Student loan/Community Property

[tmag1012]

I live in Texas. I attending a college for 1 1/2 years prior to getting married and then after marriage I attended another 2 years. I had taken out student loans for all of my schooling which did not become due or payable until 2 years after I married. In addition, 2 years after marriage we took out a consolidation loan for the student loans for the schooling that I took prior to marriage and some from after the marriage. So the consolidation loan was during the marriage which constitutes a whole new loan. My question is, are these student loans considered community property or are they my separate property? My spouse did, in fact, benefit from my training because my subsequent income was much greater than it would have been without the training.

[mistoffolees]

Originally Posted by tmag1012

I live in Texas. I attending a college for 1 1/2 years prior to getting married and then after marriage I attended another 2 years. I had taken out student loans for all of my schooling which did not become due or payable until 2 years after I married. In addition, 2 years after marriage we took out a consolidation loan for the student loans for the schooling that I took prior to marriage and some from after the marriage. So the consolidation loan was during the marriage which constitutes a whole new loan. My question is, are these student loans considered community property or are they my separate property? My spouse did, in fact, benefit from my training because my subsequent income was much greater than it would have been without the training.

Texas is a strange state wrt property division. It is a community property state, but the judge has discretion to divide the assets in any ratio he wishes.

Generally, your student loans are your problem. While your stbx benefited during the time you were married, YOU will benefit for the rest of your life. In addition, your stbx probably didn't get any benefit. While he/she got the benefit of greater income for you, he/she also had 2 years when you were in school. Even if you were working while you were in school, your earning ability would have been reduced.

When you consolidated, how much of the new loan was to pay off student debt and how much was for other purposes?

I would prepare myself for getting all the student loan debt as well as getting the proportion of the new loan which was used to pay the student loans. That's really the most fair way to handle it. Whether your particular judge would do that or not is really anyone's guess.

[LdiJ]

Originally Posted by mistoffolees

Texas is a strange state wrt property division. It is a community property state, but the judge has discretion to divide the assets in any ratio he wishes.

Generally, your student loans are your problem. While your stbx benefited during the time you were married, YOU will benefit for the rest of your life. In addition, your stbx probably didn't get any benefit. While he/she got the benefit of greater income for you, he/she also had 2 years when you were in school. Even if you were working while you were in school, your earning ability would have been reduced.

When you consolidated, how much of the new loan was to pay off student debt and how much was for other purposes?

I would prepare myself for getting all the student loan debt as well as getting the proportion of the new loan which was used to pay the student loans. That's really the most fair way to handle it. Whether your particular judge would do that or not is really anyone's guess.

The only possible exception to that is if some of the student loan money was used for living expenses. In that case, that portion would be marital debt.

[tmag1012]

I have read the Texas Family Law Code and I do not see where the student loan would fall into the category of separate property. The consolidation loan was used just to pay off the student loans not for any other purpose. My ex did pay for my living expenses for the 1 year and 6 months that I was in school before I started to work. Are you speaking from actual courtroom experience on how the judge would rule? Does the difference in our income have any bearing on the distribution of debt? He makes 71% of the income and I only make 21%. Is there any fair distribution in Texas or just strictly split down the middle?

[mistoffolees]

Originally Posted by tmag1012

I have read the Texas Family Law Code and I do not see where the student loan would fall into the category of separate property. The consolidation loan was used just to pay off the student loans not for any other purpose. My ex did pay for my living expenses for the 1 year and 6 months that I was in school before I started to work. Are you speaking from actual courtroom experience on how the judge would rule? Does the difference in our income have any bearing on the distribution of debt? He makes 71% of the income and I only make 21%. Is there any fair distribution in Texas or just strictly split down the middle?

Will you please go back and read what I said instead of making things up?

I never said that the student loan falls into the category of separate property. I said that it is community property HOWEVER the judge has the ability to separate the debt (and assets) in any way that he thinks is fair. That could well involve assigning you the student loan debt. In order to know whether the judge is LIKELY to do that, you'd need to know the specific judge - which is one of the reasons why local attorneys are important.

[tmag1012]

I am sorry if I appeared to be making things up. I misunderstood. Thanks for your advice. I appreciate it.

[Antigone*of*Greece]

Who knows OP, you might just get lucky. The judge might split the debt between both of you, or assign it all to him. Since he contributed to your higher education and increased earnings potential, then the judge might just see fit to have you pay spousal support.

[IsabellaSoriano]

Originally Posted by Wirelessany1

Who knows OP, you might just get lucky. The judge might split the debt between both of you, or assign it all to him. Since he contributed to your higher education and increased earnings potential, then the judge might just see fit to have you pay spousal support.

oh you just had to make Bali's day? didntcha???