US spouse has student debt. If I move there, am I liable?

[SCOREAU 36]

2 minutes ago, Jorgedig said:

https://studentaid.ed.gov/sa/repay-loans/default   <-----  Just in case you thought there were no consequences for defaulting on student loans in the US.

Thank you. I'll read it.

[Lemonslice 4,549]

It's easy to say you'll retire early and live a better/more financially secure life as a family when you/she hasn't been paying her debt. 

Mathematically, we'd all be much better off not paying debts and saving that money instead lol.

 

 

 

 

[tsabbas 47]

2 hours ago, adil-rafa said:

you are not even if you divorce but if she passes away,  any debts must be paid from her estate 

 

you may want her to get a life insurance policy to cover these

For most debts, this is true. However, a student loan from the federal government (not private student loans you obtained yourself or refinanced) is discharged upon death. 

 

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/death

 

Depending on how much the loans are, if your spouse isn't working she can probably get a forbearance, If she is, she can go on the income based repayment plan which is usually very affordable. If the loans are large though, the payment may not even cover the accruing interest in which case the loan balance just gets larger.

 

She should contact her loan servicer and get all the details and options. I have found them to be very open to working with people.

 

Edited June 9, 2019 by tsabbas

[SCOREAU 36]

4 minutes ago, SCOREAU said:

Thank you. I'll read it.

I had a read. Basically, the property in America would be in my name and we'd have separate accounts.

[SCOREAU 36]

6 minutes ago, Lemonslice said:

It's easy to say you'll retire early and live a better/more financially secure life as a family when you/she hasn't been paying her debt. 

Mathematically, we'd all be much better off not paying debts and saving that money instead lol.

 

 

 

 

It was a debt incurred many years ago. Cutting to the chase, I am not risking it. End of.

[SalishSea 16,744]

2 minutes ago, SCOREAU said:

I had a read. Basically, the property in America would be in my name and we'd have separate accounts.

You're married and have no credit history here.  Her bad credit will affect you, even if you attempt to keep things "separate."  Also in some states, marital property is marital property.

Just now, SCOREAU said:

It was a debt incurred many years ago. Cutting to the chase, I am not risking it. End of.

So?  Does not matter when it was incurred, she is still responsible for paying it.  

[SCOREAU 36]

1 minute ago, Jorgedig said:

You're married and have no credit history here.  Her bad credit will affect you, even if you attempt to keep things "separate."  Also in some states, marital property is marital property.

Well, it's all looking like a 'not going' situation. Thank you for your invaluable info. An hour well spent.

[SCOREAU 36]

12 minutes ago, Lemonslice said:

It's easy to say you'll retire early and live a better/more financially secure life as a family when you/she hasn't been paying her debt. 

Mathematically, we'd all be much better off not paying debts and saving that money instead lol.

 

 

 

 

Yes, it's easi -er.

[SalishSea 16,744]

3 minutes ago, SCOREAU said:

Well, it's all looking like a 'not going' situation

Probably for the best, as I'm sure she also has not been filing US taxes, as required for Americans living abroad.  https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-filing-requirements

[Falcon Cara 377]

19 minutes ago, Jorgedig said:

You're married and have no credit history here.  Her bad credit will affect you, even if you attempt to keep things "separate."  Also in some states, marital property is marital property.

So?  Does not matter when it was incurred, she is still responsible for paying it.  

Just do a Prenup and keep everything separate and don't put her on his Credit Card, and don't apply together for any credit.  This will keep the credit scores separate.  One person can file for bankruptcy and it won't effect the other parties credit score, or at least that how it works in Texas which is a community property state.

[Jeanne Adil 1,651]

33 minutes ago, tsabbas said:

For most debts, this is true. However, a student loan from the federal government (not private student loans you obtained yourself or refinanced) is discharged upon death. 

 

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/death

 

Depending on how much the loans are, if your spouse isn't working she can probably get a forbearance, If she is, she can go on the income based repayment plan which is usually very affordable. If the loans are large though, the payment may not even cover the accruing interest in which case the loan balance just gets larger.

 

She should contact her loan servicer and get all the details and options. I have found them to be very open to working with people.

 

that is true of federal loans only

 

According to the U.S. Department of Education, if the borrower of a federal student loan dies, the loan is automatically canceled and the debt is discharged by the government. Unfortunately, private student loansdo not offer the same liability protections

[SalishSea 16,744]

12 minutes ago, Falcon Cara said:

Just do a Prenup and keep everything separate and don't put her on his Credit Card, and don't apply together for any credit.  This will keep the credit scores separate.  One person can file for bankruptcy and it won't effect the other parties credit score, or at least that how it works in Texas which is a community property state.

Prenup?  OP is already married.

[gregcrs2 1,777]

OP, just being curious so answer at your discretion.  When did you find out about her student loan debt, prior to marriage or after marriage?  

[HRQX 4,145]

4 hours ago, SCOREAU said:

her student debt ( alot of money )

How much is private loans? https://www.sofi.com/learn/content/what-happens-if-you-just-stop-paying-your-student-loans/ "Is there a student loan statute of limitations?"

[SunflowerSweet 1,321]

1 hour ago, Falcon Cara said:

Just do a Prenup and keep everything separate and don't put her on his Credit Card, and don't apply together for any credit.  This will keep the credit scores separate.  One person can file for bankruptcy and it won't effect the other parties credit score, or at least that how it works in Texas which is a community property state.

A decade into a marriage is a little late for a prenup.

 

OP,  you say you want what’s best for your family, but does your wife’s opinion get factored into that at all? Her family must mean quite a lot to her if she is willing to give up what you seem to see as an escape from all that debt to be with them again. She was willing to move to a new country for you, but you don’t seem to be on the same page when it comes to making that “sacrifice” for her?