In Washington, student loan debt is not automatically treated the same way in every divorce. While the state follows community property principles, meaning that debts incurred during marriage are often shared, courts also consider who benefitted from the education and how the loan proceeds were used.
- Before Marriage: Student loans taken out before marriage are most often considered separate property.
- During Marriage: Loans taken out while married may be considered community, especially if the funds were used to support the household in addition to paying tuition.
- Mixed Use: If the loan covered living expenses for both spouses, courts may treat some or all of it as a community obligation.
Who Pays the Debt After Divorce?
Unlike credit cards or mortgages, student loans often stay with the spouse who took out the loan. However, Washington courts have discretion. They may order both parties to share the debt if:
- The other spouse benefitted from the education (e.g., increased household income).
- Community funds were used to repay the loans during the marriage.
- The loan supported family expenses beyond tuition.
Impact on Property Division
Courts aim for an equitable division of all assets and debts. If one spouse takes responsibility for significant student loan debt, the other may receive less overall debt or fewer offsets against property. And, remember, Washington judges have the authority to split assets and debts however they believe is fair and equitable. In other words, even if a student loan was acquired as a separate debt, a Washington judge can make financial decisions related to that debt in addition to community property.
Planning Ahead
If you or your spouse has student loans and you are facing divorce, consider:
- Gathering detailed loan records, including when the loans were taken out and how funds were used.
- Reviewing payment history to see if community funds contributed to repayment.
- Being prepared for negotiation, as courts often weigh student loans differently from other debts.
Protecting Your Financial Future
Student loan debt can affect your financial stability long after divorce. Understanding how Washington courts handle these cases will help you prepare for fair negotiations.
At Magnuson Lowell, P.S., we guide clients through complex financial issues in divorce, including the division of student loans. Call us today 425-800-0582 for a free telephone case evaluation to learn how we can help protect your financial future.
