If you helped pay off your spouse’s student loan, and you’re now getting divorced, you may be wondering whether you can get reimbursed for that money. The answer is that it depends. Courts look at the facts and weigh several factors.
Liability for Debts of a Spouse
Under New York law, generally, a spouse is not liable for the other spouse’s debt if it was acquired before marriage. Therefore, if your spouse had student loans before marriage, you wouldn’t be responsible for paying them during marriage or after divorce. Creditors couldn’t go after your separate assets, but they could seek your spouse’s share in joint assets.
If the loan was acquired during marriage, courts look at whether the debt was acquired in furtherance of the marriage or to benefit the marriage. If so, both spouses are liable for paying it regardless of whose name the debt is in. This means that you may be responsible for the student loan debt if it benefited the marriage, and the student loans would be divided in divorce under the rules of equitable distribution.
Regardless of when the loan was taken out, if you contributed to repaying it during your marriage, you may have a claim for reimbursement of those payments, depending on the circumstances.
Student Loans Taken Out During Marriage
Just because a student loan is acquired to get an education doesn’t automatically mean that the debt benefited the marriage. Courts consider the length of the marriage and whether the education paid for with the loans enabled the couple to have a higher standard of living, more financial resources or provided other advantages.
In a longer marriage, it is more likely that there was a benefit to the marriage. Therefore, you wouldn’t get reimbursed for helping pay the loan back.
However, in a short marriage, it is easier to show whether there was a benefit to the marriage. If it wasn’t, you should be fully or partially reimbursed. To the extent reimbursement is warranted, the money you contributed to the loan repayment constituted marital funds, which means you can only get half of it back.
How courts rule in these situations is fact-specific. In equitable distribution, there are more than 14 factors that may be considered by the court.
Ideally, couples should discuss student loans and other debts before there is a problem in the marriage. They can be addressed in a prenuptial or post-nuptial agreement to avoid having to litigate later in the event of a divorce. Having these conversations is good for the marriage. It encourages couples to talk about their finances and resolve problems together, so it doesn’t destroy the relationship.
If you’re considering divorce, it’s important to work with an experienced attorney. Contact us to learn how we can help you.
