Is Student Debt shared in divorce?

Debt obtained after the marriage is typically regarded as shared debt and will be divided during the property division process. If student loan debt is determined to be marital debt, then it will likely be divided between both parties.

What happens to student loans during a divorce?

If you already had student loans when you got married, those would remain your individual responsibility after the divorce, unless both parties agree to a different arrangement. In an equitable distribution state, the judge in the divorce court will decide who is responsible for repaying the student loans.

What happens to student loans if you divorce?

Let’s say you went to grad school while you were married and took out $20,000 in private student loans. If you get divorced, your spouse may be required to pay back 50% of the remaining balance. This may also apply if you got married in an equitable distribution state, but now live in a community property state.

How does a divorced parent pay for a child’s College?

Only the parent who borrowed the Parent PLUS loan is required to repay it. You and your ex-husband can each individually borrow from the Parent PLUS loan program to pay for your share of college costs, per the regulations at 34 CFR 682

Who is responsible for student loans after divorce?

To understand who takes responsibility for these debts post-divorce, you’ll need to know your state’s laws. In most states, if your name is on the loan, you’ll be responsible for continuing to make student loan payments after you’ve separated. If your spouse is on the loan, he or she will.

Can you put College in a divorce decree?

“I got divorced in Maine, so there is no law to support putting paying for college in a divorce decree. In Maine, once the child is 18 they are on their own.”

Can you pay for your ex’s college education?

One of the trickiest aspects of paying for college with an ex is navigating a tumultuous relationship. “Don’t underestimate these factors when it comes to asking a parent to pay hundreds of thousands of dollars for college educations,” Meerschaert said.

How are divorced parents supposed to pay for college?

The amount each parent is expected to contribute and other details are then determined by the judge and outlined in a court order. Most states allow parents who are divorcing to work out a voluntary college support agreement. This is a contract in which the divorcees agree on responsibility for college costs and details of payment.

How is student loan debt divided in a marriage?

The division of student loan debt becomes a bit trickier if the loans were obtained during the marriage. In some cases, the spouse who has the student loan debt isn’t necessarily the one who’s the breadwinner or makes the loan payments.