What Happens to Medical or Law School Student Loan Debt in a Divorce?

 Posted on July 17, 2025 in Division of Property

Dividing student loan debt during divorce can be one of the most complex financial issues spouses face. Medical and law school loans often involve high balances, and figuring out who should repay them requires careful consideration of Illinois law and the facts surrounding who took out the loans, when the loans were taken out, and who benefitted from them. If you are divorcing in Illinois, working with our Mr. Prospect, IL divorce attorney to understand how Courts handle this issue can help you prepare for the process.

Are Student Loans Marital or Non-Marital Debt in Illinois?

Under Illinois law, debts incurred during the marriage are presumed to be marital, even if they are in only one spouse’s name. However, student loans can present unique circumstances compared to other types of debt, like credit cards or home mortgages. 

If a student loan is taken out before a marriage begins, it is generally considered non-marital debt. The spouse who borrowed the debt will usually remain responsible for paying it after the divorce.

However, if the loan was taken out during the marriage, the Court will decide whether it is fair for both spouses to share responsibility for repayment. According to the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/503), marital property and debts must be divided fairly, though not necessarily equally.

How Do Courts Divide Student Loan Debt?

Judges in Illinois consider several factors when deciding how to divide student loan debt and there is no automatic 50/50 split. For example, the purpose of the loan plays a critical role. If the borrowing spouse earned a degree that benefited the marriage by increasing household income, the Court may find it fair to divide the debt. On the other hand, if the non-borrowing spouse received little benefit, the Court may assign the debt solely to the spouse who attended school.

Judges also look at each spouse’s earning capacity. If one spouse has significantly higher income as a result of their education, they are more likely to be assigned responsibility for the loan.

Although Judges greatly prefer couples to make an agreement about student loans on their own, Illinois Courts have the power to divide debts in a manner they deem equitable. 

Responsibility for Co-Signed Loans After Divorce

If both spouses co-signed for a loan, both remain legally responsible for repayment even if the Court assigns the debt to one spouse. The lender is not bound by the divorce decree and may pursue either co-signer for payment. That being said, if a spouse is assigned the responsibility to repay debt in the divorce decree and does not, that spouse can face serious consequences from the Court. 

Contact a Northwest Cook County, IL Divorce Lawyer

If you are facing divorce and worried about student loan debt, you need the help of a Mt. Prospect, IL divorce attorney who understands Illinois property division laws. At The Law Office of Nicholas W. Richardson, P.C., we offer free consultations and will provide experienced guidance on protecting your financial future. Call us today at 847.873.6741 to schedule a time to discuss your case.