Dividing debt during divorce can feel just as important as splitting assets. One common question is who takes on student loan debt. In New Jersey, several key factors determine the answer. You need to understand how courts handle both separate and marital debt so you can prepare and protect your finances.
When student loans are separate property
If you or your spouse took out student loans before the marriage, that person usually keeps the responsibility. The law treats those loans as separate property. You don’t have to pay for your spouse’s premarital student debt, even after years of marriage. Your personal education debt from before the marriage stays your own, regardless of the relationship’s length.
When student loans are marital debt
If one of you took out student loans during the marriage, the court may treat them as marital debt. In that case, both of you could share responsibility. Judges look at how you used the loan money. If you used it to support the household or cover living expenses, the court might divide the debt. But if the loan only supported one spouse’s career, that person might take full responsibility. The loan’s timing and use play a big role in the court’s decision.
How courts decide loan responsibility
New Jersey courts focus on fairness, not an automatic 50/50 split. Judges look at income, earning potential, and who gained from the loan. If one spouse increased their income because of the degree, the judge might assign the loan to that person. Courts also consider whether both of you agreed to the loan and how it affected your shared finances. The goal is to divide responsibility in a way that feels fair to both sides.
Divorce doesn’t erase student loan debt. Know what you owe before you finalize anything. Gather loan statements and records that show how you used the money. That information helps clarify who should handle which debts. Planning ahead gives you more control over your post-divorce budget and financial stability.
