In New Jersey, both assets and debts are divided between spouses during the divorce process using equitable distribution. This means that marital property is split fairly but not necessarily 50/50. Any assets or debts acquired by either spouse during the length of the marriage are considered marital property. Separate property is only assets and debts obtained before marriage. However, many couples in the process of divorce wonder how their student loans will be divided. Thankfully, our knowledgeable law firm has the answers you need! Continue reading to learn how one of our Experienced Mountainside Property Distribution Attorneys can provide individualized legal counseling today.
WHAT HAPPENS TO STUDENT LOANS DURING A DIVORCE?
This depends on when the student loans were acquired. If you or your spouse obtained student loans before the marriage, then the person who took out the loans will be responsible for that debt. However, if the student loan debt was acquired during the length of the marriage, then this debt would be considered marital property in court. In this scenario, you might be liable for your spouse’s student loan debt even after the divorce is finalized. And vice versa, your spouse could still be responsible for your student loans in the divorce settlement.
CAN I AVOID MARITAL DEBT?
If you don’t want to leave the decision-making to New Jersey courts, you and your spouse can choose to hire a mediator or another legal professional to help you and your spouse work towards your own agreement. This can be favorable for spouses who want more control over what happens to their assets. If you and your spouse create your own settlement without the need for courtroom battles, you can both decide if student loans will be divided or not. You can also avoid splitting marital debt altogether by paying off all of your and your spouse’s debts before the divorce process begins.
WHAT IF I CO-SIGNED MY SPOUSE’S LOANS?
If you co-sign a loan, you are still legally responsible for that loan no matter how debts are split in the divorce process. Thankfully though, there are ways to remove yourself from this bind. The easiest method is to refinance the loans in just your spouse’s name (or just in your name, if it’s your loan).
Are you considering filing for divorce in Bergen County, New Jersey? Are you seeking a compassionate divorce attorney who has your best interests in mind? Look no further because Ross & Calandrillo, LLC is on your side! Contact our highly experienced team today for an initial consultation.
