Family Law Blog

Student Loans and Divorce

Thursday, April 10, 2014

Most young students now graduate with thousands of dollars in debt, and there may be important questions about who's responsible for paying off those loans in the event of a divorce.

The question of who is responsible for student loans is critical in light of the fact that in 2012, college students, who graduated with bachelor's degrees, graduated with approximately $29,400 in school loans. The average debt is much higher in the case of students earning advanced degrees. In a marriage where both partners have student debt, the accumulated debt is bound to be hefty.

For the most part, your student loan is yours alone, and your spouse will not be liable for it in the event of divorce. If the student loan was taken out while you were single, the loan remains yours alone to repay, which means that you may be in for a nasty surprise when you get divorced, and have to go back to living the single life again. Those monthly payments that you make will become burdensome when you take into account your daily household living expenses, including rent, groceries, utilities and other expenses that may have been shared when you were part of a marital relationship. That's why it's vital that you make a complete analysis of all your potential monthly expenses during the proceedings, as soon as you make the decision to file.

If the student loan was taken out while you were in a marital relationship, things may be a little different. You will still be responsible for your own student loan, but there may be exceptions. California is a community property state, and debts that are incurred during a marriage may be considered joint debt. However, exceptions are typically made in the case of student loans, barring some cases, depending on when the loan was taken out and other factors.