Debt and marriage

[loveumms]

Permanent state residence: Maryland

I am getting married in a few months, along with finishing professional school in a little over a year. I wanted to know if anyone is familiar with the laws surrounding educational debt incurred prior to marriage.

Right now I have about $120,000 in school loans. I still have one more year to pay for which will leave me about $200,000 in debt (which is a VERY scary thought). I will have taken all the loans prior to my marriage.

Let me try to explain a little better. I am getting married in October of this year. I still have one more year left of school – at my institution we sign a promissory note at the beginning of the year for the full years loan which covers tuition and living expense money. So, I will sign the promissory note for next year sometime over the summer, prior to our marriage.

If I sign the loan prior to marriage and something happens to me (either serious illness leaving me disabled or death) would my husband be responsible for the debt I acquired prior to us getting married?

Furthermore, it is recommended by our financial aid office to consolidate our loans at the end of our fourth year – to lock in the lowest interest rate and have all the loans combined under one loan. If I consolidate these debts after our marriage, would it then make him responsible (assuming the answer to my above question is he wouldn’t be responsible).

I am asking these questions because I am contemplating life/disability insurance (which is scary to think about at 23). The last thing I want my future husband to have to deal with is my huge school debts if something happens to me.

Thank you for your replies!

 

[Litigation!]

Permanent state residence: Maryland

I am getting married in a few months, along with finishing professional school in a little over a year. I wanted to know if anyone is familiar with the laws surrounding educational debt incurred prior to marriage.

Right now I have about $120,000 in school loans. I still have one more year to pay for which will leave me about $200,000 in debt (which is a VERY scary thought). I will have taken all the loans prior to my marriage.

Let me try to explain a little better. I am getting married in October of this year. I still have one more year left of school – at my institution we sign a promissory note at the beginning of the year for the full years loan which covers tuition and living expense money. So, I will sign the promissory note for next year sometime over the summer, prior to our marriage.

If I sign the loan prior to marriage and something happens to me (either serious illness leaving me disabled or death) would my husband be responsible for the debt I acquired prior to us getting married?

Furthermore, it is recommended by our financial aid office to consolidate our loans at the end of our fourth year – to lock in the lowest interest rate and have all the loans combined under one loan. If I consolidate these debts after our marriage, would it then make him responsible (assuming the answer to my above question is he wouldn’t be responsible).

I am asking these questions because I am contemplating life/disability insurance (which is scary to think about at 23). The last thing I want my future husband to have to deal with is my huge school debts if something happens to me.

Thank you for your replies!

My response:

With a debt load like that, I wouldn't marry you! I'd wait until you were all done and paid.

IAAL

 

[seniorjudge]

Get all the disability (short and long term) and life insurance you can possibly afford.

 

[loveumms]

Thanks seniorjudge - so, should I assume that the answer is he would be responsible? Do all debts incurred before marriage become the responsibility of the spouse? So, does that work in the reverse - if we were to get divorced, he would be responsible for the unpaid debts? Not that we plan on getting divorced but, if it works one way then wouldn't it work the other?


No thanks to litigation - why bother posting if you have nothing helpful to add. If he were to wait until I was all "done and paid" it would be a pretty long wait.

 

[loveumms]

I found this while searching on the internet:

"Similar to separate property, separate debts belong to one spouse. All debts incurred before marriage are separate debts. Thus, for example, educational loans or job training loans incurred before marriage are separate debts. One of the prime benefits of a prenuptial agreement is that separate property can be prevented from being accidentally re-classified as joint property, either due to co-mingling or because payments were made out of joint funds. Prenuptial agreements can be keep debts separate. For instance, if one spouse owes a large student loan, you can both agree to have that student loan as a separate debt, and thus, only one spouse would be liable for that debt upon a dissolution of marriage."


Would a pre-nup prevent him from being responsible for the debt? Not sure if divorce is the same as injry/death.

 

[loveumms]

I also found this: "Not necessarily. This is a complicated question, but in general, creditors cannot come after your assets for debts that are in your spouse's name only. The main factors are simply whose name is on the debt, and whose name is on the assets. If there is no match between the two, the assets are generally safe. If, however, the debt or assets are held jointly--by both you and your spouse--your assets may be fair game."

So, should I keep my student loans in my current name and everything else in my married name.

 

[Ohiogal]

I also found this: "Not necessarily. This is a complicated question, but in general, creditors cannot come after your assets for debts that are in your spouse's name only. The main factors are simply whose name is on the debt, and whose name is on the assets. If there is no match between the two, the assets are generally safe. If, however, the debt or assets are held jointly--by both you and your spouse--your assets may be fair game."

So, should I keep my student loans in my current name and everything else in my married name.

Regardless of what name it is still you and will still have the same social security number -- same person. If you try to say you aren't, that brings up a HOST of other problems which if you want to live with your husband, then you don't want.

 

[loveumms]

Thanks - I wasn't going to try and commit fraud. Just curious if I kept my maiden name if it would make any difference.

I guess we will look into a pre-nup.

 

[Litigation!]

My response:

And, who is going to pay that debt? Just you? Wrong. The payments you're going to make is money that would otherwise be staying in the household. Your husband is going to become quite perturbed, after awhile, making payments, or losing household money, on something he can't "see, feel or touch."

The fact of the matter is you're going into this marriage with a huge piece of baggage (hell, you're going into it with an entire luggage set!), and one that could very well spell the end of your marriage.

Now, I'm NOT saying that you shouldn't obtain an education. I think it's great! All I'm saying is that you're not in a position to maintain a marriage. Talk about the "old ball and chain" - - it's just that your ball and chain is going to be larger than the average person brings to a relationship.

Is that fair to him?

IAAL

 

[Ladynred]

If I sign the loan prior to marriage and something happens to me (either serious illness leaving me disabled or death) would my husband be responsible for the debt I acquired prior to us getting married?

Maryland is NOT a community property state and all of this is YOUR debt, it can NOT be attributed to your husband EVER. Even if you moved TO a community property state, the debt is all pre-marital - he would still NOT be held liable for YOUR debt.

If I consolidate these debts after our marriage, would it then make him responsible (assuming the answer to my above question is he wouldn’t be responsible).

NO !

I am asking these questions because I am contemplating life/disability insurance (which is scary to think about at 23). The last thing I want my future husband to have to deal with is my huge school debts if something happens to me.

Disability insurance on things like loans and credit cards is often a pointless expense and the hoops you have to jump thru in order to get them to PAY if anything DOES happen will make you wish you'd never bothered.

Your husband to be can NOT be held liable for YOUR separate debts.

 

[seniorjudge]

...Disability insurance on things like loans and credit cards is often a pointless expense and the hoops you have to jump thru in order to get them to PAY if anything DOES happen will make you wish you'd never bothered....

I certainly agree with that. What I meant was "regular" STD and LTD policies; never be without them. And also long-term care policies and life insurance.

(No, I don't sell insurance.)

 

[Ladynred]

Yes, I have STD and LTD coverage thru work, as well as life insurance. I have no assets and no children, so additional life insurance for me would be pointless.

 

[seniorjudge]

Yes, I have STD and LTD coverage thru work, as well as life insurance. I have no assets and no children, so additional life insurance for me would be pointless.

You and writer also need durable powers of attorney (healthcare and financial) and wills and (if necessary) living trusts.

I will not bore you with the many times I have seen the existence of these things cause great relief and the absence of these things cause great sorrow.

Well, okay, there was this one time where the heirs in an intestate estate danged near got into a fist fight in the court room over NINE HUNDRED DOLLARS that some of them wanted to use for the establishment of a family cemetery but the rest wanted their share to blow at the casinos.

Good grief....

 

[loveumms]

My response:

And, who is going to pay that debt? Just you? Wrong. The payments you're going to make is money that would otherwise be staying in the household. Your husband is going to become quite perturbed, after awhile, making payments, or losing household money, on something he can't "see, feel or touch."

The fact of the matter is you're going into this marriage with a huge piece of baggage (hell, you're going into it with an entire luggage set!), and one that could very well spell the end of your marriage.

Now, I'm NOT saying that you shouldn't obtain an education. I think it's great! All I'm saying is that you're not in a position to maintain a marriage. Talk about the "old ball and chain" - - it's just that your ball and chain is going to be larger than the average person brings to a relationship.

Is that fair to him?

IAAL

Seriously - what is your problem? Are you trying to be the Dr. Phil of freeadvice forum?

My fiance knows exactly what he is getting into and I want to protect him ... I don't think he sees my debt as "baggage" since he said he's not worried about the debt and is extremely supportive of everything I'm doing to better both our futures. Not only that, I'm pretty sure my salary will allow me to pay back my debt without his help.

He will be reaping the rewards of my salary too. We plan on him being a stay at home dad, since his profession allows him do part time work from home. And he tells me all the time how grateful he is to have that opportunity. I'm pretty sure he wouldn't be able to do that if I wasn't going to make the money I will. So, he will be able to 'see, feel and touch' the benefits from my education (and debt) - he's going to be spending time with our children, watching them grow and knowing that hes not shipping them off to someone else to raise.

Furthermore, he has been extremely supportive of me thus far through my education ... and I'm very lucky to have him. If we were going to break-up b/c of anything it would have been due to the stress of me getting through school. And, that has only made our relationship stronger. Hes a real man and values having a woman with a solid education.

Everyone has some sort of baggage - mine is school debt. He is marrying me b/c he loves me ... and at least in our relationship love is unconditional. Debt or no debt we are getting married b/c we are compatible and love each other.

And, thanks for your input on my education however, you have absolutely no right to say that "I'm in no position to maintain a marriage". I didn't ask you to marry me and I certainly wouldn't marry someone who is selfish ... if I dated someone who was going to wait until I got done paying off my debt I would say good riddens way before even getting close to the altar. Money is important in a relationship but, as they say money doesn't buy happiness! Just wondering - did you recently got a divorce? You seem really bitter - no one would make that sort of comment without a reason. I didn't come on here to get marriage advice - I came on here to find out about the legal aspect of student debt in regards to marriage.

Thanks Ladynred for answering my question. Now I can at least not worry about leaving him with any debts if something were to happen.

 

[Ladynred]

You're welcome and don't bother responding to "Litigation!" AKA IAAL, he's sour grapes all the way and its not worth the effort or aggravation to respond to his ridiculous posts