Getting a divorce is daunting, and when you add student loans to the mix, it can become a complicated situation. In Maine, divorce laws address the issue of how to divide debt between spouses during divorce proceedings. In this article, we will discuss how spousal debt is distributed in Maine, specifically for student loans.
How are assets and debts divided in Maine?
Maine follows the equitable distribution principle when it comes to dividing assets and debts during a divorce. Equitable distribution means that property, assets, and debts will be divided fairly between both parties, but not necessarily equally. Maine divorce courts will consider various factors to determine what is fair in a particular case.
Are student loans considered marital debt in Maine?
Student loans are unsecured debts that are usually obtained by one spouse before marriage and paid off after marriage. In most cases, student loans are considered separate debts unless both spouses agreed to pay for it during the marriage. Since only one spouse incurred the debt, Maine divorce courts will usually consider student loan debt as separate, and the spouse who obtained the loan will be responsible for repaying it.
Exceptions to the rule
However, there are some exceptions to this rule. If the student loan debt was incurred during the marriage, and it benefited the couple, such as if one spouse gets an advanced degree and then earns more money to support the family, the court may consider it joint debt. If student loans were co-signed by both spouses, then both spouses are responsible for repaying the debt.
Factors that Maine divorce courts consider
Maine divorce courts consider various factors to determine what is fair and equitable when dividing student loan debt. These include:
Date of the loan
The court will consider when the student loan was obtained if it was before or during the marriage.
Purpose of the loan
The court will consider whether the loan was used for a specific purpose, such as tuition, or whether it was used for other purposes, such as living expenses.
Amount of the loan
The court will consider the total amount of the student loan and if it was used for a specific purpose.
Repayment terms
The court will consider the repayment terms of the student loan, including the interest rate, the length of the repayment period, and the monthly payment amount.
Income and earning capacity of each spouse
The court will consider the current and potential income and earning capacity of each spouse when determining what is equitable.
Financial resources of each spouse
The court will consider the overall financial resources of each spouse, including income, assets, and debts.
Co-signing student loans
If a spouse co-signed a student loan, they are legally responsible for repaying the loan in case of a default. In Maine, co-signed student loan debt is jointly distributed between the spouses. Both parties are responsible for repaying the loan, even if they divorce. If one spouse fails to make payments, the lender can go after the other spouse for repayment.
Conclusion
Student loan debt can cause complications during divorce proceedings. Maine divorce courts will consider various factors before deciding how to divide the debt. In most cases, student loans are considered separate debts, and the spouse who obtained the loan will be responsible for repaying it. However, if the loan was incurred during the marriage and benefited both parties or was co-signed by both spouses, then the loan will be distributed jointly. It is essential to consult with an experienced Maine divorce lawyer if you have student loan debt. They can help you navigate the complexities of divorce and student loan debt.