Reimbursements for Student Loans Paid During Marriage
Generally speaking, student loan debts are assigned to the party who incurred
them. The community will usually be reimbursed for CP contributions to
the education or training of a party that substantially enhances that
party's earning capacity. However, that reimbursement may be modified
or reduced to the extent that the student party can establish that the
community estate substantially benefited from the education, training,
or loans incurred therefor.
Section 2641 creates a rebuttable presumption that the community has not
substantially benefited from community contributions made less than 10
years before commencement of the dissolution or legal separation proceeding.
Learn More About Dividing and Reimbursing Student Loans!
CALIFORNIA FAMILY CODE
DIVISION OF PROPERTY
REIMBURSEMENTS FOR STUDENT LOAN PAYMENTS
Family Code Section 2641
(a) "Community contributions to education or training" as used
in this section means payments made with community or quasi-community
property for education or training or for the repayment of a loan incurred
for education or training, whether the payments were made while the parties
were resident in this state or resident outside this state.
(b) Subject to the limitations provided in this section, upon dissolution
of marriage or legal separation of the parties:
(1) The community shall be reimbursed for community contributions to education
or training of a party that substantially enhances the earning capacity
of the party. The amount reimbursed shall be with interest at the legal
rate, accruing from the end of the calendar year in which the contributions
(2) A loan incurred during marriage for the education or training of a
party shall not be included among the liabilities of the community for
the purpose of division pursuant to this division but shall be assigned
for payment by the party.
(c) The reimbursement and assignment required by this section shall be
reduced or modified to the extent circumstances render such a disposition
unjust, including, but not limited to, any of the following:
(1) The community has substantially benefited from the education, training,
or loan incurred for the education or training of the party. There is
a rebuttable presumption, affecting the burden of proof, that the community
has not substantially benefited from community contributions to the education
or training made less than 10 years before the commencement of the proceeding,
and that the community has substantially benefited from community contributions
to the education or training made more than 10 years before the commencement
of the proceeding.
(2) The education or training received by the party is offset by the education
or training received by the other party for which community contributions
have been made.
(3) The education or training enables the party receiving the education
or training to engage in gainful employment that substantially reduces
the need of the party for support that would otherwise be required.
(d) Reimbursement for community contributions and assignment of loans pursuant
to this section is the exclusive remedy of the community or a party for
the education or training and any resulting enhancement of the earning
capacity of a party. However, nothing in this subdivision limits consideration
of the effect of the education, training, or enhancement, or the amount
reimbursed pursuant to this section, on the circumstances of the parties
for the purpose of an order for support pursuant to Section 4320.
(e) This section is subject to an express written agreement of the parties
to the contrary.