Will I be responsible for half of my wife’s school loan when we divorce?

Additional Information:

My wife took out a loan so she could start her own business.   She had hoped to apply earnings toward the mortgage on our North Reading home, and stuff for the kids.  We are now getting a divorce and besides writing a business plan, she hasn’t launched her business.  Will I be liable for half of the loan?

ATTORNEY ANSWER:

The answer is maybe.  In terms of the divorce itself, if you are not getting an interest in the business, it would likely not be considered equitable for you to be responsible for the loan.  The problem, however, is that the lender is not going to let you off the hook merely because you were divorced if you co-signed for the loan.  Any settlement reached should include a provision that your wife has a set amount of time to remove you from the loan by either assuming the loan or obtaining a new loan to pay off or refinance the original loan. 

The North Reading Divorce attorneys at Berid & Schutzbank provide legal counsel regarding division of property and all  matters related to divorce.  The attorneys serve individuals and divorcing couples in North Reading and the nearby towns including Andover, North Andover, Tewksbury, Chelmsford and Westford.