Are Student Loans Considered Marital Debt In a Divorce?

Jordan Meggs • August 22, 2022

With tens of millions of Americans in college debt, complicated financial problems can arise when couples divorce.

Couple divorcing looks over student loan debt

Over 42 million Americans have student loan debt, and the numbers are steadily rising. While many are getting married later in life, some couples tie the knot early on. Some couples get married after one person has already accepted student loans, while others tackle the risk together. Therefore, when Alabama couples divorce, student loan debt can pose complicated financial problems.


Divorce in Alabama: How are Debts and Assets Divided?



Alabama, like many other states, follows the equitable distribution doctrine. Unlike community property states where everything is split 50/50, Alabama's courts now divide assets and debts fairly—and the division isn't always equal. If either spouse has a high earning potential, they'll likely get fewer marital assets and less debt.


Which Party is Responsible for Student Loan Debt?


Allocating assets and debts is challenging, especially when divorces involve student loans. According to a report from Education Data Initiative, US student loan debt totals nearly $1.75 trillion, with the average borrower owing about $40,000. A spouse's responsibility for college debt depends on the answers to a few basic questions:


  • When was the debt acquired? If it was amassed before marriage, it's not considered marital debt.
  • Did either spouse cosign the other person's student loan? If so, they're responsible for a portion of the debt. Here, contract law supersedes state law.


Untangling finances after a divorce is never easy, but the process may become even more complex when spouses have student loan debt. A divorce attorney in Cullman can use their knowledge of state law to help you achieve a fair outcome. Call today to schedule a consultation.


Do Prenuptial Agreements Play a Role?


Also known as prenups, these agreements are contracts signed by couples prior to marriage; they outline how debt and assets are divided in the event of a legal separation or divorce. For instance, a prenup may specify that student loans are each spouse's responsibility, regardless of when they're taken on.


Prenuptial agreements override state law, even in equitable distribution states like Alabama. This provides couples with a degree of clarity when things get confusing during a divorce. Verbal agreements, such as those where one spouse works to put the other through school, should be finalized in a prenuptial agreement to ensure that they're legally binding and considered during the settlement phase.


Crucial Questions About Divorce and Student Loan Debt


Dealing with divorce and student loans is difficult, to say the least. As spouses untangle their personal lives and finances, they should ask and answer these student loan questions.


  • How was the money spent? In most instances, student loan funds are applied to tuition, books, fees, and other materials needed to pursue a college degree. Some people, however, spend some of that money for the other spouse's benefit. 
  • What's each person's earning potential? When determining the fair and equitable distribution of debt, the courts will consider each person's earning potential. If a spouse can support themselves and any dependents, they're more likely to receive a larger share of student loan debt.
  • Was a degree earned? If a borrower earned a degree after accruing student loan debt during a marriage, the state's courts will likely not consider it marital property. The graduate, though, will likely have an increased earning potential that may increase their share of marital debt.
  • Was there a cosigner? If you've cosigned on an ex-spouse's student loans, you'll be held partially responsible. This issue must be addressed during divorce proceedings to prevent credit damage.


No matter the extent of your ex-spouse's student loan debt, you shouldn't be held entirely responsible. Contact us via our online form or call today to request a consultation.


Paying Off Student Loan Debt: Simple Strategies for an Easier Divorce


Student loan debt shouldn't make Alabama divorces unaffordable. Follow these straightforward tips to pay the debt down quickly and efficiently.


  • Focus on the high-interest debt first. Before initiating divorce proceedings, pay off the student loan with the highest interest—no matter whose it is. Starting with higher-interest debt will make it easier to save in the long term.
  • Seek lower interest refinancing. Depending on each spouse's credit history and income, refinancing for better repayment terms and rates may make sense. Several lenders offer couples with good credit extremely low-interest rates, but it pays to be careful when consolidating this type of debt—when the divorce goes through, you'll be responsible for all of it instead of just a portion.
  • Pay consistently, even if it is a small amount. Making frequent payments, even if it's the minimum monthly amount, will keep the account current, build a stronger credit history, and raise your score. With consistent payments, you'll be more likely to qualify for good rates on auto loans, credit cards, and a mortgage after the divorce is finalized.
  • Keep in touch with the loan service provider. The United States Department of Education has several repayment plans depending on family size and income. That means anyone, even an ex-spouse who is unemployed, should be able to find an affordable payment. Unlike the government, private student loan providers don't offer this level of leniency. If you've fallen on difficult times during or after a divorce, consider asking the service provider for a forbearance, deferment, or alternate repayment option. Any of these will keep the loan out of default and prevent serious damage to your credit score.


No matter how bad your personal financial situation has become during an Alabama divorce, it's important to remember that you aren't the first person to have such difficulties. Call our office today to learn how a divorce attorney can help minimize the financial hardship imposed by a spouse's student loan debt.


We Are Here to Help


We know that divorces are logistically, emotionally, and physically debilitating, and we're here to lessen the burden. Hiring an experienced divorce attorney will make the process fairer and more affordable. Because our firm focuses on Alabama family law, we understand the dynamics of divorce and can walk you through the process. Call or click to schedule a no-obligation consultation with a Cullman divorce lawyer.


By Seo Management August 6, 2024
Many people find a car essential today, particularly individuals who do not live in urban areas. Public transportation may be unreliable, and men and women must get to work, school, medical appointments, and more. In addition, the ability to drive is a sign that a person is free. They can choose to go wherever their heart desires at a moment’s notice. They aren’t relying on someone else to take them where they want or need to go. Driving is not a right, however. It is a privilege granted by the state where the individual lives and this privilege can be revoked in certain situations. The person named on the driver’s license agrees to obey all traffic laws and drive safely on all roads. The state retains the right to suspend or revoke the license when they don't. Men and women should consult a criminal defense attorney if they lose their license following a DUI charge to navigate the process of restoring the license. Driver’s License Suspensions  The state may suspend a driver’s license for several reasons. A driver with several traffic tickets might find the state takes away their ability to operate a motor vehicle, as it is responsible for keeping other drivers on the road safe. When a person fails to appear in court after being ordered to do so, the state may suspend their driver’s license. It might also take a person’s license if they own back child support to encourage the delinquent parent to catch up on their financial obligation. Driving under the influence will also lead to the suspension of a person’s license. Driving Under the Influence A person driving under the influence of drugs or alcohol will have their license suspended, and that is only one of several penalties they face. When charged with this crime, a person immediately loses driving privileges. Law enforcement has either tested this individual and found their blood alcohol content was at or above the state legal limit or the driver refused chemical testing. The driver must turn their license over when they are charged. They may have the license returned until they appear before a judge, and the judge may suspend the license again for a longer period. Implied Consent Many drivers believe they can refuse chemical and field sobriety tests to avoid losing their licenses. That is not the case. When they receive their driver's license, they agree to undergo chemical testing for drug or alcohol use. This testing may include blood tests, urine analyses, breath tests, or a Breathalyzer. When a driver refuses one or more of these tests, the law enforcement officer may arrest them and require them to undergo testing. Refusing these tests subjects the driver to harsher penalties. The refusal may lead to the driver losing their license for 90 days or being required to have an ignition interlock device installed on their vehicle. Prosecutors may also bring up this refusal in court as evidence of the driver’s impairment. Restoring Driving Privileges Once a License Has Been Suspended Drivers must know how to have their license restored once it has been suspended. They must first confirm that the license has been suspended rather than revoked. When the license has been revoked, the driver must go through all steps required to restore their driving privileges just as they would if the license were suspended. However, they must also retake their driving tests before getting their license back. Administrative license suspensions often come shortly after a DUI arrest. They differ from a license suspension related to criminal charges, such as a DUI conviction. To restore a license following an administrative suspension, the driver can request a hearing where they contest the suspension. During this hearing, the law enforcement officer who handled the arrest will share evidence of why they stopped the driver and what they found during the traffic stop. The driver then mounts a defense, and the hearing officer rules. If the hearing officer upholds the suspension, the driver must abide by all court orders and pay all fines and fees before the suspension period ends. The fines, fees, and court orders vary by the suspension type. DUI Suspensions Before restoring a person’s license when they have been convicted of a DUI, Alabama requires the driver to complete a substance abuse treatment program. The state currently has over 25 court referral programs for drivers, and each program has court referral officers and juvenile instructors. The driver might be required to sit through presentations about substance abuse and how drugs and alcohol affect their driving. The court might also have them participate in an inpatient or outpatient substance abuse treatment program. Level One treatment involves a 12-hour presentation about substance abuse laws and how different substances affect a person’s driving ability. Courts only offer this level for individuals who don’t have an identified substance use disorder. If the court presumes or determines a person has a substance use disorder, it will order the individual into Level Two treatment. The driver participates in a program that lasts at least 24 hours. The student must interact and take an active part in the treatment. This treatment program covers everything from Level One and delves further into substance abuse patterns and available support systems. Self-help meetings make up a portion of Level Two treatment programs. Level Three treatment programs include a mental health evaluation. The student is also referred for treatment in an approved substance abuse program, which may be either inpatient or intensive outpatient. Anyone 21 and under charged with DUI is considered an at-risk youth. They must take part in a 12-hour presentation. The presentation covers topics such as coping skills and conflict resolution. In addition, the youth will learn more about alcohol and drug abuse laws. Restoring the License Taking part in a treatment program is one step in restoring the license. The driver must also pay any fines associated with the suspension and obtain SR-22 insurance. The state may issue a restricted or hardship license for those needing a license to continue working or attending school. This license allows the individual to drive under certain conditions, such as when they have medical or treatment appointments to attend. Before issuing this restricted license, the court will require the driver to install an ignition interlock device on their vehicle. How Long Will the Suspension Last? Administrative suspensions may last as little as 90 days or up to three years. First-time offenders will have their licenses suspended for 90 days, second-time offenders will lose their licenses for one year, and third-time offenders lose them for three years, according to FindLaw.com. If they obtain a restricted license, it may be used for essential travel only in Alabama. Fines and Penalties Assessed with Suspended Licenses Any driver whose license has been suspended must pay a $275 reinstatement fee. There is also an additional $25 drug-related fee and a $150 interlock issuance fee. Additional fees may also be charged, and the driver might need to pay an attorney to fight the suspension. Fees are typically lower when the suspension is from something other than driving under the influence. Contact a criminal defense attorney for more information on restoring a suspended license. No two cases are identical, and the attorney can guide the person through this restoration. With their help, a person can navigate this process and get their license back at the first opportunity.
By Seo Management August 6, 2024
Who is going to take care of the kids after the divorce? How will visitation with the other parent be done? When divorcing, there is a lot to consider, and a lot of the contention comes down to the children. It can be hard to separate and think about the kids living at each house part-time instead of being with both parents every day. It also doesn’t help that the laws for custody can be confusing. Talking with a lawyer can help clarify custody issues and enable parents to learn more about what to expect from their situation. Types of Custody Arrangements There are various potential custody arrangements that parents must consider. Custody covers the physical custody, such as where the child lives each day. It also covers legal custody, which covers who is able to make educational, medical, religious, and other decisions. Parents who want to make sure they get as much parenting time as possible will want to work with a divorce attorney in Cullman, AL . Joint or 50/50 Custody Arrangements The most common custody arrangement is shared custody, where both parents can make legal decisions for the child and the child splits their time between both households. The amount of time the child spends at each house will vary by the specifics of the case. In some cases, one parent can override the other when it comes to legal decisions. What are the disadvantages of 50/50 custody? Shared custody works in many cases, but it can have negative impacts on the child, especially at the beginning when they are getting used to living in two different households. There also can be issues with differing rules based on which house the child is at, issues with exchanges, and more. Sole Custody Arrangements Sole custody arrangements are where one parent has physical and legal custody of the child. The other parent may have supervised or unsupervised visitation, but the child doesn’t live with them. The parent with legal custody is able to make all decisions for the child, such as what school they attend, what religion they are brought up with, and more. What are the disadvantages of sole custody? Disadvantages can include a strained relationship with the other parent, the child having issues with not being able to see the other parent as much, issues with exchanges during visitation, and more. It is important for parents to understand and mitigate these disadvantages as much as possible. What Do the Courts Consider? While shared custody is the most common type, it does need to be considered on a case-to-case basis, as it is not a good fit for all situations. Courts will consider a number of things when determining custody, including the following. The needs of the child The home environment for both parents Stability of both parents Safety of the child Ability to provide for the needs of the child Relationship between the child and each parent The disruption caused by changes after the divorce The child’s preferences if they are old enough Any potential issues that can arise Modifications for Custody Custody is legally binding once the courts have approved or set it, but that doesn’t mean that changes are impossible. It is possible, and often necessary, to change the custody arrangement after some time has passed. There are numerous reasons why custody arrangements can be changed, including the following. Child’s Needs Change The child may need to live more with another parent to get into a special school or may be better living with the other parent due to behavioral issues that appear after the divorce. Parenting Ability Changes One parent may go through life changes or medical issues and not be able to parent the way they did previously. This could mean it would be better for the child to live with the other parent more. Changes in a Parent’s Living Situation If a parent moves out of state, it may be better for the child to stay with the parent who isn’t moving so they can still live in the same place, attend the same school, and be close to their friends. Tips for Co-Parenting After the Divorce Co-parenting can be hard, especially in the beginning, but it can become easier over time. The main goal should be to focus on the child and their needs, not on the end of the relationship or any anger over the situation. Focus on the Child, Not the Feelings While there may be a lot of feelings toward the divorce and new living arrangements, it’s best not to discuss these with the child or use them as a way to vent. Instead, focus on the child and talk to someone else, whether that’s a friend, family member, or therapist, about the divorce. Work on Improving Communication Take the time to learn more about improving communication in a divorce. This may mean using written communication methods like text to avoid forgetting anything or a shared calendar to help everyone stay on the same page. Learn How to Make Decisions Together The parents must learn how to make decisions for the child together unless one parent has full legal custody. Even with full legal custody, though, it is a good idea to take into account the other parent’s desires for major decisions. Make Transitions Easier for the Child Parents should do as much as possible to make any transitions easier for the child. This includes the initial divorce as well as when they transition from one household to another. Let the Child Know What to Expect It is a good idea to let the child know what to expect going forward so everything is less confusing. This can mean talking to them about when they’ll see the other parent, how holidays are handled, and more. Co-parenting and determining custody are complex and many factors can vary from situation to situation. For parents getting divorced and worried about custody, it is important to speak with a lawyer to learn more about local laws and the impact they can have on the case. Schedule a consultation today to work with a lawyer to help find the right custody arrangement for your situation.
By Seo Management August 6, 2024
Who is going to take care of the kids after the divorce? How will visitation with the other parent be done? When divorcing, there is a lot to consider, and a lot of the contention comes down to the children. It can be hard to separate and think about the kids living at each house part-time instead of being with both parents every day. It also doesn’t help that the laws for custody can be confusing. Talking with a lawyer can help clarify custody issues and enable parents to learn more about what to expect from their situation. Types of Custody Arrangements There are various potential custody arrangements that parents must consider. Custody covers the physical custody, such as where the child lives each day. It also covers legal custody, which covers who is able to make educational, medical, religious, and other decisions. Parents who want to make sure they get as much parenting time as possible will want to work with a divorce attorney in Cullman, AL . Joint or 50/50 Custody Arrangements The most common custody arrangement is shared custody, where both parents can make legal decisions for the child and the child splits their time between both households. The amount of time the child spends at each house will vary by the specifics of the case. In some cases, one parent can override the other when it comes to legal decisions. What are the disadvantages of 50/50 custody? Shared custody works in many cases, but it can have negative impacts on the child, especially at the beginning when they are getting used to living in two different households. There also can be issues with differing rules based on which house the child is at, issues with exchanges, and more. Sole Custody Arrangements Sole custody arrangements are where one parent has physical and legal custody of the child. The other parent may have supervised or unsupervised visitation, but the child doesn’t live with them. The parent with legal custody is able to make all decisions for the child, such as what school they attend, what religion they are brought up with, and more. What are the disadvantages of sole custody? Disadvantages can include a strained relationship with the other parent, the child having issues with not being able to see the other parent as much, issues with exchanges during visitation, and more. It is important for parents to understand and mitigate these disadvantages as much as possible. What Do the Courts Consider? While shared custody is the most common type, it does need to be considered on a case-to-case basis, as it is not a good fit for all situations. Courts will consider a number of things when determining custody, including the following. The needs of the child The home environment for both parents Stability of both parents Safety of the child Ability to provide for the needs of the child Relationship between the child and each parent The disruption caused by changes after the divorce The child’s preferences if they are old enough Any potential issues that can arise Modifications for Custody Custody is legally binding once the courts have approved or set it, but that doesn’t mean that changes are impossible. It is possible, and often necessary, to change the custody arrangement after some time has passed. There are numerous reasons why custody arrangements can be changed, including the following. Child’s Needs Change The child may need to live more with another parent to get into a special school or may be better living with the other parent due to behavioral issues that appear after the divorce. Parenting Ability Changes One parent may go through life changes or medical issues and not be able to parent the way they did previously. This could mean it would be better for the child to live with the other parent more. Changes in a Parent’s Living Situation If a parent moves out of state, it may be better for the child to stay with the parent who isn’t moving so they can still live in the same place, attend the same school, and be close to their friends. Tips for Co-Parenting After the Divorce Co-parenting can be hard, especially in the beginning, but it can become easier over time. The main goal should be to focus on the child and their needs, not on the end of the relationship or any anger over the situation. Focus on the Child, Not the Feelings While there may be a lot of feelings toward the divorce and new living arrangements, it’s best not to discuss these with the child or use them as a way to vent. Instead, focus on the child and talk to someone else, whether that’s a friend, family member, or therapist, about the divorce. Work on Improving Communication Take the time to learn more about improving communication in a divorce. This may mean using written communication methods like text to avoid forgetting anything or a shared calendar to help everyone stay on the same page. Learn How to Make Decisions Together The parents must learn how to make decisions for the child together unless one parent has full legal custody. Even with full legal custody, though, it is a good idea to take into account the other parent’s desires for major decisions. Make Transitions Easier for the Child Parents should do as much as possible to make any transitions easier for the child. This includes the initial divorce as well as when they transition from one household to another. Let the Child Know What to Expect It is a good idea to let the child know what to expect going forward so everything is less confusing. This can mean talking to them about when they’ll see the other parent, how holidays are handled, and more. Co-parenting and determining custody are complex and many factors can vary from situation to situation. For parents getting divorced and worried about custody, it is important to speak with a lawyer to learn more about local laws and the impact they can have on the case. Schedule a consultation today to work with a lawyer to help find the right custody arrangement for your situation.
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Nobody wants to be stopped by the police, even when they have done nothing wrong. If you are in this situation, knowing what to do can help reduce the stress associated with this encounter. Stay calm and never act hostile toward the officers. Know your rights and what to do so the situation doesn’t escalate. Know Your Rights Most people know they have the right to remain silent during an encounter with law enforcement. You may be required to provide your name, depending on state laws where the encounter occurs, but that is it. Firmly state you wish to remain silent and stop speaking. They cannot compel you to do so once you make this statement. Furthermore, if police stop you while driving, the right to remain silent applies to any passengers in the vehicle. Passengers might also ask if they can leave during this traffic stop. If officers say they may, they should do so quietly. The Fourth Amendment of the U.S. Constitution prohibits unreasonable searches and seizures. Law enforcement officers cannot search your person, home, or car without your permission unless they have a warrant. Have them produce this warrant so you can review it. However, officers may pat you down to check for weapons. They are permitted to do so for their safety. If the officers ask to search, say that you do not consent. They may conduct this search anyway, depending on the circumstances of the encounter. This verbal statement that you do not consent to the search may become important if authorities file charges against you. When officers enter the home, they may not search without your permission or a search warrant. If they arrest you at home or work, they have the right to search the immediate area or anywhere they can see criminal activity. Pay attention to what they do throughout this search to confirm they conduct it properly and don’t overstep their bounds. Every person has a right to a criminal defense attorney in Cullman, AL . 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When the vehicle is stopped, remain in the car, turn on the interior light, and put your hands where the officer may see them. Ask passengers in the vehicle to show their hands as well. Provide any documents requested by the officer during this traffic stop. They may ask to see your driver’s license, registration, and proof of insurance. Before collecting these documents, let the officer know where they are located. Reaching into a glove box or under the seat may appear to be a threatening move to the officer. Letting them know that is where the documents are and that you aren’t reaching for a weapon can help to reduce tension. Never run from a police officer. Also, do not touch the officers, as any touch could be construed as threatening in a volatile situation. If officers arrest you, go willingly. Don’t resist or become combative. Doing so could make a bad situation worse. Common Misconceptions People often believe they must consent to a search or take a breathalyzer test. 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State laws vary on whether permission is needed so it is always better to ask. A person may come into contact with law enforcement multiple times throughout their life. All parties are responsible for what happens in each interaction. Know your rights and how to handle these interactions safely and legally. Everyone must work together to keep our country safe while ensuring our rights remain protected. This is not a job for one person alone.
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