Married couples in Pennsylvania who have student loan debt may at a higher risk of getting divorced. The average student loan balance has increased 62% over the past decade to $34,000. Furthermore, the number of people who owe more than $50,000 in student loan debts has also increased significantly.
Many Pennsylvania spouses who are going through a divorce are anxious about the process and have no idea what to expect. It's important to remember that each divorcing couple's circumstances are different. Small details can mean the difference between a smooth, amicable separation and a lengthy, contentious battle. Generally, the most complicated divorces involve couples who have a high-net worth, own a business or have fundamental disagreements regarding custody of the children.
Pennsylvania parents who decide to divorce may consider many factors relating to how the end of the marriage might affect the parent-child relationship. From child custody and visitation to negotiating an amicable co-parenting framework, divorcing parents do a great deal of work to prepare for their future. One issue that people may not consider immediately is how the divorce might change their tax filings.
When a marriage in Pennsylvania begins to hit rocky waters, financial secrets can begin to grow. Some of these hidden finances can be especially troubling during a divorce, where they may originate as an attempt to deny a spouse his or her fair share of marital property. While many people are able to end their marriages without recriminations or schemes, it is important for individuals going through a more high-conflict divorce to be aware of red flags that could point to hidden funds or other financial secrets.
Pennsylvania residents who are married for the first time have a roughly 50/50 chance that it will last forever. The odds of success are lower for second and subsequent marriages. However, there may be compelling financial reasons to avoid a divorce if possible. For instance, married couples who own a home will need to figure out what to do with it. While a person could keep the home, it can be hard to maintain it on one income.
Starting at the beginning of 2019, couples filing for divorce in Pennsylvania and throughout the rest of the United States will have to do so with tax rule changes in mind, particularly if spousal support will be involved. This is happening because the Tax Cuts and Jobs Act (TCJA) changes how alimony is handled for tax purposes. Under the new law, alimony will not be tax-deductible for the payor, and the recipient won't be required to report it as taxable income.
Nearly all spouses keep some kind of financial secrets from their partners. This deception may be something small like a splurge at the mall or something embarrassing like credit card debt. In some cases, however, a spouse may hide income, assets or spending habits that may affect the welfare of the family or the level of trust the couple shares.
After your first marriage ended, you may have resolved to make the next one work. You learned from your mistakes, and you were confident you would not repeat them. Like many who remarry, you may have hoped you found the perfect partner this time. The first divorce probably made you painfully aware of every flaw in your spouse, and you thought your new partner might be different.
You fill out the paperwork, sign your names and start your new life. Few divorces are that easy. In fact, the more shortcuts a person tries to take, the more likely the process will drag on.
So, it's that time of year again. The holiday season is upon you and you are anticipating festive times with family, co-workers and friends. Only one thing about this particular year is different than all others past: You're now divorced, and your kids are having a tough time.