A multitude of scenarios can emerge in Michigan divorces involving outstanding student debt obligations.
Here’s one: You amassed some level of debt on that climb toward graduation, but your spouse did not. Or, conversely, both of you took out loans.
And here’s another: You are the only signatory on your loan documents. And your impending ex is the stated sole go-to source for repayment on his or her loan.
But, again, maybe it’s the case that you are co-signers.
Bottom line: Where amassed student debt is concerned, things can get complicated.
Especially in a divorce.
That complexity is duly noted in a recent Forbes article, which underscores various student debt-linked factors that can come into play in a marital dissolution and ultimately influence who has continuing payment duties and who does not.
Forbes highlights the key role played immediately by state law. Michigan is an equitable division state, which means that a judge will have the determining say concerning which divorcing party will be on the loan repayment hook (in fact, both might be). The primary determinant will be “fairness,” based on a totality-of-the-circumstances analysis.
The process might in some cases point to a quick and clear conclusion. One soon-to-be ex might simply agree to singly take on the obligation. Maybe both spouses co-signed a loan instrument. Perhaps a prenuptial agreement executed prior to marriage clearly spells out a repayment understanding.
Things aren’t so clear in many cases, though, and a judicial determination must sometimes involve a broad-based analysis of “fairness” that takes account multiple and varied factors.
A proven family law legal team with a deep well of experience in divorce property distribution matters can help a client present his or her most compelling case concerning an asset/debt division outcome. Experienced advocacy can fully safeguard and promote a divorcing party’s legal rights and interests.
