Filing for divorce can be an emotionally draining experience. Individuals who go through a divorce need to focus on their financial future, the division of assets, custody rights, and other aspects of divorce. On top of that, there is the added stress associated with student loans and divorce. Dealing with student loans can be complicated and may require extensive legal knowledge and negotiation skills. If you are about to file for divorce or are already in the middle of divorce proceedings involving student loan debt, consider speaking with an experienced divorce attorney to guide you through the property division process. Our skilled divorce attorneys at Johnson Law Group are familiar with how student loans are handled in divorce cases in Colorado. Call (720) 463-4333 or text our office at (720) 730-4558.
Determining who gets what and who is responsible for what can be challenging, especially when a divorce involves student loan debt. According to Education Data Initiative, student loan debt in the United States totals a staggering $1.75 trillion. Over 43 million borrowers across the country owe an average of nearly $40,000 in student loan debt each. Spouses’ responsibility for repaying student loans depends on the following factors:
Going through a divorce always involves untangling finances and dividing assets and debts. However, the divorce process can become even more complicated when one or both spouses have student loan debt.
When getting a divorce with any amount of student loan debt, the parties might wonder who will be responsible for repaying the debt after the dissolution of marriage. If only one spouse owes student loan debt, will the court divide the debt between both spouses in a divorce? The responsibility to pay student loan debt depends on when the debt was acquired. Any debt acquired before the marriage remains in the name of the spouse who took the student loan.
The division of student loan debt acquired after the parties get married is more legally challenging and complicated. Any assets or debts acquired in the course of a marriage is considered marital or community property. What happens to marital debts in the event of divorce depends on whether the parties are seeking a divorce in an equitable distribution or community property state.
In states with community property laws, marital assets and debts are divided equally between the divorcing spouses. However, the vast majority of states, including Colorado (C.R.S. § 14-10-113(2)), adopted equitable distribution laws, which means marital property and debts are split in an equitable and fair manner. Consider contacting a Denver divorce attorney at Johnson Law Group to talk about the division of student loan debt and other debts in your particular case.
In equitable distribution states, courts consider a number of factors when determining the fairest and most equitable way to divide assets and debts, including student loans. Some of the factors considered by judges include:
Student loans and divorce can be complicated, which is why divorcing couples need to understand possible ways to deal with student loan debts to avoid unnecessary disputes and issues during divorce proceedings. Some of the most common ways of dealing with student loan debt in a divorce include:
Failure to reach an agreement regarding the division of student loan debt can lead to disputes, resulting in the added stress, costs, and time.
If you or your spouse has incurred a significant amount of student loan debt, you might wonder, “Who will be responsible for repaying the debt in the event of divorce?” Consider consulting with a knowledgeable attorney who knows how to handle the division of student loan debts in divorce proceedings.
At Johnson Law Group, our skilled and results-driven divorce attorneys are prepared to help you understand ways to resolve your disputes with the spouse regarding the division of marital assets and debt. We have extensive experience in helping clients develop creative solutions to resolve disputes regarding student loan debt. Obtain a case review with our attorneys to discuss student loans and divorce in your specific case. You can either call our office at (720) 463-4333 or send us a text at (720) 730-4558.