Professional Degrees and Licenses and the Impact on Divorce

Occasionally, one or both spouses will have obtained professional degrees or licenses either before or during the marriage. It is important to understand what impact those professional degrees, and any loans associated with them, have on the divorce. 

Professional degrees and licenses that are obtained during the marriage are not considered a divisible marital asset. In re the Marriage of Weinstein, 128 Ill.App. 3d 234 (1st Dist. 1984). However, if the professional degree or license held by a spouse was earned during the marriage through the financial support of the other spouse, this may make a difference in how the marital estate is divided between the parties. Id. at 245. One spouse having a professional license or degree may also be relevant when determining matters of support, such as maintenance and child support. 

Oftentimes, professional degrees and licenses bring student loans into play as well. It is common that individuals will receive student loans from higher education that follow them into marriage and occasionally divorce. This raises the question, who is responsible for the student loan debt after a divorce?

It seems clear that student loan debt that is incurred before the marriage would be the non-marital debt of the spouse who incurred the debt and therefore is their responsibility. However, what happens when a spouse incurs student loan debt during the marriage?

Case law helps give some guidance to answer the question. As stated above, the professional degrees and licenses are not considered marital assets subject to division. However, the court in In re the Marriage of Thornley states, “the loans associated with those licenses and degrees can be subject to division and therefore those obligations should remain with the license or degree holder.” 838 N.E.2d 981,985 (Ill. App. Ct. 2005). In short, the student loan debt will be assigned to the party who incurred the debt, and will not be the responsibility of the other spouse. 

Another consideration is even student loan debt incurred before the marriage may be considered marital debt if the loans are refinanced during the marriage to be placed in both parties’ names. The non-marital debt may be considered to have transmuted to marital debt in these instances.

Our firm often recommends prenuptial agreements to parties prior to marriage in order to avoid being responsible for another’s debts in the event of a divorce. The Law Office of Erin M. Wilson LLC can assist you in crafting prenuptial or postnuptial agreements to address the issue of student loans or can assist you in your divorce proceedings. Contact The Law Office of Erin M. Wilson LLC at (312) 767-4220 for a complimentary consultation.

NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.