In general, student loans acquired before marriage are considered separate debt, while loans incurred during the marriage are considered marital debt.
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When it comes to divorce and dividing assets, one important factor to consider is debt. Student loans are a form of debt that many couples may have to deal with during a divorce. The answer to whether student loans count as marital debt is not so simple – it depends on when the loans were acquired.
In general, student loans acquired before marriage are considered separate debt, while loans incurred during the marriage are considered marital debt. This means that a spouse is not responsible for the other spouse’s student loans that they had before they got married. However, any loans that were taken out during the marriage are considered joint debts, and both parties may be responsible for paying them off.
As Forbes contributor Jeff Landers explains, “The division of student loans during a divorce can get tricky because all of it depends on the individual situation and the laws in the state where you live.” Factors that may come into play include whether the loans were taken out for education during the marriage, who received the education, and how much each party contributed financially to the education.
It’s also worth noting that even if student loans are considered separate debt, they can still have an impact on the division of assets. This is because if one spouse has a large student loan debt, it may affect their ability to contribute to other joint debts or expenses, such as a mortgage or child support payments.
Here are a few interesting facts about student loan debt in the United States:
- As of the first quarter of 2021, Americans collectively owed over $1.7 trillion in student loan debt.
- The average student loan borrower owes $32,731 in student loans.
- Women hold two-thirds of all student debt in the United States.
- Student loan forgiveness has become a major topic of discussion in recent years, with some lawmakers proposing to cancel a portion or all of the country’s student loan debt.
Here is a table summarizing how student loans are generally treated in a divorce:
| Type of Student Loan Debt | How it’s Treated in a Divorce |
|---|---|
| Loans acquired before marriage | Considered separate debt |
| Loans acquired during marriage | Considered marital debt and may be split between both parties |
In conclusion, student loans can be a tricky issue to navigate during a divorce, especially if one or both parties have significant debt. It’s important to understand how student loan debt is generally treated in your state and to work with a qualified attorney to ensure that your rights and financial interests are protected.
Video response
Danielle Davis of Burnham Law discusses whether someone is responsible for their spouse’s student loan debt after a divorce. Davis suggests reviewing the marital agreement and contacting a lawyer if necessary to determine whether student loans are included. She then explains how to decide whether the student loan is marital or separate debt, noting that the default assumption is that it is marital debt and subject to division. Equity determines who pays the debt, and judges consider various factors, such as when the education occurred and whether both parties benefited from it. In some cases, the person who took out the loan may be held responsible for repaying it.
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What Happens to Student Loan Debt in Divorce? Student loans you and your partner bring into the marriage are considered personal debt that you each have to pay back once divorced.
Any new student loans either of you took on after getting married are considered marital debt.
So, are student loans considered marital debt? The simple answer is yes, but there is a lot that can complicate that answer – and understanding all of it will help you determine your individual responsibility for repayment.
Any debt incurred while obtaining what’s considered marital property is most always categorized as marital debt. This means the student loan debt divorce agreement would deem both spouses responsible for repayment.
Loans taken out after you were married are typically considered marital debt and will be split equitably if you divorce. If you live in a community property state, the debt is split in half, and you’ll share responsibility for repaying the loans.
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People also ask, Will my spouse be responsible for my student loans if I get married?
Debt you bring into a marriage typically remains your own, but loans taken out while married can be subject to state property rules in divorce. And if one spouse co-signs the other’s private student loan, he or she is legally bound to the loan unless you can obtain a co-signer release from the lender.
What happens if you get married and have student loans?
The reply will be: Is a Spouse Legally Responsible for Student Loan Debt? No, an individual is not legally responsible for their spouse’s student loan debt. If you marry someone with student loan debt, that debt is their liability as it is contracted in their name, not yours. This applies to both federal and private student loans.
Can student loans garnish spouses wages? Response will be: Your spouse’s wages can’t be garnished for your student loan debt. Neither the federal government nor a private lender can garnish your spouse’s paycheck to collect defaulted student loans — even if you live in a community property state like Arizona or Texas.
Similarly one may ask, Am I responsible for my wife’s student loans if we divorce?
Each spouse is responsible for paying back student loan debt they took out before the marriage. However, debt incurred during the marriage may be divided up based on factors like your marriage length, income and who benefited from the loans.
Is a student loan considered marital debt?
The answer is: 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. What is the earning power of each spouse?
Subsequently, What happens to student loans if you divorce?
When you divorce, any student loan that’s you took on before you got married will remain yours — the same goes for your former spouse’s debt. • Debt after marriage is considered marital debt. But if you or your spouse took on new student loans or refinanced a loan while you were married, ownership of that debt gets more complicated in a divorce.
Herein, Are You responsible for student loans your spouse took out after marriage?
Response: Whether you’re responsible for student loans your spouse took out after you got married is dependent on where you live. In most states, debt taken out during the marriage is the responsibility only of the person who is on the loan agreement.
Also asked, What percentage of married couples have student loans?
The answer is: According to the Federal Reserve Bank of St. Louis, 46% of young married couples had student loan debt in 2016, triple the share of couples that had student loans in 1989. What happens to student loans when you get married depends on when you took out the loans and where you live.
Additionally, Is a student loan considered marital debt? Response to this: 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. What is the earning power of each spouse?
Also question is, What happens to student loans if you divorce? The response is: When you divorce, any student loan that’s you took on before you got married will remain yours — the same goes for your former spouse’s debt. • Debt after marriage is considered marital debt. But if you or your spouse took on new student loans or refinanced a loan while you were married, ownership of that debt gets more complicated in a divorce.
In respect to this, Are You responsible for student loans your spouse took out after marriage?
Response: Whether you’re responsible for student loans your spouse took out after you got married is dependent on where you live. In most states, debt taken out during the marriage is the responsibility only of the person who is on the loan agreement.
Moreover, What percentage of married couples have student loans?
Response will be: According to the Federal Reserve Bank of St. Louis, 46% of young married couples had student loan debt in 2016, triple the share of couples that had student loans in 1989. What happens to student loans when you get married depends on when you took out the loans and where you live.