Is a student loan debt a marital debt or a separate debt in a virginia divorce?

Malvina Beer asked a question: Is a student loan debt a marital debt or a separate debt in a virginia divorce?
Asked By: Malvina Beer
Date created: Sat, Jul 10, 2021 8:56 AM

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Those who are looking for an answer to the question «Is a student loan debt a marital debt or a separate debt in a virginia divorce?» often ask the following questions:

✔️ Student loan debt: separate or marital debt?

If you are one of them, or your spouse is, you might be wondering what happens to that student loan debt when you part ways. The answer, as with many issues in divorce, depends on the circumstances. The good news for a spouse who does not want to be saddled with the other spouse’s student loan debt is that that debt is often incurred before marriage, making it the other spouse’s separate debt. Student Loan Debt: Separate or Marital Debt?

✔️ Is student loan debt marital debt?

So, are student loans considered marital debt? The simple answer is yes, but there is a lot that can complicate that answer – and understanding all of it will help you determine your individual responsibility for repayment.

✔️ Is student loan marital debt?

Any new student loans either of you took on after getting married are considered marital debt. And each state has its own way to treat student loans in divorce.

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Instead, the student loan debt was used to finance the husband’s education and pay some living expenses. So the student loan debt was clearly marital debt under Va. Code § 20-107.3(A)(5). Nevertheless, the court looked at Va. Code § 20-107.3(E) in determining whether the student loan debt was marital or separate debt.

§ 20-107.3 affords Virginia courts the authority to apportion and order the parties to a divorce proceeding, one or both of them, to make payments towards their joint or separate debts. These debts include student loans acquired by one or both parties during the course of the marriage.

Student Loan Debt in Divorce. If the student loan debt was incurred prior to the marriage, the spouse that took on the debt will most likely be responsible for paying it off. The debt is a separate property that was brought into the marriage by one spouse, and as such, that spouse will take that debt with him or her when the marriage is over. All separate property during Virginia divorces, both assets and debts, remain with the spouse that brought the property to the marriage.

For instance, if you and your spouse took out a home equity loan on your marital home and used $20,000 of the proceeds to pay off your spouse’s student loan, the home equity loan would be the responsibility of both of you, even though it was used for the previously-separate student loan debt belonging to one.

In dividing student loan debt during divorce, the key question is not who incurred the debt, but who benefitted from it. If your marriage ends soon after graduation, a student loan is more likely...

Similarly, any debts incurred during the marriage, including student loans and parent loans, are the married couple’s joint responsibility, even if only one of the spouses benefited from the debts. This is in contrast with separate property and separate debt which was acquired or borrowed before the marriage or after the divorce or separation.

The more the couple benefited from the education, the more likely the court will deem the student loan to be marital debt. To determine whether student debt is separate or marital, the court may look at how the loan money was used. For example, if the couple divorced while one spouse was still in school—or directly after graduation—a judge is more likely to characterize student loans as the separate debt of the spouse who borrowed the funds.

Divorce does not allow you an escape clause from debt, so just as the two of you will split up assets, you will split up obligations, as well. Yes, Virginia, There is a Debt The Code of Virginia is the law of the Old Dominion, and under §20-107.3, with the catchy title, “Court may decree as to property and debts of the parties,” we find this whammy:

Fortunately, the answer is no—at least, not when it comes to the legal responsibility for the debt in marriage. Debt that exists before a couple gets married, including student loans, is “individual property” and remains the sole responsibility of the partner who initially borrowed it.

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The smaller the benefit the wife received from the husband’s degree, however, the more likely it is that the judge will assign the lion’s share of the student loan debt to the husband. If you have additional questions about how a divorce court in your jurisdiction may treat your student loan debt, contact a local family law attorney for advice.

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Can Student Loans Be Allocated Unequally? Yes. Colorado law provides that marital debts must be allocated equitably, not necessarily equally. This means the division must be fair.

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Are student loans marital debt in Florida? Florida Statute 61.075 (1) does not distinguish between student loans and other liabilities as a standalone non-marital debt. There is no such distinction allocated to student loan debts. Call the Jacobs Law Firm at 407-310-5636.

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Illinois law requires the equitable distribution of marital property in a divorce, meaning that student loan debt will not necessarily be divided in half, but will be distributed fairly according to factors that apply in a case.

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If the student loan debt was incurred during the marriage, the Court can divide the debt between the spouses as part of the property division. In Minnesota, Courts do not necessarily divide property equally. Rather, Courts award a just and equitable division of property. This means that the student loan debt, other assets and liabilities will ...

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North Carolina case law classifying student loans have ruled both ways as to when student loans created a “joint benefit” to the parties. Thus any examination of when student loan debt is marital debt in North Carolina is fact determinative and open to interpretation by the Judge.

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Are student loans marital debt in ohio?

Marital property is divisible between parting spouses upon divorce under Ohio’s equitable distribution laws. That may not mean your student loan debt will be shared. Some Columbus spouses may not know that student loan debt, more often than not, remains the responsibility of the debt originator.

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How is student loan debt divided in divorce?

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Illinois divorce: how is student loan debt divided?

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Illinois law follows an equitable manner of asset distribution, rather than an equal manner. This means that student loan debt will not always be split in half or assigned to just the spouse who incurred the debt but rather assigned to each spouse.

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Is student loan debt split in a divorce?

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Debt obtained after the marriage is typically regarded as shared debt and will be divided during the property division process. If student loan debt is determined to be marital debt, then it will likely be divided between both parties.

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Can student loan debt be split in a divorce?

Debt obtained after the marriage is typically regarded as shared debt and will be divided during the property division process. If student loan debt is determined to be marital debt, then it will likely be divided between both parties.

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Does student loan debt get split in a divorce?

Debt obtained after the marriage is typically regarded as shared debt and will be divided during the property division process. If student loan debt is determined to be marital debt, then it will likely be divided between both parties.

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