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I have a question about student loan debt incurred before a…

I have a question...

I have a question about student loan debt incurred before a marriage that was paid off during the marriage and if that is considered during the division of assets in Arizona.

Lawyer's Assistant: Because family law varies from place to place, can you tell me what state this is in?

Arizona

Lawyer's Assistant: Has anything been filed or reported?

Yes the divorce is complete but the $50,000 debt was not taken into considering during the division of assets.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Nope that it!

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Answered in 5 minutes by:
2/15/2018
Gerald-Esquire
Category: Family Law
Satisfied Customers: 5,107
Experience: Over 30 years of experience.
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Hello,
Thank you for using Just Answer. Please bear with me while I review your question. I will respond fully shortly. Thank you for your patience.

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Customer reply replied 2 months ago
The million dollar question is.... if I petitioned the court in Arizona, am I legally entitled to recover half of the $50,000 student loan debt my ex spouse brought into the marriage because it was not taken into consideration during the divorce settlement.

Hello,

Thank you for your patience and thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow-up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

If the debt has been completely paid off during the marriage and prior to filing for divorce it is not a debt or an asset to be divided in the course of the divorce. It is a nullity in that regard.

BUT it maybe a factor to be considered in regard to spousal support. The marital assets were used to provide an increased opportunity of the spouse who incurred the debt. There may be a comparative increase in earning capacity as a consequence of the education which was paid for (after the fact) by marital assets. So it should be a factor to be considered in regard to spousal support.

See:

https://www.azleg.gov/ars/25/00319.htm

https://www.divorcenet.com/resources/divorce/spousal-support/understanding-and-calculating-alimony-ar

I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow-up questions, feel free to ask.

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Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Kind regards,

Gerald

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Here is a law review article that discusses these issues in greater detail

http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=2303&context=wmlr

Kind regards,

Gerald

(Please do not forget to rate me – click the five stars. It adds nothing additional to your costs, but it helps me greatly. Plus it is good Karma for you. Thank you.)

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Customer reply replied 2 months ago
Thank you. I suppose that the fact that we took a 2nd mortgage out during the marriage to pay off the debt and paid off that mortgage during the marriage and the fact that the house is an asset isn’t going to make any difference??

The House is the main asset. The contributions to that asset are marital and will be divided under Arizona's Community property laws. The student loan debt was wrapped into that.

The debt no longer exists so it will not be a consideration in dividing assets.

Kind regards,

Gerald

(Please do not forget to rate me – click the five stars. It adds nothing additional to your costs, but it helps me greatly. Plus it is good Karma for you. Thank you.)

Gerald-Esquire
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Satisfied Customers: 5,107
Experience: Over 30 years of experience.
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