Charleston Law Blog

Generally, millennials and members of Generation Z in South Carolina and other states have been more cautious about debt than earlier generations. Part of the reason for this is because many of them lived through the recession that took place around 2008-10. But this trend may be reversing as more individuals within the younger generation continue to accumulate credit card debt.

Among 18- to 29-year-olds, credit card delinquencies of 90 days or more passed the 8% mark for all balances within the first quarter of 2019, which represents a nearly 10-year high. Part of the reason for this trend may be the increase in appealing credit card signup bonuses and perks like travel credits. Interest rates are also on the rise after many years of being kept at very low levels, which further contributes to debt risk.

Parenting teenagers is sometimes difficult for South Carolina parents because adolescence brings with it physical and hormonal changes that could affect mood and behavior. Adding a divorce to this mix has the potential to make things even more volatile if parents no longer living together don't make an effort to avoid co-parenting mistakes.

One common co-parenting mistake with teens that divorcing parents sometimes make is failing to share information with each other. There's sometimes an assumption that a teen will tell each parent what's going on with them or exhibit the same behavior around each parent. Failing to communicate often leaves one or both parents in the dark. It's also not advised for co-parents to get into the habit of passing messages through their teen. Doing so sometimes results in messages either being delivered incorrectly or not at all.

Individuals in South Carolina and throughout the country may use their 401(k) balance to pay down debt instead of filing for bankruptcy. However, that may be a mistake as funds in a 401(k) are protected in a bankruptcy filing. The same is generally true of any money kept in an IRA. Furthermore, a person could run the risk of accumulating new debt and eventually having to seek protection from creditors anyway.

Ultimately, a person is not able to avoid the harm that bankruptcy can cause to a credit score and history. Additionally, that person typically has no savings to fall back on, and this can be especially problematic for older Americans. The number of Americans over the age of 65 who have filed for bankruptcy has tripled since 1991. The cost of medical care combined with a lack of wage growth have made them financially vulnerable.

For a couple in South Carolina going through the divorce process, one of the biggest challenges they may face is determining what they will do with the family home. It is likely that, along with their pension and maybe some larger investments, the family home is the largest asset they have. In many divorces, one spouse is given control over the family home. Then, they have to decide what they're going to do with this asset.

Some couples, especially those who have children still living in the family home, may decide to keep a joint mortgage on the home with each individual being responsible to cover their portion of the mortgage. Others may decide to refinance the family home in the name of the party who has been granted control of the home.