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Navigating divorce and student loan debt

On Behalf of | Mar 28, 2023 | Divorce

Over the past few years, student loan debt has become a significant financial burden for many Americans. According to Education Data Initiative, student loan debt has surpassed $1.7 trillion in the United States.

With the high cost of education and the growing number of individuals with student loan debt, it is no surprise that student loans are now a common issue in divorce proceedings.

Community property laws

In Texas, community property laws govern the division of student loan debt during a divorce. This means that if either spouse takes out student loans during the marriage, they will likely split the debt equally. This is even the case if one person took on more debt than the other.

Exceptions to the rule

Despite community property laws, there are several factors that can affect the way a court will divide student loan debt. For one, if a spouse is responsible for paying child support, student loan debt can have a significant impact on their ability to pay. In some cases, the court may adjust the child support amount to take the student loan debt into account.

Another factor that can come into play is whether the student loan has benefited the marriage. For example, if a spouse used student loan funds to obtain a degree so they could get a higher-paying job that supported their family, the court may take this into account when dividing the debt.

Divorce is difficult enough as it is. When student loans are in the picture, the process can become even harder to get through. However, if people understand their options and obligations, they can emerge from the situation with a brighter financial future ahead of them.