Student loan debt can follow couples long after graduation — and when a marriage ends, deciding who pays what often becomes one of the most complex financial issues in a Massachusetts divorce. How student loans are divided depends on when the debt was incurred, how it was used, and whose name is on the loan.
Massachusetts is an equitable distribution state, which means courts divide marital property and certain debts based on fairness, rather than strictly adhering to a 50/50 split. Student loans can be treated as either individual or marital obligations, depending on the circumstances of the case.
When Student Loans Are Considered Individual Debt
In many divorces, student loans remain the responsibility of the person who took them out. If a spouse borrowed before the marriage or used the funds solely for their own education, the court usually considers the debt separate.
For example:
- A husband takes out loans for law school before getting married.
- A wife borrows for a master’s degree years before the relationship begins.
In these cases, the loans are personal obligations. The other spouse is not responsible, even if they indirectly benefited from the increased household income later on.
When Student Loans Are Treated as Marital Debt
If student loans were incurred during the marriage, Massachusetts courts may treat them as marital debt, especially if both spouses benefited from the education. The court looks at factors such as:
- Timing–Was the loan taken out before or after marriage?
- Purpose–Did the loan cover shared living expenses, not just tuition?
- Benefit–Did both spouses benefit financially from the degree?
For instance, if a spouse borrowed while married to pay tuition and household bills, and the other spouse’s income allowed them to focus on school, a judge may view repayment as a shared responsibility.
However, if the education primarily benefits only one spouse, for example, a professional degree that leads to higher future earnings, the court may assign most or all of the debt to that individual.
Loans in One Name vs. Co-Signed Loans
The name on the loan also matters. When both spouses co-sign a loan, each remains legally liable for repayment, regardless of what a divorce decree says. Lenders are not bound by decisions made in family court. Even if a judge assigns the loan to one spouse, the other remains contractually responsible until the debt is paid or refinanced.
If the loan is in only one spouse’s name, the other spouse generally isn’t liable for payments — but the court can still consider the debt when dividing property or determining alimony. For example, a judge might award more marital assets to the spouse with higher student debt to balance overall fairness.
How Courts Decide What’s Fair
Massachusetts judges consider several factors when allocating marital debts, including:
- Length of the marriage
- Each spouse’s income and future earning potential
- The purpose and use of the debt
- Who benefited from the education
- Each party’s contribution to the household during the marriage
Courts often aim to leave both parties in as fair a financial position as possible. If one spouse supported the other through school — by working or maintaining the household — the court may adjust property division or alimony to reflect that contribution.
Practical Options for Divorcing Couples
In many cases, couples can avoid uncertainty by negotiating how to handle student loans through a settlement agreement. Common strategies include:
- Refinancing loans separately so each spouse is responsible only for their share.
- Offsetting debt with property, such as one spouse keeping more equity in the home in exchange for assuming the loans.
- Using alimony or asset division to balance repayment obligations.
- Agreeing to joint payments until the debt is fully repaid, with clear terms for accountability.
A negotiated solution gives both parties more control and can prevent disputes years later.
Consult Our Massachusetts Divorce Attorneys
Student loan division requires both financial analysis and legal strategy. The outcome affects not only short-term budgets but also long-term financial health and credit standing. At Seder & Chandler LLP, our divorce attorneys assist clients across Worcester, Westborough, and Massachusetts in navigating the complex process of property and debt division. Contact us today to learn how we can help.