a divorce to become final. For example, you’ll need to decide when and how to tell people about your split. You’ll also need to figure out when and how to move out. Changing your name can be a lengthy process as well. And finally, you’ll need to work out your custody agreement and parenting plan. When thinking about the divorce process, on the whole, it’s easy to forget these smaller logistical details.

The Logistics of Divorce: The Details that Need to be Hammered Out

When to Tell People

One part of the logistics of divorce is figuring out how to tell people about the divorce. It’s really best to keep your divorce as private as you can until it’s final. However, there are some people that you’ll probably want to tell ahead of time. For example, your parents or close family members. You should also let any close friends know that you’ll need support so that they can help you through the process. And finally, you should give your boss or HR rep a heads up in case you’ll be needing to miss work for court appearances and meetings.

When to Move Out

Another piece of the logistics of divorce is deciding when and how to move out. You can decide at any point when the time is right to have your partner move out. But you’ll have to figure out which of you will be leaving and how you’ll be handling the finances of mortgage payments. You’ll also need to figure out if your children will be spending time at both houses.

Changing Your Name

Another piece to consider when thinking of the logistics of divorce is changing your name. This process can be lengthy and complicated. You’ll need to wait until your divorce is final before trying to change your name back. But once it is, you can start at the social security office. Once you have your new social security card you can begin to change your name with other entities. You’ll need to update the post office, credit cards, bill payments, and others. You’ll also need to apply for a new passport and driver’s license with your new name.

Custody Agreements

Finally, one final piece of the logistics of divorce is deciding custody. You’ll most likely cover this in your divorce court meetings, but have an idea of what you’d like to get out of it. Consider things like what your ideal schedule will look like and how you’ll handle holidays. Also consider major parenting decisions like how you want your children brought up, what religion, how they’ll be disciplined, who they spend time with, curfews, diet, etc. Make a plan for how you’d like to financially prepare for schooling and child-care-related expenses. Most of this will be decided on in court, but it’s a good idea to have some plan for what your goals are. Divorce can be overwhelming and emotional. And often we forget about the smaller logistics of divorce amongst the more pressing matters. But the details are important too. You’ll need to decide when and how you’ll tell everybody about the news of you splitting up. You’ll also have to figure out what your and your ex’s new living arrangements will be. Don’t forget about changing your name. And finally, you’ll need to decide custody agreements and put a parenting plan in place if you plan on having joint custody. They say the devil is in the details, but hopefully, you’ll be able to prepare for these logistical details of divorce and make the process smoother.

How to Build Credit During or After Divorce

Posted on by Robert J. Reeves
It’s extremely important to build credit for yourself if you are going through a divorce. That way, after your divorce, you will be able to do things like buy a car or rent an apartment. Ideally, you should be building credit your entire life. But if you haven’t already, it’s not too late to start. To establish credit, the easiest way is to open a credit card. Then you’ll need to practice healthy spending habits as well as borrowing habits. Having your own credit is necessary for having financial independence after your divorce.

How to Build Credit During or After Divorce: Financial Health

When to Build Credit

Ideally, you should build credit throughout your entire life. Parents often start building credit with their teenagers by opening a credit card in their name in high school. This is a good way to teach financial responsibility. However, if you do not have credit in your own name, you’ll need to build credit soon. It’s best to go ahead and establish a credit card before your divorce is final. This way, once it is over, you’ll be able to rent a new apartment or house or make big purchases on your own.

How to Establish Credit

The easiest way to build credit is to open a credit card in your own name. You can do this at any bank or online. This will establish a credit history for you. It can be difficult to open a credit card if you do not have any credit history whatsoever. So you might need to start with having a cosigner or getting a secured credit card. This is a card that is backed by a financial deposit that you make upfront.

Healthy Spending Habits

It’s important to establish healthy spending habits in order to build credit. Learn how to budget for things in advance. It’s also important to learn self-control so that you can stick to your budget. Keep track of your spending by reviewing your statements frequently. This will ensure that you don’t become a victim of identity theft. And remember to put a portion of every paycheck into your savings account before spending any of it.

Healthy Borrowing Habits

It’s also important to establish healthy borrowing habits when trying to build credit. Never borrow the full amount that you are able to. In fact, it’s best to only borrow a very small amount and have a plan in advance for how you’ll pay it off. At the end of each month, pay off your credit card balance in full. It’s a common misconception that you should leave a small balance from month to month. The truth is that your credit score will be higher if you pay off the full amount monthly. After a divorce, you’ll need to have a healthy credit history that is all your own. That way, you’ll be able to start your new life, including renting a new place or affording your own vehicle. It’s important to build credit early so that you have a long-established credit history. Do this by opening a credit card, co-signing a card, or getting a secured card. Establish healthy spending habits so that you stay within your budget. And finally, establish healthy borrowing habits and pay off your credit card balance every month. Having a solid credit history will give you the financial independence you need to start your new post-divorce life right on the right foot.

How-to Identify Financial Abuse in a Relationship

Posted on by Robert J. Reeves

When you think of domestic violence and abuse, you probably think of physical and verbal abuse. However, there are many forms of abuse. Oftentimes, financial abuse is overlooked. According to a study by the Centers for Financial Security, 99% of domestic violence cases also involved financial abuse. In fact, it is often the first sign of dating violence and domestic abuse. Learn the signs of financial abuse in a relationship so that you can protect yourself.

How-to Identify Financial Abuse in a Relationship: Knowing the Signs

What is Financial Abuse?

Financial abuse can vary from situation to situation. There is no one perfect example of it. However, it does involve controlling someone’s ability to get, use, and maintain financial resources. The victims may even be prevented from working so that they are unable to make or access money for themselves. In addition, the victims of financial abuse in a relationship may have their own money stolen or limited by their abuser. If the victim does have access to money, they may have to account for any of it that they use.

Look for Signs of Abuse

While every situation is different, there are certain things you can pay attention to. First, abusers may use or controls the money you have earned or saved. Examples of this include using your money or credit cards for their own benefit without asking. They may also ask to borrow money from you and never repay it. Also, they may ruin your credit by charging things to your account and not paying them off. Another sign of financial abuse in a relationship is if they have a double standard when it comes to spending. For example, they may spend money on entertainment, dining out, and clothing but criticize you when you make similar purchases

They may start to control where you can or can not work, and may even make you quit your job. In addition, they may actually try to sabotage your job. It is possible for them to go as far as hiding your car keys or removing your car battery so that you can not show up to work. These are only just a few of the signs of financial abuse, but there are many more.

Get Help

If you or someone you know is a victim of financial abuse in a relationship, get help right away. Call a counselor, advocate, or religious leader. Remember that financial abuse is not something that gets better with time. Oftentimes, it can actually end up leading to other types of abuse. You can also call the National Domestic Violence Hotline at 1-800-799-7233 for confidential assistance from trained professionals. Do not wait until it is too late to get help.