Many married couples share finances, which is why the divorce process involves separating those assets. When federal student loans are involved, divorce becomes more difficult and stressful to deal with. Both spouses may end up with more financial responsibilities than if they remained married. There are certain rules that affect spouses with debt according to divorce law in Florida.
While paying off a federal student loan, your monthly payments could increase or decrease upon a divorce. If there was a joint income that no longer exists, your monthly payments and interest rates could increase.
In some states, including Florida, both spouses are equally responsible for paying off debts regardless of the divorce judgment. A student loan is a marital debt if it was borrowed during the marriage. The loan payments are split in half between the spouses, even if only one person went to school.
One reason for this is because both spouses are expected to benefit from an increase in one spouse’s income after completing an education. This increased income will help the other spouse to receive fair alimony.
Know how the divorce courts work
The government provides federal student loan programs and often creates financial forgiveness programs, such as the CARES Act, to benefit students during economic crises. However, during and after a divorce, these debt relief benefits may not be enough to maintain a good financial condition. Once your income is reduced, your student loan payments may increase while your benefits decrease.
It’s important to know about factors that could affect your personal finances before, during, and after a divorce. Knowing your rights and responsibilities can help you fight for a fair outcome.