For those with significant assets in a Texas divorce, many issues can arise. Property division is a common concern. This includes not only assets but also debt. One key concern in the current climate is whether there is outstanding student loan debt.
There are certain facts to understand about student loan debt during a divorce. If the student loan debt or any debt in general was accrued prior to the marriage, then it is the responsibility of the person who took out the loan. If it was accrued after the marriage, it will be marital debt. Courts will take into account how the money was utilized, whether the spouse played a role in the student debt, how much money each party earned during the marriage, if the student got a degree and if the loan was co-signed by the non-student spouse.
If the loan paid for costs associated with the education, it would generally be the responsibility of the student. If, however, it also helped pay for marital expenditures, it may be community property. The spouse who did not attend school could have played a role by helping with transportation or running the home. That person would likely not be responsible for the debt. If the spouse who did not attend school earned a low income, he or she might not be obligated to pay the debt.
Earning a degree could be seen as marital property and the debt as marital debt. The spouse co-signing for the student loan will mean that he or she is legally responsible for it, divorce or not. In a divorce where any type of property and debt division is in dispute, it is wise to have legal advice. A law firm with experience in divorce may be able to help.