You know that you and your spouse have to split up your debts during divorce. Perhaps the two of you have a joint credit card account, for example. You’re both liable for the charges on that account, so you have to divide your debt along with your assets.
But what about loans that were taken out directly to benefit only one person? For example, perhaps your spouse is in school and has significant student loan debt. You believe that they should just keep the debt with them after the divorce and that you shouldn’t have any obligation to pay. Your spouse believes that the debt should be divided between the two of you, just like credit card debt. Who is correct?
When were the student loans taken out?
The timing of the student loans is perhaps the most important factor. If your spouse took out those loans before the two of you got married, then they are likely a separate debt and do not need to be divided between both of you. Perhaps the two of you met in college, where you were on a full-ride scholarship, but your spouse was using student loans. If you get divorced, they brought that debt to the marriage, so they also take it with them.
However, maybe you got married and then your spouse took out the student loans. Perhaps they decided to go back to school and get a master’s degree after your wedding. In a case like that, even though the loans are for their education and not yours, they could still be considered marital debt. The two of you agreed to enter into that debt as a couple. This would mean that it does need to be divided, and you could be responsible for paying off a portion of the loans even after the divorce.
Financial issues like this can become complex, so make sure you know exactly what legal steps to take.