Hypothetical question - re: student loan/divorce

[marcie26]

If someone has a student loan in her name and the husband is a co-signor - they then get divorced - does the woman have to pay all that back herself or is the husband responsible for half?? Sorry, not bankruptcy related

OOPS, I forgot there is a student loan forum now - sorry, I don't know how to move it?

[BassBoy]

OOPS, I forgot there is a student loan forum now - sorry, I don't know how to move it?

Thread relocated.....

[marcie26]

Thanks!

[lrprn]

If someone has a student loan in her name and the husband is a co-signor - they then get divorced - does the woman have to pay all that back herself or is the husband responsible for half?? Sorry, not bankruptcy related

If the husband co-signed on the student loan, then he agreed to be equally responsible for paying back the debt. If the ex-wife stops paying on the student loan, then the lender will turn to the husband to pay the remaining balance with continuing interest.

A possible exception might be if the student loan was given to the ex-wife 100% in the divorce settlement. If this is the case, then the husband is well-advised to work with his original or a new divorce attorney to see what can be done if the lender does come after him for payment.

Although you said bankruptcy was not involved, if bk does become involved in the future, divorce and bankruptcy often make a very uneasy mix. Legal help is typically needed to sort out who is responsible financially for what because the state and national laws do overlap and can sometimes create conflicts.

[ThreadsSnapping]

A possible exception might be if the student loan was given to the ex-wife 100% in the divorce settlement. If this is the case, then the husband is well-advised to work with his original or a new divorce attorney to see what can be done if the lender does come after him for payment.

Actually, he would still be liable for the loan and they can come after him for it. They have a contract that says he will pay them and will go after him full force if they think they can get payment from him. It doesn't matter to the lender what the divorce decree says. The divorce decree is between the spouses and has no legal bearing on the original contract. He would have to sue her for anything he paid.

TS

[HHM]

Strictly speaking, the husband was never liable for half. As a co-signer, the husband acts as a guarantee to the lender if the wife defaults. Thus, as others have said, both husband and wife are 100% responsible or the debt. However, in the lenders eyes, the Wife is "primary" and the husband is secondary. The husband only becomes responsible for the debt if the wife stops paying.