College has become significantly more expensive over time. While students years ago could pay their own way through college, student loans have become necessary for the vast majority of college students.
Thankfully, student loans are readily accessible even to young adults who do not yet have a reliable source of income. Many successful professionals have to take on tens of thousands of dollars in debt in their pursuit of a degree and employment opportunities.
Those debts often require decades to pay off in full even after beginning a career. Married individuals with student loans may find that their financial obligations put strain on their relationships. They may worry about what happens with those obligations when they divorce.
How might student loans impact property division proceedings?
Every marital estate is unique
The assets and debts accumulated during a marriage become the marital estate. Spouses typically have to find fair and reasonable ways to address the marital estate through mutual agreements. If they don’t reach an agreement, then the matter may go to family court. A judge finds an equitable way to split property and debt.
People may assume that certain marital debts are separate property, especially when they are in the name of only one spouse. Student loans are often in the name of one spouse, but they could still represent shared responsibility. In cases where the other spouse acted as a cosigner, it is obvious that they have shared responsibility for the student loans.
Even if the loan is only in the name of one spouse, the loan may be part of the marital estate if one spouse took on the debt during the marriage. The spouses may need to share responsibility for the student loans. They may need to offset the amount of debt with other financial obligations or marital property.
In some cases, the courts can even order the payment of student loans as part of a spousal support or alimony arrangement. Those hoping to secure a specific outcome when addressing student loans as part of an upcoming divorce may need support exploring their options.
Conducting a thorough review of marital finances with a skilled legal team and learning the basics of the rules that apply during divorce can help spouses prepare for negotiations or develop an appropriate plan. Those dealing with sizable student loans may need to consider those financial obligations carefully as they prepare for property division proceedings.
