s/o - Marital consolidation of student loans - anyone know of a way to separate upon divorce? Help!

[Anonymous]

Biggest mistake of my life! Consolidating the loans, that is. Now we're divorcing and after extensive research I have found no way to separate the loans. People can no longer opt for marital consolidation because the government realized the implications in a divorce. The divorce decree won't help me one iota. And he owes a lot more than me. I don't want my credit forever tied to him!

[Anonymous]

If he agreed to pay X percent of the total loan and you agreed to then pay 100 - X, I don't see why that couldn't be put into the divorce decree or whatever other document.

Depending on the amount you could just pay the entire thing off and be done with it. If it's under 10% of your income, you might want to seriously consider doing it.

[Anonymous]

You pay half of all debt just like you would take half of assets, you can't have it both ways.

[Anonymous]

Wow. Huge mistake. But, like anything in a divorce, you just agree to who owes what and hope he complies.

[Anonymous]

The student loan company will not change unless u refinance...

[Anonymous]

There is no way to separate out your loans once consolidated. From the standpoint of the lender you will always be jointly and severally liable. You can agree in your separation agreement what amount you will each contribute to it, however,

[Anonymous]

Anonymous wrote:Biggest mistake of my life! Consolidating the loans, that is. Now we're divorcing and after extensive research I have found no way to separate the loans. People can no longer opt for marital consolidation because the government realized the implications in a divorce. The divorce decree won't help me one iota. And he owes a lot more than me. I don't want my credit forever tied to him!

Will you only take a proportional amount of the assets? Hah didn't think so.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Biggest mistake of my life! Consolidating the loans, that is. Now we're divorcing and after extensive research I have found no way to separate the loans. People can no longer opt for marital consolidation because the government realized the implications in a divorce. The divorce decree won't help me one iota. And he owes a lot more than me. I don't want my credit forever tied to him!

Will you only take a proportional amount of the assets? Hah didn't think so.

Well, since you asked...yes, I would. His are law school loans (approx. $100k), mine are undergrad ($30k). So it's going to take him quite a few years to pay those off. It's the joint & several issue that bothers me. In ten years if he falls on hard times (or simply chooses not to pay), then my credit will suffer. I'm happy to pay off my share or give him the equivalent in assets, but it doesn't remove my name from the loan. And the divorce decree can only state who will be responsible for what portion.

Refinancing sounds like a good option I hadn't considered. I'll have to explore that. Thanks! Op

[Anonymous]

is he willing to refinance under his name? doubt if they would allow u to just take out your portion and remove your name from the original loan.

[Anonymous]

Anonymous wrote:is he willing to refinance under his name? doubt if they would allow u to just take out your portion and remove your name from the original loan.

I will try to negotiate that he refinance the entire amount into his name only while I give him an equal amount in assets.

[Anonymous]

What about death? Can they ever be separated if one partner dies? I hope someone has an answer.

[Anonymous]

Anonymous wrote:What about death? Can they ever be separated if one partner dies? I hope someone has an answer.

I don't think so--at least when we looked into it years ago, that was the reason DH and I didn't consolidate together.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Biggest mistake of my life! Consolidating the loans, that is. Now we're divorcing and after extensive research I have found no way to separate the loans. People can no longer opt for marital consolidation because the government realized the implications in a divorce. The divorce decree won't help me one iota. And he owes a lot more than me. I don't want my credit forever tied to him!

Will you only take a proportional amount of the assets? Hah didn't think so.

Right and she gets 1/2 of his law degree... What a crappy response.


Sorry OP. What kind of salary is he making now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:What about death? Can they ever be separated if one partner dies? I hope someone has an answer.

I don't think so--at least when we looked into it years ago, that was the reason DH and I didn't consolidate together.

Nope. This is why DH and I didn't consolidate.