. It can be debt the spouses incurred for their own education or money borrowed for their children’s college education.
"Student loan debt often represents the greatest financial burden for many borrowers, sometimes even surpassing the amount owed on their home," Melody King, an attorney at the North Carolina firm of Ward & Smith, told Yahoo Finance. "With so much at stake, proper classification, valuation, and distribution of student loan debt is vital.
In the past, spouses that jointly consolidated their federal student loans had no way to separate those loans upon divorce. “If the borrowing spouse is eligible for public service loan forgiveness in 10 years or a IDR loan discharge in 20 or 25 years, that impacts the distribution of assets and debts,” King said. “It matters if discharge is in the foreseeable future and has tax implications at the federal and state level.”Aside from student loan debt taken out by a spouse, the other consideration is debt taken out for children, like Parent PLUS loans or private student loans.
Ronda is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government. Follow her on TwitterYour TFSA can be taxed, but it likely won't be if you hold a small position in Royal Bank of Canada stock. The post Think Your TFSA Won’t Be Taxed? Think Again appeared first on The Motley Fool Canada.As economic indicators shift, even seasoned investors like Warren Buffett are adjusting their outlook.
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