Dividing Student Loan Debt in an Arizona Divorce: What You Need to Know

Student loans can weigh heavily on a couple during marriage, but the issue becomes even more complicated during a divorce.

Determining who is responsible for student loan debt incurred during the marriage after a divorce is not always straightforward.

The answer depends on when the loan was taken, why it was incurred, and whether it benefited both spouses.

This article explains how Arizona courts typically handle student loan debt in divorce cases, what laws apply, and how a Licensed Legal Paraprofessional can help protect your financial interests during the division of debt.

If you or your spouse has student loans, it is essential to understand how these obligations may be divided under Arizona law.

Table of Contents

• How Arizona Law Treats Debt in a Divorce
• Are Student Loans Considered Marital Debt?
• What Happens to Student Loan Debt After Divorce?
• Real-World Example: Student Loan Debt in a Divorce Case
• How a Prenuptial Agreement Can Affect Student Loan Responsibility
• Important Things to Remember
• 7 Frequently Asked Questions About Student Loan Debt and Divorce
• Contact an Experienced Arizona Divorce Paraprofessional

Stephanie Villalobos, the first Licensed Legal Paraprofessional approved by the Arizona State Bar, leads De Novo Law in guiding clients through all aspects of debt and divorce. Her experience working with clients throughout Maricopa, Pinal, and Pima counties helps ensure a fair resolution when student loans are involved.

How Arizona Law Treats Debt in a Divorce

Arizona is a community property state, meaning most debts and assets acquired during the marriage are considered community property and are generally divided equally during a divorce. This includes community debt such as credit card balances, mortgages, and—sometimes—student loans.

According to A.R.S. § 25-318, the court must “divide the community, joint tenancy and other property held in common equitably, though not necessarily in kind.”

This law applies to debts acquired during the marriage, which may include student loans depending on the circumstances.

However, the court looks at more than just when the debt was incurred. Judges may also consider the purpose of the debt and who benefited from it.

Are Student Loans Considered Marital Debt?

Not always.

Whether student loan debt is considered marital debt depends on:

• When the student loans were taken
• Why were they taken
• Who received the benefit from the education
• If both spouses agreed to or used the loan funds for shared living expenses

Student loans incurred before the marriage are usually treated as personal debt and remain the sole responsibility of the spouse who took them.

However, if the loan was taken during the marriage and used to support the household, a court may view it as a community debt.

The court may also take into account the earning potential that came from the degree.

If one spouse benefited from the other’s higher earning capacity due to a degree paid for by student loans, that might also influence how the debt is divided.

What Happens to Student Loan Debt After Divorce?

When it comes to dividing student loan debt in a divorce, Arizona courts try to be fair but not necessarily equal.

Here are some outcomes that can occur:

• The spouse who took out the loan may be held solely responsible.
• If the loan was used for mutual benefit, it may be considered community property and divided as part of the debt incurred during the marriage.
• The court may order one spouse to assume a greater share of the student loan payments if they also received greater benefits from the loan.

Whether the loan is private or federal, or whether it is secured or unsecured debt, will not usually affect the division, but the court will look closely at the intent and use of the loan during the marriage.

Real-World Example: Student Loan Debt in a Divorce Case

Let’s consider a real-world scenario involving a Tempe couple. Jennifer enrolled in nursing school and took out $60,000 in student loans while married to Mark. During her education, Mark worked full-time and paid most of their living expenses, including rent and groceries.

When they divorced four years later, Jennifer had completed her degree and was earning significantly more. Mark requested that the student loan debt be treated as community debt since he had supported the household.

The court reviewed how the debt was incurred and determined that because the loan funds were used only for tuition and not shared expenses, Jennifer would be solely responsible. However, because Mark had delayed his career progression to support Jennifer, he was awarded a greater portion of the marital assets to balance the outcome.

How a Prenuptial Agreement Can Affect Student Loan Responsibility

A prenuptial agreement can clarify responsibility for student loans before the marriage even begins. If one spouse anticipates going back to school or already has existing student loan debt, the prenup can specify that this debt remains separate property.

Courts in Arizona will generally uphold such agreements as long as they are appropriately written, signed voluntarily, and both parties disclose their financial situations regarding student loans beforehand.

Without a prenup, you may have to prove during the divorce proceedings that the loan funds were not used to benefit the marriage.

Important Things to Remember

• Arizona is a community property state where debts acquired during marriage may be split.
• Student loans taken out before marriage are usually considered separate debt.
• Courts look at how the debt was incurred and whether both spouses benefited.
• A prenuptial agreement can shield one spouse from the other’s student loans during the marriage.
• Not all student loan debt will be divided equally, even if incurred during the marriage.

7 Frequently Asked Questions About Student Loan Debt and Divorce

1. If I co-signed my spouse’s student loans, am I responsible for repayment after divorce?
   Yes. Co-signing makes you legally liable for the debt, even if it’s the other spouse’s education.
2. Can student loan debt be split even if only one spouse benefited?
   Possibly. Arizona courts will review whether the debt was incurred for mutual benefit or household support.
3. Does it matter if the loans are federal or private?
   Not significantly. Courts focus more on when the loans were taken and how they were used.
4. What if my spouse lied about their student loans during the divorce?
   You may be able to seek a post-decree modification or file a motion to reopen the case based on misrepresentation.
5. Will I be responsible for the loans my spouse took before we got married?
   Usually not. Loans incurred before the marriage are typically considered separate property.
6. How can I protect myself from my spouse’s student debt?
   Consider a prenuptial agreement or consult a divorce lawyer or legal paraprofessional before or during the marriage.
7. How can De Novo Law help me with student loan debt in divorce?
   We analyze your financial history, review loan use, and work to achieve a fair division of debt that protects your interests.