Student loan debt & marriage

[Zurealsoon]

If debt-free young man marries young woman with large College loans, does that debt go on his credit rating?

If they divorce will that debt be split between them?

Will it be a "strike "against the couple tring to buy their first home? Should he buy a home before they marry?

Thanks for any input.

 

[Puffy2]

Her debt becomes his debt. Credit checks will be run on both of you for a home. And if you get divorced, you can argue that the loans were hers when you got married (and a judge may listen) BUT depending on how you conduct your marriage will depend on the decision. (Does she end up staying home with the children - sacrificing her own income potential and job growth to take care of your children? In that case, you will probably be held responsible for her debt - it really all depends and it would have a lot to do with your (and her) attorney and the judge, and possible which state you are from). You could do a prenuptual...or better yet, don't bother getting married until some of these financial issues are worked out. As a married couple, you are no longer "individuals" - you are partners . I guarentee, the money issues are only the tip of the iceberg.

 

[The Mystery Machine]

If debt-free young man marries young woman with large College loans, does that debt go on his credit rating?

If they divorce will that debt be split between them?

Will it be a "strike "against the couple tring to buy their first home? Should he buy a home before they marry?

Thanks for any input.

1) No the debt does not go on his credit rating.
2) Divorce? There is a possibilty it could be split.
3) Your loan will be figured into the equation. It is not a "strike" unless you have not paid.
4) No he should not buy the home without you. You would like your name on the deed as well and if you have income it is figured into your loan amount.

 

[ceiligh1]

I dont know for sure but in our case my dh had no college debt. I had about 20k it has not affected his credit score nor mine for that matter we both have excellent scores. It did not hurt us buying our current house.

 

[golfgal]

I don't have specific answers to your questions but DH and I both had quite a few student loans from school and when it came to buying a house we had a MUCH easier time of it then our friends that didn't have student loans had because we had an established credit rating, a very good one because we paid our bills on time, and they did not have a credit rating. If she has been paying on the loans on time, it isn't a problem, if she hasn't been paying on the loans and is late or in default, you are going to have some problems.

I do have a question though, why are you worried about what might happen if you get divorced? If that is a concern, you might want to rethink getting married.

 

[cyndibelle]

HI there....when we have bought our homes..hubby applies on his own...my name goes on the deed after the mortgage is ours....we both have excellent credit..i just have more debt than he does...it hasnt affected us one bit...and why are you thinking about divorce before your even married ???

 

[mom2grace]

For us everything was kept separate. We live in Indiana and we had been married for a few years.

I made much less $$ than DH, and he didn't need my income to qualify for the mortgage. This also kept him from having my debt (school loan, car loan) being put into the equation for how much we could qualify for.

So, the mortgage was in his name only, however the title was in both of our names. I don't know if this is "normal" or not, we had a conventional loan with 20% down.

But, I am sure I would have been responsible for the mortgage if we had divorced since Indiana is a community property state?

 

[HOGFAN]

DH was in deep doodoo when we married. Since the debt was only in his name, it only affected HIS credit.