What happens when you marry someone with student loan debt?
What happens when you marry someone with student loan debt?
So if getting married means you'll have a higher AGI, your student loan payments are likely to go up. If your spouse also has student loans and you file your taxes together, you may both see your monthly payments drop to account for the additional debt, even if you make more money together.
Who is responsible for student loan debt in divorce?
Student loans and parent loans borrowed during a marriage are considered to be the joint responsibility of the spouses if they lived in a community property state. Student loans and parent loans borrowed before a marriage or after legal separation or divorce remain the separate responsibility of the borrower.
Can student loans garnish your spouse’s wages?
The answer is yes. Your student loan creditors can garnish your spouse's wages to recover the amount of your defaulted student loan. You don't mention whether the loan was incurred before or after marriage. Either way, the creditors can collect, but for different reasons.
Do I have to include my husband’s income for student loan repayment?
If you are married and both you and your spouse have student loans, the IBR formula considers you and your spouse's joint federal student loan debt as well as your joint income if you file taxes jointly. However, you may lose certain tax benefits by filing separately.
What happens when you marry someone with debt?
In community property states, you are not responsible for most of your spouse's debt incurred before marriage. However, the IRS says debt taken on by either spouse after the wedding is automatically a shared debt. Even if your spouse opens up a line of credit in their name only, you could still be liable for that debt.
