EDUCATIONAL LOANS AND DIVORCE

When one spouse incurs educational loans during the marriage, these educational loans ARE considered marital liabilities subject to equitable distribution between the parties at the time of divorce. This is true even though the other spouse receives no future benefit from the other spouse’s income due to his or her education during the marriage. Therefore, student loans are subject to equitable distribution along with other marital liabilities. Also, if for example, the Husband had $30,000.00 in student loans and the Wife had $26,000.00 in student loans at the time of divorce, it would be inappropriate for each party to pay his or her own loans. Instead their loans would be combined along with other marital debt and divided equally between the two parties. If student loans were the only marital debt the parties had, then the parties would be each responsible for a total of $28,000.00 in loans or marital debt.

ENGAGEMENT RING/WEDDING RING - MARITAL ASSETS OR NOT

The engagement ring is not considered a marital asset when it is exchanged in promise for marriage and the marriage actually occurs. If the parties do not follow through with the marriage, then the engagement ring should be returned to the party giving the ring to the bride-to-be. The party giving the engagement ring has a legal right to the return of the engagement ring if the marriage does not occur regardless of who cancels the wedding. If the bride-to-be refuses to return the engagement ring, the giver of the ring has the legal right to file a lawsuit to enforce the return of the ring and will likely prevail.

In a divorce proceeding, the engagement ring is the Wife’s sole property and not considered a marital asset of the parties subject to equitable distribution. This also applies to the Wife’s wedding ring and the Husband’s wedding ring respectively. These rings are considered gifts from Husband to Wife and vice-a-versa and remain each party’s sole property and are not a marital asset for consideration in the division of the parties’ assets.