Kennedy Law Associates' Blog

When parents in North Carolina divorce, the decision to end their marriage can have a significant effect on their finances. One of the biggest financial expenditures that can accompany raising children is college or university tuition, especially with the rising cost of college education in the United States. According to the College Board, tuition goes up by around 3 percent every year, leading to a substantial increase over time. The numbers tell the story: it costs over $46,000 each year on average to attend a private four-year university and over $20,000 annually for a public university.

Parents who are married also often struggle to pay for tuition, and many students attend with a mixture of scholarships, grants, student loans and other financial aid in addition to parental support. However, parents often develop a plan for how they will save for their kids' higher education. Divorce can have a major financial impact on all areas of life, and this can include disrupting plans to pay for university. The law mandates that expenses like child support for kids under 18 or spousal support take priority. This is one reason why many parents may want to include a plan to pay for college as part of the divorce agreement.

A lack of family support, differences over religion and infidelity are all factors that may lead to North Carolina couples ending their marriages. However, commitment was most frequently named as the factor that contributed to divorce in a survey of 52 people.

The study, which was conducted by the National Center for Biotechnology Information, surveyed people who had participated in a premarital counseling program. The survey took place 14 years after the program among people who had divorced and asked them what factors contributed to the divorce as well as whether there was a last straw. For example, around one-third of people said substance abuse was a factor in their divorce, but for 12 percent, it was the final straw. Infidelity was commonly named as the final straw.

Creating a proper estate plan requires making intentional decisions, and in order to do so, one should be knowledgeable about the subject. In a previous blog, you learned about the differences between wills and trusts in an estate plan. 

Along with knowing the difference between the two, it is important to also consider key factors that affect the use and application of either a will or a trust. Here are a few important factors to be aware of.

North Carolina students who are getting married might want to consider a prenuptial agreement. While couples rarely want to think about the possibility of divorce while they are planning a wedding and students might think they have too few assets to make a prenup worthwhile, there are several advantages of these agreements for students.

Many students, especially those in law or medical school, carry large educational loans. A prenup would ensure that one spouse does not get saddled with the other spouse's debts. Furthermore, a prenup can also make plans for property division based on anticipated future earnings. Another advantage of making a prenup is that it gives couples the opportunity to talk frankly about their own financial situations and their attitudes about money. Some young people might not fully understand everything they own and owe until they have this conversation.