While a growing national conversation has pointed to the damage that massive student loans have done to millennials' financial well-being and future, that student loan debt could also pose a risk to their marriages. Student loan debt is a significant financial issue for many, especially young people. Across the country, the average educational debt burden is $34,144 while that number is $39,400 for people who graduated as part of the class of 2017. In addition, over the past decade, the percentage of borrowers who owe $50,000 or more has gone up by three times.
The trauma of divorce doesn't always end when the final documents are signed. For warring Pennsylvania couples with children, the trauma is likely to continue unless they can agree on a suitable co-parenting arrangement.
One of the main worries people have when getting divorced is usually related to financial issues. For Pennsylvania residents who think divorce is a possibility or who are about to start the process, divorce does not have to come with financial shock if they educate themselves about their financial status beforehand.
Most noncustodial parents in Pennsylvania and around the country have their child support payments deducted electronically from their paychecks. Payroll deductions accounted for $24.4 billion of the $32.4 billion in child support collected in 2017 according to the Office of Child Support Enforcement. The federal agency oversees child support collection in the United States and coordinates with local, state and tribal authorities to encourage responsible parenting and ensure that the financial needs of children are met.
Couples considering divorcing in 2018 may want to get an agreement in place before the new year. The Tax Cuts and Jobs Act will eliminate deductions for those responsible for paying alimony for a high asset divorce. The changes affect family law matters for divorce in Pennsylvania.
Couples in Pennsylvania who do not embrace traditional gender roles at the start of their marriages might be less likely to divorce. A Swedish study found that when women start out a marriage in a more traditional role and earn no money or less than half of their husbands' salaries and then experience a surge in income and their careers, these couples are more likely to get a divorce than those that have been equal from the start.
Disagreements are common in marriages, but some fights may be more likely to lead to divorce than others. A recent Harvard Business School study found that of the 3,000 couples interviewed, 25 percent of them listed arguments over housework as the top reason for their divorce. There are some things a Pennsylvania couple can do to avoid fighting over housework and spend more time together.
Pennsylvania parents often worry about the effects of divorce on their children. This is understandable as it's difficult to guide kids through a separation and the negative feelings that come along with the process. Therefore, family therapists caution parents not to conduct themselves in certain ways that could confuse children or make them feel caught between their parents. They also recommend a few actions parents can take to help children transitioning to life after divorce.
The vast majority of child support payments in the United States are processed via payroll deductions. Pennsylvania parents receiving child support in this manner will be pleased to learn the federal agency in charge of regulating the process has announced improvements that should increase compliance and shorten the timeline for initial payment processing.
Pennsylvania couples who are getting a divorce might have a retirement account they need to divide. Distributions can be made from a retirement account during a divorce without incurring penalties for early withdrawals or taxes, but they must be done according to certain regulations.