Who Is Responsible for Student Loan Debt After an Illinois Divorce?

 Posted on March 16, 2026 in Division of Property

If you or your spouse had student loan debt before getting married, or took out loans while you were married, you may be wondering what happens to that marital debt when you divorce. The answer is not always simple. 

Whether a student loan ends up as one person's problem or a shared responsibility depends on a few key things, and getting it wrong can cost you. If you are planning to file for divorce in 2026, talking with an experienced Arlington Heights, IL divorce attorney before signing anything could save you from a serious financial mistake.

How Does Illinois Handle Student Loan Debt in a Divorce?

Illinois is an equitable distribution state. That means courts split marital property and debt in a way that is fair, though not always 50/50. Under 750 ILCS 5/503, the Illinois Marriage and Dissolution of Marriage Act, a court must first decide whether a debt is marital or non-marital before figuring out what to do with it. Student loans go through that same process, just like a mortgage or a credit card balance.

The key question the court will ask is: when was the loan taken out, and who got the benefit from it?

When Is a Student Loan Considered Non-Marital Debt?

If a student loan was taken out before the marriage, it is usually treated as that person's own debt. If you finished school before your wedding and have been making your loan payments on your own, those loans will likely stay your responsibility after the divorce. The same usually goes for any loans your spouse took out before you got married.

Things can still get tricky, though. If you and your spouse used shared money to pay down a loan that existed before the marriage, your spouse may argue they are owed something for those payments during property and financial settlement negotiations.

When Can Student Loan Debt Become a Marital Issue?

Loans taken out during the marriage are more likely to be treated as shared debt, even when only one spouse went to school. Courts look at who got the benefit of the money. If one spouse went back to school while the other worked full-time to pay the bills, and that degree led to a higher salary that helped the whole family, a judge may decide it is only fair to split the marital debt.

According to the Education Data Initiative, the average federal student loan balance in the United States is about $39,000 per borrower. That is a large amount of money, and courts treat it seriously when deciding who should pay.

Here are some of the things a court will look at:

• The degree raised the earning power of the spouse who borrowed.

• The other spouse helped pay bills while the degree was being completed.

•  Each spouse's financial situation at the time of the divorce.

• How the loan amount compares to the rest of the marital estate.

The more one spouse's education impacts the couple's shared finances, the more likely a court is to treat that loan as a marital responsibility.

What if My Spouse Agrees to Pay My Student Loans in the Divorce Settlement?

It is common for one spouse to agree to take over certain debts as part of a divorce settlement, including student loans. While this can work out, there is a catch. A divorce settlement is a deal between the two of you. It is not a contract with your loan company.

If the loans are in your name and your spouse stops paying, you are still responsible to the lender. This is especially true for federal student loans, which cannot simply be moved to another person's name. Adding the right protections to your settlement agreement is something an experienced divorce attorney can help you think through before you sign.

Schedule a Free Consultation with an Arlington Heights, IL Divorce Lawyer

Student loan debt is one of the more complex financial issues to work through in a marital debt dispute. Attorney Don Cosley personally handles all aspects of his clients' cases. 

When you call with questions, you will speak directly with him, not a paralegal or subordinate, but the Rolling Meadows, IL divorce lawyer who will be representing you throughout the entire process. The Law Offices of Donald J. Cosley offers free consultations. Call 847-253-3100 today.