How are student loans divided in divorce?

Debt obtained after the marriage is typically regarded as shared debt and will be divided during the property division process. If student loan debt is determined to be marital debt, then it will likely be divided between both parties.

When is a student loan considered marital debt?

If your marriage ends soon after graduation, a student loan is more likely to be considered separate debt. But, if the loan made possible a substantial income from which both spouses benefitted over many years, there’s a better case for considering it to be marital debt.

Do you have to pay off student loans if you get married?

Fortunately, the answer is no—at least, not when it comes to the legal responsibility for the debt in marriage . Debt that exists before a couple gets married, including student loans, is “individual property” and remains the sole responsibility of the partner who initially borrowed it.

Can a student loan debt be divided in a divorce?

The tax benefits or consequences of paying off student loans may make it more or less desirable to assume that debt over other types of marital debt that will be divided in your divorce. Though there are more cases than ever on record, court decisions are not entirely consistent on the division of student loan debt.

Is it bad to have student loan debt?

Student loans and marriage can be a tough combination, especially for engaged or newlywed couples. Student loan payments can add extra stress and costs that make it harder to save for your future together. In fact, one study found that 21% of student loan borrowers say they’ve delayed marriage due to student debt. 1.

If your marriage ends soon after graduation, a student loan is more likely to be considered separate debt. But, if the loan made possible a substantial income from which both spouses benefitted over many years, there’s a better case for considering it to be marital debt.

Can a person be responsible for their spouses student loans?

Marrying someone with student loan debt won’t make you liable for their loans. No. Student debt that you bring into a marriage remains your debt. Let’s say you have $30,000 in federal student loans and $40,000 in private student loans when you get married. Your spouse might help pay down your debt, but you’re the only one legally responsible.

What happens to your student loan debt after a divorce?

This is not always the case. Legally, any student loan debt you incurred before getting married is considered separate property and remains so after the divorce (with the exception of a prenup stating otherwise). So if you borrowed $70,000 to attend law school before marrying your spouse, that debt is yours.

Fortunately, the answer is no—at least, not when it comes to the legal responsibility for the debt in marriage . Debt that exists before a couple gets married, including student loans, is “individual property” and remains the sole responsibility of the partner who initially borrowed it.