At my McKinney office, I am often asked about how student loans are treated in a divorce. Reports say that nearly 7 in 10 graduate with student loans and the average debt amount is $28,400. These loans are often the largest debt couples are having to deal with (or second behind the house mortgage).
Student loans in Texas are treated as any other personal debt. The general rule is that if the loans were incurred before the marriage those loans are the separate debt of the spouse who took out the loan and can’t be divided.
If the loans were taken out during the marriage then the general rule is that the loans are community debt and may be divided between the parties. However, the judge still will divide the debt in a manner he or she believes is a just and right division of debt. So taking into consideration the education and employability of a party and the earning capacity the judge may still award the entire debt to the spouse who took out the loans.
Student loans are part of the larger community estate and must be considered with the overall facts and circumstances of the marriage. At the Law Office of Michael G. Diaz, P.C. we can give you case specific advice so you can know what to expect as you move through the divorce process.
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