Am I liabel for wife's school loan debt?

[gkisystems]

What is the name of your state (only U.S. law)? Wisconsin.

I am getting married in September. My wife is bringing no assets to the marriage and $80k in school loan debt. Unfortunately, the school degree she earned has very low earning potential (early childhood education). She would only be able to get a job in a daycare or K-3 school that would have a starting pay around $35k/year. Despite this, she is still unemployed although actively looking.

Her loan payments are just coming due now (graduated recently) and are around $1k/month but she has no income. I am not interested in making the payments for her.

What happens if she just doesn't pay the payments (besides having her credit score ruined)? Can her creditors go after me and/or garnish my wages? If so, can a prenump protect me from her creditors?

I own my own house, 3 cars, have two 401k's, and IRA, and some cash in the bank. I guess my net worth is probably around $100k considering everything.

 

[mistoffolees]

The creditors can go after any joint assets. As long as you never put her name on anything, they can't take it.

However, it seems to me that you're missing part of the concept of a marriage.

(I'm also having trouble figuring out why you own 3 cars as a single person - and only have $100 K net worth with a home, 3 cars, 2 401Ks, an IRA, and cash in the bank, but that's an aside).

Have her look into possible state funded programs where part of the college loan debt can be forgiven if you serve in a low income area. I don't know if your state has it, but it's worth a look.

 

[gkisystems]

The creditors can go after any joint assets. As long as you never put her name on anything, they can't take it.

However, it seems to me that you're missing part of the concept of a marriage.

(I'm also having trouble figuring out why you own 3 cars as a single person - and only have $100 K net worth with a home, 3 cars, 2 401Ks, an IRA, and cash in the bank, but that's an aside).

Have her look into possible state funded programs where part of the college loan debt can be forgiven if you serve in a low income area. I don't know if your state has it, but it's worth a look.

I'm only 25 years old, so I haven't had a lot of time to start saving up yet. The cars I do own are probably only worth $10k.

The most important asset I want to protect is my income. I've worked too hard paying off $40k worth of my own debt to get where I am and I'd be willing to cancel the whole marriage thing if marrying her puts my stuff at risk. Could my wages be garnished to pay her school loans? If she is not working and has no income, I am worried her creditors would want to come after me because she would be in my household and perhaps claim that 1/2 of my income belongs to her as marital property.

 

[TigerD]

My wife is bringing no assets to the marriage and $80k in school loan debt. Unfortunately, the school degree she earned has very low earning potential (early childhood education). She would only be able to get a job in a daycare or K-3 school that would have a starting pay around $35k/year. Despite this, she is still unemployed although actively looking.

Her loan payments are just coming due now (graduated recently) and are around $1k/month but she has no income. I am not interested in making the payments for her.

You might want to rethink getting married. You are approaching your pending marriage in a very selfish manner and it will come back around to bite you.

What happens if she just doesn't pay the payments (besides having her credit score ruined)? Can her creditors go after me and/or garnish my wages? If so, can a prenump protect me from her creditors?

I own my own house, 3 cars, have two 401k's, and IRA, and some cash in the bank. I guess my net worth is probably around $100k considering everything.

Really? And so you are worried about $400 a month or less in payments why?

I intended to tell you how to get her student loans deferred and cancelled. But frankly, I don't like your attitude. Look it up yourself.

DC

 

[ecmst12]

Her school debt will never become yours. She should look into a hardship deferral. If she is unemployed, it should not be hard for her to get one. But I agree you are kind of missing the point of becoming partners. If you are "willing to call off the marriage thing" over this, then you should just forget it, you're failing to understand what it means to enter into a marriage.

 

[candg918]

OP,

You have a very valid concern. Your fiancee's debts can affect your ability to get credit as a couple. I personally would be concerned due to my observations of several friends' assets being wiped out to pay for spouses' student loan debt and once it was paid off, the divorce proceedings began.

I suggest that it would be worthwhile for your fiance to look at furthering her education; she should prepare for a higher paying position in the area. As was mentioned, there is student loan forgiveness in some programs.

If the loan was taken out through a for profit school, she should investigate the actual terms of the debt and if there are any actions being taken against the school by the state. There are several institutions that have taken advantage of students and placed them in very bad positions due to misrepresentation.

 

[Bali Hai]

OP,

You have a very valid concern. Your fiancee's debts can affect your ability to get credit as a couple. I personally would be concerned due to my observations of several friends' assets being wiped out to pay for spouses' student loan debt and once it was paid off, the divorce proceedings began.

I suggest that it would be worthwhile for your fiance to look at furthering her education; she should prepare for a higher paying position in the area. As was mentioned, there is student loan forgiveness in some programs.

If the loan was taken out through a for profit school, she should investigate the actual terms of the debt and if there are any actions being taken against the school by the state. There are several institutions that have taken advantage of students and placed them in very bad positions due to misrepresentation.

Excellent advice, I would add that getting married is no different than any other legal business arrangement and that's the way it should be viewed.

I'm sure it's the other party with the heavy debt load pushing marriage. RED FLAG!

 

[mistoffolees]

My grandparents were married just shy of 50 years when my grandmother passed.
My in-laws are going on 53 years.
My parents were married over 25 years when my mother passed.
I've been married over 12 years and going strong.

Bali - your bad luck & bad choices do NOT mean that everybody will hit the same wall you did.

No, but you have to understand. Everyone that Bali has been married to has had a horrible experience.

 

[Bali Hai]

My grandparents were married just shy of 50 years when my grandmother passed.
My in-laws are going on 53 years.
My parents were married over 25 years when my mother passed.
I've been married over 12 years and going strong.

Bali - your bad luck & bad choices do NOT mean that everybody will hit the same wall you did.

When your grandparents married the the divorce rate for that generation was much lower. Divorce back then was discouraged, not encouraged like it is now. People back then had much better morals than today.

In this case OP is being set up for marriage, reduction of the other party's debt load, then divorce and alimony.

 

[liandrajade]

Legally, in most states, the debt the spouse has BEFORE the marriage usually cannot be transferred or become the responsibility of the other spouse BUT go read your states laws and statutes to figure that out.

Debt aside, why you are marrying her then? A marriage is a legal and emotional transaction. You are investing time and love into each other. Sounds like you have a severe amount of distrust, if you are so concerned about her "debt" then I would not even bother with the wedding.

No one is saying you should be saddled with her debt or responsibilites, a marriage is about BOTH partners carrying their weight BUT also knowing when to support their spouse or how to help their spouse help their self.

There is no such thing as a perfect marriage but one that starts on such shaky foundations, it's like you are setting yourself up for failure OR you are looking for a reason to end the engagement, hence your comment about " willing to cancel the whole wedding thing". Stop looking for an excuse, end the relationship if you don't really want to be in it anymore.

 

[candg918]

Anyone who is uncomfortable with the legal and financial situation of their intended spouse should not marry until the problem is resolved to their satisfaction.

In this climate of lack of commitment, one should be very protective of the assets they bring into the marriage and should be understanding if the marriage is put on hold due to his/her legal and financial problems.

 

[Bali Hai]

Anyone who is uncomfortable with the legal and financial situation of their intended spouse should not marry until the problem is resolved to their satisfaction.

In this climate of lack of commitment, one should be very protective of the assets they bring into the marriage and should be understanding if the marriage is put on hold due to his/her legal and financial problems.

More exellent advice!

One's business sense should overcome one's emotions when considering marriage. Because when the love is gone (and it WILL leave) what's left to talk about is money.