Who Pays Students Loans After a Divorce in California?
As of 2023, 43.5 million Americans owe more than $1.6 trillion in student loan debt. If you are going through a divorce in California, there is a good chance you are still paying off your student loans. But how is this debt handled in a divorce? Could you be required to help pay off your ex’s student loans – even after the marriage is over? Could your ex be liable to pay off your student loans? These questions are becoming increasingly common as student debt gets higher and higher in California.
The Basics of Property Division in California
California is a community property state, which means that all marital property is typically divided in a 50/50 manner. However, this only applies to marital property and not to “separate” property. Assets and debts acquired before or after the marriage are considered separate and are not eligible for division. This means that if you got a student loan before the marriage, it is your responsibility to pay off the debt – and yours alone.
Student Debt is Handled Differently in California
You might assume that if you got a student loan during your marriage, this debt would be divided in a 50/50 manner according to the community property system. But this is not the case. According to California Family Code Section 2641, the state recognizes that student loans only benefit the person who obtained this debt. As a result, only the spouse who obtained the loan will be required to pay it – even if the loan was taken out during the marriage. In other words, student loans represent a notable exception in the usual classification of separate and marital property.
Spouses May Still Be Required to Pay Each Other’s Student Loans
That being said, spouses may be liable for their exes’ student loans under certain circumstances:
- Both spouses benefitted from a single loan
- One spouse contributed to the other’s education or training in a way that offsets the loan
- The education provided by the loan reduces a spouse’s need for spousal support
In the end, it is best to speak with an attorney if you are wondering how your student loans will be handled during your divorce. Each situation is slightly different, and only a face-to-face consultation will provide you with personalized information. On the other hand, internet research can only provide you with so much information and guidance.
Where Can I Find an Experienced Family Law Attorney in California?
If you have been searching for an experienced family law attorney in California, look no further than Knez Law Group, LLP. Over the years, we have helped numerous divorcing spouses in the Golden State, including those with student loan debt. We know that debts can be just as difficult to divide as assets when ending a marriage, and we will help you approach this situation with confidence. Book your consultation as soon as possible to get started with an effective action plan.
Andrew J. Knez earned his Bachelor of Arts degrees in Political Science and Criminal Justice from California State University, Fullerton. During his college years, he was a member of the Pi Kappa Phi Fraternity and interned at the College Legal Clinic, where he assisted underprivileged communities in obtaining affordable legal services. Mr. Knez credits this experience with fostering his appreciation for the law and its positive impact on society. Additionally, during college, Mr. Knez worked as a paralegal, gaining hands-on experience in civil litigation. Learn more here.