Student loan debt is one of the most common and complicated financial issues couples face during divorce. Who should be responsible for paying them after a divorce?
In Minnesota, the student loan division isn’t automatic. It depends on when the debt was incurred, who benefited from the education, and how the loans contributed to the couple’s overall financial picture.
How do Minnesota courts divide student loan debt? What “community vs. separate benefit” means, and how to protect yourself during property division.
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How student loan debt is treated in Minnesota divorces
Minnesota is an equitable distribution state, not a community property state. That means the court divides marital property — and marital debt — in a way that is fair, not necessarily equal.
Under Minn. Stat. § 518.58, the court must make a “just and equitable” division of marital property and debts after considering each spouse’s contributions, economic circumstances, and the marriage’s length.
What counts as marital vs. nonmarital debt
- Marital debt: Incurred during the marriage, regardless of whose name it’s in, if it benefited the household.
- Nonmarital (separate) debt: Incurred before marriage or solely benefits one spouse without benefiting the family.
Student loans fall into a gray area because they may benefit both spouses — or only one.
The “community vs. separate benefit” test
Minnesota courts use a “community vs. separate benefit” analysis to decide who should bear responsibility for student loan debt. The key question:
Did the education financed by the loans benefit the marriage (community benefit), or did it primarily benefit only one spouse (separate benefit)?
1. Community benefit (marital debt)
If the education increased the household’s income, stability, or lifestyle during the marriage, the court may treat the debt as marital.
Examples:
- A spouse earns a degree that leads to higher income supporting both partners.
- Student loans paid household bills while one spouse studied.
- The degree was obtained early in the marriage, and both spouses enjoyed the financial benefit for several years.
In these cases, the court may divide the debt between both parties, even if only one spouse took out the loan.
2. Separate benefit (nonmarital debt)
If the education primarily benefits the degree holder after the divorce — and the other spouse didn’t share in the income or career advantages — the debt is likely nonmarital.
Examples:
- The loans were taken near the end of the marriage.
- The other spouse didn’t experience any increase in household income.
- The education wasn’t used for the family’s financial support.
In this scenario, the spouse who earned the degree will likely keep the debt.
For more background on Minnesota’s equitable property division, visit Martine Law’s divorce page.
Factors Minnesota courts consider
Every case is unique. Judges look closely at the circumstances surrounding when and why the debt was incurred.
Key factors include:
- Timing: When the loans were taken (before, during, or after marriage).
- Purpose: Whether the education supported or improved the family’s financial situation.
- Duration of benefit: How long the couple shared in the career or income benefits.
- Each spouse’s financial circumstances: Who has the greater ability to repay the loans.
- Other marital property division: The overall fairness of the final property split.
- Any agreements: Prenuptial or postnuptial terms assigning debt responsibility.
Contact a defense lawyer today.
How to strengthen your position during debt division
Whether you want to share or separate responsibility for student loan debt, documentation matters.
Steps to take:
- Gather loan statements and timelines – Show when loans were taken, how they were used, and what portion was paid during the marriage.
- Track income and financial contributions – If the degree increased household earnings, keep proof (W-2s, tax returns, bank statements).
- Identify marital payments – Note any loan payments made from joint accounts.
- Explain household benefit – Be ready to describe how the education supported family life or improved financial stability.
- Consult a Minnesota divorce attorney – A lawyer can help you argue whether the debt is marital or separate, negotiate a fair outcome, or draft a settlement agreement that protects you.
Explore more about property division in Minnesota divorces.
When both spouses have student loans
If both partners owe student loans, Minnesota courts will analyze each separately. Sometimes the judge offsets the total amount — assigning more debt to one spouse while giving them more assets to balance the division.
However, if one spouse co-signed the other’s loans, they remain legally responsible to the lender, regardless of what the divorce decree says. In that case, your attorney may recommend refinancing or indemnification clauses to protect your credit.
Key takeaways
- Minnesota divides student loan debt equitably, not necessarily equally.
- Courts use the community vs. separate benefit test to determine fairness.
- If the education benefited both spouses, the debt may be shared.
- If it primarily benefited one spouse, that spouse likely keeps the debt.
- Documentation, timing, and clear legal arguments are critical in these cases.
If you’re facing divorce in Minnesota and need guidance on dividing student loan or other marital debt, Martine Law can help. Our attorneys understand how to protect your financial future and negotiate fair property settlements that reflect your contributions and needs.
Contact Martine Law today for a confidential consultation.