FC section 2641 - Educational Reimbursements

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 were made.
(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.

Testimonials & Endorsements

  • “Michael Peterson handled this case professionally from mediation to the final orders. Over the 15 month process he helped me view things from a non-emotional stand point which made everything less ...”

    - Demetria R.
  • “Found Mr Arnold to be very level headed and very brave to take on my divorce. He acted very professionally all the way through. Worked very well for us. We used the collaborative process."”

    - Lee M.
  • “When my divorce went to trial, it became imperative for me to hire an attorney. I live in Georgia, so I had to do over the phone consultations. When I spoke with Mr. Arnold, it just "felt right" and I ...”

    - Michelle H.
  • “Thurman is that rare attorney who promotes cooperative, non-adversarial divorce. Where many attorneys exacerbate conflict because it inevitably results in legal fees, Thurman promotes resolution and ...”

    - Stephen J.
  • “Just wanted to thank you for your website. It's encouraging to find attorneys who seem to care. I am working at organizing a conference in Las Vegas to train attorneys to 'do it right for the ...”

    - Danielle D.
/

Contact Us

Call (760) 320-7915 or Fill Out This Form

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • Yelp
  • Super Lawyers - Thurman
  • Avvo Rating - Superb Top Divorce Attorney
  • AV Preeminent - 2015
  • Super Lawyers - Michael
  • AAML
  • Coachella Valley's Top lawyers
  • Client Distinction - Thurman
  • California Certified (CBLS)