In general, finances are the leading cause of stress in any relationship, but marriages are especially prone to breakup due to loans and other financial problems. It’s hard to manage the stress and other challenges for young couples who have to face loan and installments, early in their relationship.
According to a report from Student Loan Hero, a company for managing education loans, more than a third of borrowers face difficulty to manage their relationship and financial problems contribute to their divorce. In fact, 13 percent of young couples blame student loan for their divorces. Website surveyed more than 800 divorced adults in June 2018.
Jacqueline Newman, the managing partner of Berkman Bottger Newman & Rodd in New York said, committing to someone with that kind of student debt “feels very unfair”. Student loan which has now reached to $1.5 trillion. It has caused relationships to end or not to have children for some time. The average outstanding balance is currently $34,144, which is 62 percent more than the last decade, according to a report by Experian. Whereas, the number of borrowers who owe equal or more than $50,000 has tripled over the decade, according to a separate report by the Consumer Financial Protection Bureau.
Young graduates often do part-time time jobs along with their full time job. Sometime student debt also make students to abandon their dreams and commit to jobs which they don’t really like but pay more to pay off the debt. The stress not only hinder their lives but also relationships with their loved ones.
Jacqueline Newman said “Student loans can really hold you back. For couples just starting out, that burden is having an impact on their lifestyle and ability to buy a home or have children”. She further advices couples to sign a prenuptial agreement if they want to save their marriage. This agreement should specify that any money put toward that debt during a marriage would be credited back off the top of the marital assets.
Prenups, which usually safeguard individual assets such as retirement accounts, real estate and investments, can also cover one partner’s student loan or credit-card debt. This would make sure that if a partner chooses to help his/her partner would get his share back in case of split.