Divorce involves dividing many types of assets and debts, including student loans. Whether student loans count as marital property depends on several factors, including when someone took out the loan and how they used it.
Timing of the student loan
Courts often consider when someone took out the student loan to determine if it qualifies as marital debt. If the student loan existed before the marriage, it usually counts as separate debt and remains the responsibility of the person who took it out. However, loans acquired during the marriage may count as marital debt.
State laws play a role
Alabama follows equitable distribution laws, which means courts divide marital assets and debts based on what is fair rather than equal. Student loans taken out during the marriage may be considered marital debt, but the court will determine a fair division depending on the specific circumstances of each case.
How the loan was used
Courts also consider how someone used the student loan funds. If the loan went solely toward the student’s education, the court may decide that person must pay it. However, if the loan also covered household expenses or benefited both spouses, it may count as marital debt and require sharing between both parties.
Other considerations
Each couple’s situation is unique, and many factors can influence how courts divide student loans. Courts may look at each spouse’s ability to pay, the benefits received from the education, and each person’s overall financial situation. An experienced family law attorney can provide guidance specific to each case and state laws.
Understanding how courts classify student loans can help with financial decisions during a divorce. The specifics of each situation will play a large role in determining how to divide debts.