Who Pays for Student Loans in a Divorce?

 Posted on July 07, 2025 in Property Division

Student loan debt has become a central issue in many divorces, especially when one or both spouses pursued advanced degrees or took out large loans before or during the marriage. For divorcing couples in DuPage County, the question of who pays for student loans after divorce is not always straightforward. It depends on a range of factors, including when the loans were taken out, how they were used, and how property is divided during the divorce process.

Whether you are the spouse who earned the degree or the one who supported your partner’s education, it is important to understand how Illinois divorce courts treat student loan debt. An experienced Wheaton, IL divorce attorney can help you develop a clear financial strategy as you prepare for settlement negotiations or litigation.

Are Student Loans Considered Marital Debt in Illinois?

Under the Illinois Marriage and Dissolution of Marriage Act, property and debts are classified as either marital or non-marital. Only marital property and marital debt are divided during divorce. Non-marital assets and debts typically remain with the spouse who owns them.

Student loans are treated the same way as any other debt. If the loan was taken out before the marriage, it will usually be considered non-marital debt and remain the responsibility of the person who borrowed the money. But if the loan was taken out during the marriage, even if it only benefited one spouse, it may be classified as marital debt and become part of the division process.

That said, classification alone does not determine how the loan will be split. Illinois courts use the principle of equitable distribution, which means debts are divided fairly, not necessarily equally. Judges can take into account the specific circumstances of the loan and how it impacted the marriage before assigning responsibility.

How Do Courts Decide Who Should Repay the Student Loans?

When a judge in DuPage County decides who should repay student loan debt, the decision depends on a variety of factors. The court may look at whether the education provided a financial benefit to the marriage. For example, if the degree led to a higher household income or helped support the family’s lifestyle, the debt used to fund the education is more likely to be attributed to both spouses.

Courts also consider whether one spouse made financial sacrifices to help the other attend school. If one spouse worked full-time or took care of children while the other went to graduate school, that might be relevant. The court may also factor in each spouse’s current and future income, the length of the marriage, and how other debts and assets are being divided.

For example, in some high-income households, a judge may assign a larger share of the marital student debt to the spouse who has the degree and the higher earning potential, even if the loans were technically taken out during the marriage. In other cases, student loans may be split equally or offset by giving one spouse more assets in exchange for taking on more debt.

What If the Loans Were Used for Living Expenses?

Not all student loans are used exclusively for tuition or books. In many cases, student loan funds are also used for rent, groceries, or transportation. If loan money supported the household during the marriage, the debt may be more likely to be considered marital.

That does not always mean both spouses will be equally responsible for repayment. If the person who took out the loan now earns significantly more because of their degree, the court may still assign the debt to them. However, this issue can create complexity in the division of property, and it is wise to work with a skilled divorce attorney who can present a compelling case for your financial contributions and future needs.

How Are Student Loans Handled in High Net Worth Divorces?

In high-asset divorce cases, student loan debt may be just one part of a larger, more complicated financial picture. Families with significant real estate holdings, investments, or business interests may use property division strategies to resolve student loan responsibility without requiring either spouse to continue making monthly payments. For instance, the spouse who agrees to keep the loans might receive a greater share of other liquid assets.

Another consideration in wealthier families is the role of premarital or inherited wealth in paying off educational costs. If student loans were paid using trust distributions or family funds, tracing the source of those payments can affect how reimbursement is handled in the divorce. If the loans were paid off during the marriage with joint funds, but one spouse now wants reimbursement, that could spark a dispute about whether that payment was a gift or an investment.

Ultimately, student loan disputes in high-net-worth divorces often come down to careful financial analysis and persuasive legal arguments. This makes it especially important to have a strong legal team with specific experience handling divorce for high net worth individuals. 

What Can You Do to Protect Yourself if You Have Student Loans and Want a Divorce?

If you are thinking about divorce and student loans are involved, the first step is to collect records and documentation. Show when the loans were taken out, how the money was spent, and what payments were made during the marriage. If you and your spouse agreed to support each other’s education or have a prenuptial agreement that addresses debt, bring that to your attorney’s attention.

It is also important to consider what will happen after the divorce. If your spouse is ordered to pay the loan but the account remains in your name, a missed payment could hurt your credit. Your attorney may be able to negotiate for refinancing, indemnity clauses, or other protections in your divorce decree.

Talk to a DuPage County, IL Divorce Lawyer About Your Student Loan Concerns

Student loan debt is not just a financial issue. It is often tied to years of sacrifice, hard work, and family planning. At The Stogsdill Law Firm, P.C., our Wheaton, IL divorce attorneys help clients protect their future and resolve complex financial matters with clarity and strength. 

Whether you are dealing with six-figure loans from a professional degree or private loans that funded everyday expenses, we will fight to ensure your divorce settlement reflects the full picture. Call us today at 630-462-9500 to schedule your consultation and take the first step toward resolution.