In Minnesota, property is divided during a divorce based on the concept of marital and non-marital property. Additionally, Minnesota courts will consider both assets of the parties and debts of the parties. To learn more about the distinction between marital and non-marital property, click here.
The Court has wide discretion when dividing property during a divorce, and when determining which party will be solely responsible for repaying a debt, even if it was incurred during the marriage.
So, what about student loans? The general rule is that any student loan debts that one spouse incurred prior to the marriage will be his/her non-marital property. This means that he/she will be solely responsible for repaying the student loans after the divorce.
If the student loan debt was incurred during the marriage, the Court can divide the debt between the spouses as part of the property division. In Minnesota, Courts do not necessarily divide property equally. Rather, Courts award a just and equitable division of property. This means that the student loan debt, other assets and liabilities will be divided between both parties in a manner the court finds is just equitable, not necessarily equally.
If you have any questions about student loan debt in a divorce proceeding, please call me today at 952-800-2025 or reach out via our online contact form to set up your free consultation.
