Managing Large Student Loan Debt in a Texas Divorce

 Posted on July 21, 2025 in Divorce

Student loan debt has become an increasingly common issue in Texas divorces. As the cost of higher education continues to rise, many spouses enter marriage with significant student loan debt or take on loans during the marriage. Then, when couples divorce, there can be serious disagreements over who should be responsible for repayment. Understanding how Texas law treats student loan debt as part of marital property during divorce is essential for protecting your financial future.

Our Collin County, TX divorce attorneys are here to help you manage your student loan debt division and every other issue that comes up in your divorce. 

How Does Texas Law Treat Student Loan Debt in Divorce?

Texas is a community property state, which means that all assets and debts acquired during the marriage are generally considered to be owned equally by both spouses. However, student loans can present unique challenges. Whether student loan debt is divided depends on when the loans were incurred and how the funds were used.

• Loans Before Marriage: If a spouse took out student loans before the marriage, Texas law typically considers this separate debt. The borrowing spouse is usually responsible for repayment after divorce.

• Loans During Marriage: If one spouse took out student loans while married, the Court may view the debt as community property, especially if both spouses benefited from the education (e.g., higher income during the marriage). However, if the education only benefited the borrowing spouse, the Court may assign the debt solely to that spouse.

Under the Texas Family Code Section 7.001, courts have a lot of flexibility in dividing community property and debts "in a manner that the court deems just and right." This means judges are not required to split debt 50/50 and may assign debt based on fairness and the circumstances of the case.

What Factors Do Texas Courts Consider When Dividing Student Loan Debt?

When determining whether to divide student loan debt in a divorce, Texas judges consider several factors. First, they will look at the purpose of the debt. Was the education intended to benefit both spouses or just one? Next, they will look at who benefited from the debt. Did the non-borrowing spouse enjoy a higher standard of living due to the borrowing spouse’s degree?

Another major factor courts will consider is the earning capacity of both spouses. Does the borrowing spouse now earn significantly more as a result of the education, and would splitting the loans 50/50 be seriously unfair to the lesser-earning partner? The answer to each of these questions will affect the outcome of the student loan division. 

Can Student Loan Debt Be Offset in Property Division?

In some cases, a judge may offset student loan debt by awarding the non-borrowing spouse additional marital property. For example, if the borrowing spouse is assigned responsibility for student loans, they may receive a larger share of other assets such as retirement funds, vehicles, or the couple’s home.

Alternatively, if both spouses co-signed on private student loans, they may remain jointly liable to the lender regardless of how the debt is divided in divorce. This highlights the importance of working with an attorney to understand your rights and responsibilities before you file for divorce.

Contact a McKinney, TX Divorce Lawyer

If you are going through a divorce and are concerned about how student loan debt will be handled, an experienced Collin County, TX asset division attorney can help you understand Texas community property laws. At The Ramage Law Group, we are available for consultations to discuss your case and protect your financial interests. Call us today at 972-562-9890 to learn more.