SederLaw
WORCESTER 508-471-3018
Metro West 508-709-0024

How do Massachusetts' divorcing couples split student loans?

Student loans have become a major financial burden for individuals across America, including those in Massachusetts. In fact, in 2012, bachelor degree earners averaged $29,400 in debt upon graduation. Many individuals considering divorce may be concerned about how this debt will be divided when a marriage is dissolved. Hopefully this post will help clear up some common misconceptions.

A lot of people think that student loan debt accumulated prior to a marriage becomes shared once a couple gets married. This is not the case. Typically, student loan debt incurred in an individual capacity and prior to a marriage is considered separate property and is therefore not subject to debt division in a divorce proceeding. A prenuptial or postnuptial agreement, however, can specify how pre-marriage, individually acquired educational debt will be divided in the event of divorce.

Student loans taken out during a marriage are handled differently. Sometimes during the divorce process loan repayments are divided according to which spouse has the best ability to pay. In other words, a high income ex-spouse may have to pay spousal support to help a lower income ex-spouse who incurred student loan debt. In some instances, an earned degree is treated as marital property, meaning its value may be subject to asset division during the divorce process. The degree earner may have to pay the other spouse for time he or she spent supporting the degree earner in his or her educational pursuits.

The division of marital property and debts can be extremely complicated. In order to ensure his or her best interests are protected, a divorcing party may want to seek help from a Worcester Divorce Lawyer. With an advocate by his or her side, a divorcing party can feel more at ease that a fair and favorable outcome may be reached.

Source: The Wall Street Journal, "Who Is Responsible for the Student Loans After Divorce?" Charlie Wells, April 13, 2014

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us Today To Learn More

The skilled attorneys at SederLaw stand ready to handle even your most difficult legal issues. Turn to us for skilled representation to help you accomplish your legal goals.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

An Impressive Track Record
Of Achievement In The Law

SederLaw

Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-709-0024
Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions

Metro West Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-709-0024
Fax: 508-831-0955
Map & Directions