Cindy Allen & Associates PLLC

Phone: 405-310-8673

map map google linkedin

Student loans and divorce settlements

It can be very difficult for Oklahoma residents to get rid of their student loans, but this may not necessarily be the case for the spouse of the debtor. This depends on the status of that debtor at the time the loan is taken out. An unmarried student will typically continue to be solely responsible for their student loans through marriage. In the event of divorce, the student would continue to carry that responsibility. However, a married status at the time a student loan is taken could obligate both spouses to satisfying the debt at the point of divorce.

Property division in Oklahoma is not a matter of evenly splitting assets and debts. The financial standing of each party could weigh on a judge's decision. In some cases, this could involve the carrying forward of student debt by each party. However, there could be a ruling in which the student would be the only party owing those funds. Those who have used consolidation methods to condense their student loans and reduce interest rates could be permanently responsible for the debt regardless of continuing in marriage or divorcing. Worse, the actual student could default and leave their former spouse to deal with the consequences.

Marital debts can be a serious concern in the event of divorce. Joint accounts, for example, could continue to accrue charges in the names of both parties even after a split has been finalized. Furthermore, hidden debts could allow one party to continue to impact the other's credit history and financial well-being long after the divorce has been settled.

A divorce lawyer might recommend that a client begin by obtaining copies of their credit reports and information about all relevant marital accounts, both assets and debts. This would allow some preparations to be made through efforts such as closing joint accounts and identifying any obscure marital resources.

No Comments

Leave a comment
Comment Information