In New York State, a judge will determine the equitable distribution of assets if there is no prior written agreement between the parties. Equitable distribution refers to the separation of assets and financial responsibilities of the parties. In order to properly complete this process, a judge must know all of the marital assets and debts, including student loans.
In New York State, a judge will determine the equitable distribution of assets if there is no prior written agreement between the parties. Equitable distribution refers to the separation of assets and financial responsibilities of the parties. In order to properly complete this process, a judge must know all of the marital assets and debts, including student loans.
Student Loans Prior To The Marriage
Any student-loan debt that is incurred prior to marriage will usually not be considered marital debt. It will be considered separate debt and the spouse who took out the loan will have to pay off the loan.
Student Loans During The Marriage
According to the updated New York Domestic Relations statute, a professional license or degree is no longer subject to equitable distribution based on an individual’s earning potential.The law has been changed to explicitly state that a degree is not subject to equitable distribution.
Factors Will a Judge Consider
When a judge is determining which party is responsible for paying the student loans incurred by one party during the marriage, a judge will consider multiple factors surrounding the situation. Some of the factors include:
- Whether the student loans were used for daily household expenses for both parties
- Obtained the degree to better support his or her family; and
- Whether the individual who did not incur the student loan debt supported the other party via cleaning and cooking, among others.
When a judge is determining who is responsible for paying the student-loan debt incurred during the marriage, he or she will rely solely on the facts surrounding the case. It is important to consult an experienced attorney who can assist you if you are involved in a divorce, where one spouse has incurred student-loan debt, in order to protect your financial interests. Additionally, it is worth noting that the execution of a prenuptial and postnuptial agreement may address student-loan debt as well as assist in protecting both parties’ interests.
If you are considering entering into a prenuptial or postnuptial agreement that addresses student loan debt, speak with a knowledgeable attorney in your area. The Suffolk County matrimonial law attorneys at McGuire & Peláez, PC are experienced in representing clients in a variety of matters, including pre- and post-nuptial agreements, divorce, child support, custody and visitation, maintenance and equitable distribution. Ms. Peláez has practiced daily in the family court for more than 10 years as private and court appointed counsel, and she will zealously fight for your rights. Contact our Long Island divorce law firm at (631) 348-11702.
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