How Divorce Affects Student Loans

After completing a bachelor of arts in English at the University of Texas, Matthew Obermeier studied law at St. Mary's University School of Law in San Antonio, earning a juris doctor in 2008. Since 2016, Matthew Obermeier has been a partner in Oliva, Saks, Garcia and Curiel, LLP, a Texas-based law firm focusing on real estate litigation and family law.

In family law, divorce is one of the most common situations faced by clients. Around 50 percent of marriages end in divorce, affecting a couple’s financial obligations, including student loans. Texas is a community property state, so when couples file for divorce, their assets, as well as their debts, are divided and distributed evenly. However, in the case of student loans, the distribution is dependent on whether the loan is classified as separate property or marital property.

The Texas Family Code identifies an asset as separate property if a spouse acquired it as a gift or inheritance, obtained it prior to his or her marriage, or incurred it from a personal injury case during the marriage. Debts are evaluated similarly. For a student loan to qualify as separate property, proof must be presented that the debt existed before the marriage. Otherwise, both spouses will share the debt equally.

Procedural Differences between Contested and Uncontested Divorce

Accomplished San Antonio, Texas, attorney Matthew Obermeier possesses a diverse legal background in the areas of real estate, probate, and family law. As a partner for the Texas law firm Oliva, Saks, Garcia & Curiel, LLP, Matthew Obermeier is highly experienced in working with clients going through divorce.

In Texas, divorces are considered contested if either party disagrees with how to divide assets, debt liability, or child custody arrangements. While many divorces are initiated as uncontested, disagreements can arise that require the help of an attorney, especially if the divorcing couple has children. In both cases, one party must file a petition of divorce and notify their spouse. In uncontested divorces where both parties agree on all relevant terms, the divorce is generally finalized after a 60-day waiting period by a judge. 

Contested divorces go through a more prolonged process that includes discovery and pretrial motions. During this period, each party’s attorney will gather evidence to build a case to support the client’s preferred terms. This can be followed by a series of negotiations that can eventually lead to a settlement. If a settlement is not reached, the divorce will be tried before a family law judge.