How Are Student Loans Divided During Divorce?

The cost of a college or university education has risen significantly in the past few decades. While student loans have helped many people obtain the education they need to better their life, the debt can remain with a person long after graduation. According to Forbes, the average student debt loan is worth just under $29,000 and over half of students who graduated from four-year programs had student loans. Whether you went to school years ago, or you are still attending, you may wonder how your student loan debt will be divided. Below, our Delaware County property division lawyer explains further.

Are Student Loans Marital or Separate Property? 

Pennsylvania is an equitable distribution state. This means that any marital property is divided fairly, which does not necessarily mean each spouse will receive half of the property, during divorce. Marital property includes any assets and liabilities, such as student loans, that were acquired by one or both spouses during the marriage. Separate property includes any assets or debts acquired by one person before the marriage.

As such, only student loans that were acquired during the marriage are subject to division in divorce. Many people today are putting off getting married until they have obtained an education and are well into their career. In these cases, a person would still likely be entirely liable for their debt if they incurred it before they got married.

On the other hand, many spouses are still staying home to raise the children and maintain the household. Once the children get older, these spouses may decide to obtain an education to further their career. In these instances, both spouses may be liable for any student loan debt obtained because it was acquired during the marriage.

Factors Considered When Dividing Student Loan Debt 

Ideally, both spouses can agree how to divide student loan debt. If the two parties are unable to reach an agreement, a family law judge will make the final decision. A judge will take many factors into consideration when deciding how to divide the debt. These include:

• The income of each spouse,
• The ability of the borrowing spouse to repay their student loans on their own,
• Any contributions the non-borrowing spouse made to support the student spouse, and
• The extent to which the non-borrowing spouse benefitted from the borrowing spouse’s education.

As with most other family law issues, a judge also has the discretion to consider any other factor they deem relevant. For example, if one spouse incurred significant student loan debt but rarely attended school and did not make a real effort to do well, a judge may hold them liable for the entirety of the student loan.

Our Property Division Lawyer in Delaware County Can Help with Your Case 

Property division is always one of the most contentious aspects of any divorce case. At Barbara Flum Stein & Associates, our Delaware County property division lawyer can advise on the facts of your case and help you obtain the fair settlement you deserve. Call us now at 610-565-6100 or chat with us online to schedule a review of your case and to get the legal help you need.

Sources:

legis.state.pa.us/WU01/LI/LI/CT/HTM/23/00.035..HTM

forbes.com/advisor/student-loans/average-student-loan-debt-statistics/