Are student loans community property in California?
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Are student loans community property in California?
Such debt is considered marital debt. So if you live in any of those nine states, you and your spouse will have to evenly split all student loan debt that was acquired after marriage. California is an exception; even though it’s a community property state, student loans are considered separate property.
What happens to student loan debt in a divorce?
All debt acquired before marriage remains separate property. So if you accumulate $100,000 in student loans before marriage, for example, that debt remains all yours even after you get divorced. [Read: 4 Tips for Families Navigating College Financial Aid Amid Divorce.] Such debt is considered marital debt.
Is husband liable for wife’s student loan?
In non-community property states, as long as you don’t co-sign your husband’s loan, you can’t be held liable for them. But in community property states, you are generally responsible for your spouse’s debts even if your name is not on them. But at least you won’t be making payments on student loans for years.
Does your spouse have to pay your student loans if you die?
If the student loan is a federally backed education loan, a spouse is safe from repayment liability. According to the U.S. Department of Education, if the borrower of a federal student loan dies, the loan is automatically canceled and the debt is discharged by the government.
