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Factors that determine who pays student loans after a divorce

On Behalf of | May 11, 2020 | Divorce

Education often leads to higher incomes for people in Montgomery, Alabama. For this reason, you or your spouse may have taken out student loans to pursue a career. Among married couples, the question of who bears responsibility for paying student loan debts can become an issue if they choose to end their marriage. Divorce requires the division of marital assets and debts. Timing and cosigning are two factors that direct whether one or both parties are responsible for the debt.

Student loans acquired prior to marriage

If you took out a student loan before getting married, then it would not be a marital debt that imposes liability for payment on a future spouse. Similarly, a student loan given to your spouse before marriage should remain that person’s responsibility.

Student loans after marriage

The name on the loan document determines who must pay it back even if you received the loan during your marriage. Therefore, if the student loan is only in your name, then you are the one who the creditor will look to for payment after the divorce.

However, if both of your names are on the loan documents, then you and your former spouse share responsibility for payment. As a shared debt, you botj must make a plan together for paying it back.

Cosigning student loans

Student loans generated by private lenders typically require someone to cosign for the primary borrower. If you cosigned on a spouse’s student loan or vice versa, then the lender may pursue both parties for payment.

Get answers about student loan debt liability

Nearly 45 million people nationwide owe student loan debts, and attorneys frequently provide guidance about their assignment within a divorce settlement. Responsibility for student loans may concern you if your marriage appears likely to dissolve. The question of how much debt could remain your responsibility will matter as you plan a budget for your post-divorce life.


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