Serving Central Ohio Since 1983

Paying off student loans after divorce

On Behalf of | Nov 21, 2016 | Divorce

If an Ohio resident takes out a student loan after getting married, it is possible that the debt will be considered shared marital property if the two divorce. However, if the loan is from before the marriage, it will probably remain the responsibility of the person who incurred it.

Some couples who got married prior to 2006 consolidated their student loans because it gave them a lower interest rate. However, if they now get a divorce, then the loans may be considered the responsibility of both of them, and if one spouse does not pay their share, the other will be responsible for it. Couples should discuss their current and prospective student loan debts with one another before they get married, and they might want to create a prenuptial agreement that makes a plan for dealing with them in case of divorce.

Before heading into a divorce, a couple should understand the financial implications. How much debt each person will become responsible for will depend upon their individual situation and the final divorce agreement.

For example, if a couple decides to try to negotiate an agreement with the assistance of their respective attorneys instead of turning to a judge, the one who incurred the student loan debts might take those on while the other spouse might take on a credit card debt they are primarily responsible for. However, it is not always possible to make an amicable agreement like this, and in some cases, a person might have to pay part of their former spouse’s student loan debt as part of the divorce agreement. People might want to talk to their attorneys about their concerns regarding financial security after the divorce and how they can best safeguard it. Some people might feel guilty about the divorce and feel pressured to make financial concessions as a result, and an attorney might be able to provide guidance in this situation.