If you’re getting divorced, you and your spouse are likely reviewing all of your marital assets and deciding how to divide them. With simpler assets, like home furnishings, you may just split them up. With higher-value assets, such as a jointly owned home, you might sell the property and divide the proceeds.
But it’s important to remember that debts also need to be addressed. Like assets, debts often have to be divided. For example, if you have a joint credit card account, both spouses are typically responsible for it.
But what about student loans? For many young couples, these are among the most significant debts they face. Do student loans have to be divided if only one person went to school?
Timing plays a major role
There are cases where student loans remain the sole responsibility of the individual borrower, and others where the debt may be shared between spouses. Much of it depends on the timing of when the loan was taken out.
For example, if one spouse took out the student loan before the marriage, it is generally considered separate debt—and that person is usually solely responsible for it after the divorce. However, if the loan was taken out during the marriage—especially if both spouses co-signed or agreed to support one person’s return to school—it may be treated as marital debt. In that case, both individuals could be held responsible for repayment, even if only one attended classes.
The financial aspects of divorce can become complex and contentious, especially when it comes to significant debts like student loans. That’s why it’s important to fully understand your legal options.
