QLD Settlement and student loans...

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Sarah Taylor

Member
22 February 2018
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I am currently working through a divorce settlement and the asset pool is negative $110,000.
Part of the debt encompasses a $200,000 AUS overseas student loan. The debt was accrued during our 25 year marriage and funded both my studies and both our living expenses at the time. I am a DR and my husband hasn't worked in 11 years as we have a special needs child. I have full custody of this child now and substantially lower income due to my childs 24/7 needs. I cover all costs of my child. My question is, does the student loan make up a liability in the settlement, this is how I have derived at the negative asset pool?I keep getting differing opinions from lawyers. If it doesn't I would be having to borrow money to pay out my ex. I would struggle to get a loan as my earnings are substantially effected by my parental responsibilities, and have the expense of a 40 hour a week carer to enable me to work days.
The student loan has to be paid when we sell our home and pay out the mortgage. I will already have a $110,000 debt and no assets, as I have no hope in hell that my ex will take on any of the debt. He has no job and is trying to get spousal maintenance out of me. Help, this is all overwhelming.
 

nzlinix2018

Member
23 October 2018
1
0
1
I am currently working through a divorce settlement and the asset pool is negative $110,000.
Part of the debt encompasses a $200,000 AUS overseas student loan. The debt was accrued during our 25 year marriage and funded both my studies and both our living expenses at the time. I am a DR and my husband hasn't worked in 11 years as we have a special needs child. I have full custody of this child now and substantially lower income due to my childs 24/7 needs. I cover all costs of my child. My question is, does the student loan make up a liability in the settlement, this is how I have derived at the negative asset pool?I keep getting differing opinions from lawyers. If it doesn't I would be having to borrow money to pay out my ex. I would struggle to get a loan as my earnings are substantially effected by my parental responsibilities, and have the expense of a 40 hour a week carer to enable me to work days.
The student loan has to be paid when we sell our home and pay out the mortgage. I will already have a $110,000 debt and no assets, as I have no hope in hell that my ex will take on any of the debt. He has no job and is trying to get spousal maintenance out of me. Help, this is all overwhelming.


Hi, Sarah, you should consult your lawyer first. Your student loan may be statuted barred in Australia due to the statue of limitation. Although the student loan may not be statued barred overseas. Do not acknowledge the debt in writing or make any part payment. This step is very very important. If they hand you down an judgment in Australia, please hire a lawyer to set aside the judgment in a timely manner and please a defence of Limitation Act.
 

Rod

Lawyer
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27 May 2014
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OK, what you mean is you are working through a property settlement.

My question is, does the student loan make up a liability in the settlement,

Put it in as a liability and see how you go at court. I can see why some lawyers say it is not a marital debt, at least not all of it, but you argue that it a joint expense and hope the court sees it your way. BTW, in the loan, can you split out the actual student fees from the living expenses? Not saying you should at this stage, but if the pressure is on to exclude the lump sum debt from the marital pool, then the fall back is to include just the educational fees, not the living expenses.

FYI, there is no such thing as statute barring on marital debts in Australia. The family court can go back as far as it wants.
 

sammy01

Well-Known Member
27 September 2015
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There are no hard and fast rules, so no hard and fast answers sorry. Family law is case by case. So one argument, it is your loan, you have the capacity to profit from the qualification. Your debt.
But - There is a good argument to say it was a joint debt, joint agreed upon during the marriage.
which way a judge will decide? Don't know, I'm not a judge