Some Texas millennials may be in danger of getting divorced because of difficulties with managing student loans. A survey by the site Student Loan Hero found that 13 percent of divorced respondents said their marriages ended because of student loans. More than 33 percent blamed student loans as well as other financial issues.
The average outstanding balance for student loans has increased more than 60 percent in the last 10 years to $34,000. Borrowers who graduated in 2017 owed more than $39,000, and some people have upwards of $50,000 in student loan debt. In another survey, more than 40 percent of borrowers said they fought with their partners about money. Almost 20 percent said lying about finances to a partner was OK, and nearly a quarter had not disclosed the extent of their student loan debt to their partners.
Millennials are struggling with finances in other ways as well. Only about half will earn more than their parents, and 41 percent say debt is preventing them from purchasing a home. Unfortunately, because divorce can also be costly, people may end up with more debt following the process. Furthermore, on average, people with student loan debt tend to spend $2,000 more on divorce compared to those who do not have this debt.
Issues about money is one of the main causes of divorce for adults of all ages. Since Texas is a community property state, all the assets and debts either person has acquired since the marriage might be considered shared property. This means that an individual may be required to take on part of his or her spouse's debt. If a couple is splitting debts, they may want to include a provision in the divorce agreement that addresses what will happen if the debt is in one person's name, and the other person does not pay per the agreement.