Who is responsible for student loan debt in divorce?

Legally, any student loan debt you incurred before getting married is considered separate property and remains so after the divorce (with the exception of a prenup stating otherwise). So if you borrowed $70,000 to attend law school before marrying your spouse, that debt is yours.

Will you be responsible for your spouse’s student loans after a divorce?

Most private student loans require co-signers. If your spouse co-signed a private student loan for you during your marriage, then he or she is legally responsible for the debt as well, even after divorce.

Who pays for student loans in a divorce?

Student loans and parent loans borrowed during a marriage are considered to be the joint responsibility of the spouses if they lived in a community property state. Student loans and parent loans borrowed before a marriage or after legal separation or divorce remain the separate responsibility of the borrower.

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Are Student Loans considered marital debt?

Any new student loans either of you took on after getting married are considered marital debt. And each state has its own way to treat student loans in divorce.

Can a spouse’s wages be garnished for student loans?

The answer is yes. Your student loan creditors can garnish your spouse’s wages to recover the amount of your defaulted student loan. You don’t mention whether the loan was incurred before or after marriage. Unfortunately, it doesn’t matter.

Is husband liable for wife’s student loan?

Marrying someone with student loan debt won’t make you liable for their loans. No. Student debt that you bring into a marriage remains your debt. … Your spouse might help pay down your debt, but you’re the only one legally responsible.

Is my spouse liable for my student loan debt if I die?

If the student loan is a federally backed education loan, a spouse is safe from repayment liability. According to the U.S. Department of Education, if the borrower of a federal student loan dies, the loan is automatically canceled and the debt is discharged by the government.

How is debt split in a divorce?

As part of the divorce judgment, the court will divide the couple’s debts and assets. The court will indicate which party is responsible for paying which bills while dividing property and money. Generally, the court tries to divide assets and debts equally; however, they can also be used to balance one another.

Should I pay off my wife’s student loans?

If your partner can help you pay more each month this could help reduce the principal balance of the loan. … So even though your student loans are your own, tackling them together could make good financial sense in the long term.

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How do I apply for student loan forgiveness?

How to Apply For Forgiveness. Contact your loan servicer if you think you qualify. If you have a Perkins Loan, you should contact the school that made the loan or the loan servicer the school has designated.

What happens when you marry someone with student loan debt?

Student loan debt that your spouse incurred before you’re married will almost never be considered your liability. … While you won’t be held legally liable for your spouse’s prior student loan debt in most cases, you may still decide to take on some responsibility for your spouse’s debt repayment.

What happens to student loans when you marry?

Your Payments May Go Up—or Down

If you are married and file your taxes jointly–which the vast majority of couples do–your payment will be based on your combined adjusted gross income (AGI). So if getting married means you’ll have a higher AGI, your student loan payments are likely to go up.

Is spouse responsible for student loan debt incurred before marriage?

A spouse is typically not responsible for student loan debt incurred before marriage. And that’s usually true even if they live in community property states. … It can also change if you refinance the student loan debt, and you or your spouse act as a cosigner on the debt.

Can the IRS take my refund if my husband owes student loans?

If you’re married and you file taxes jointly, the IRS may take your entire tax refund regardless of whether your spouse has any student loan debt of their own. However, it may be possible to get your spouse’s portion of the refund returned to them if you file an injured spouse claim form (IRS form 8379).

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What happens if you die with student loans?

What happens to your federal loan debt. If you die, your federal student loans will be discharged, meaning no further payments will be required. Your parent, spouse or another person you appoint will need to submit proof of death to your loan servicer. This means an original or copy of the death certificate.

How long do student loans stay on your credit report?

Student loans that you have defaulted on or are delinquent on are going to stay on your credit report for seven years from the original delinquency date of the debt.

After Divorce