Debts often need to be divided during a divorce. People often think about their assets first, which is natural. But they also have to split up things like shared credit card debt, car loans or even the balance of a home mortgage. This is why a lot of couples simply sell the house, so that they can pay off the mortgage and keep any remaining money from that sale.
But what about student loans? These can get a bit more complicated because it often depends on when they were taken out.
Loans from before the marriage
Often, married couples will each have loans that they took out, but they did so years before they ever got married. These are often treated as separate debts. The person who took them out is still responsible for paying them back, but their spouse does not have to split those debts or take on any responsibility themselves, even after the divorce.
Loans from during the marriage
Where things get complex is if the couple took out loans while they were already married. These may qualify as joint financial obligations, especially if shared funds were used to make monthly payments. If the debt is considered to be shared, then it does have to be divided, even though only one of the people was actually attending college.
Another thing to look for is if the spouse who was not attending school co-signed on the loan. That gives them equal responsibility for that debt, despite the fact that they are not a student.
Splitting up debts and assets
When going through property division, it is important for couples to consider both assets and debts. When this process gets complicated, it is crucial that they understand exactly what legal steps to take.