Payments Made Towards Student Loans May be Reimbursed

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Payments Made Towards Student Loans May be Reimbursed

One of the issues decided in In Re Marriage of Mullonkal and Kodiyamplakkil was whether the community could be reimbursed for the use of community income to pay the wife’s student loans.

During the first few years of marriage, the couple lived modestly so that the wife could pay off her substantial student loans. The husband did not work during the marriage. The wife filed for divorce and the husband requested a reimbursement to the community for the payment of $130,000 of the wife’s student loans.

The family court denied the reimbursement. It stated that in order for the community to be reimbursed for the payment of the student loans, the husband would have had to contribute income to the marriage. Because the husband did not contribute any money, he should not be reimbursed for half of the payment of student loans. The husband appealed.

The appellate court agreed with husband. It held that a spouse does not have to contribute financially to expenses during the marriage in order for the community to be reimbursed for the payments of student loans. Family Code section 2641(b)(1) requires reimbursement for education or training. There is no requirement that a spouse has to work in order for the community to be reimbursed.

fc 2641(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.

If you need legal advice and are looking for a family law lawyer in Orange County to address a dissolution issue such as reimbursement for student loan payments or any other divorce matter such as legal separation, annulment, custody, spousal support, child support, and/or property division, please consider Treviño Law in your divorce attorney search. We are located in Laguna Hills right off Lake Forest exit to both the 405 and 5 freeway.

Although the posting of this information can be considered free legal advice for a divorce in Orange County, it does not address other factors which may play a significant role in a particular dissolution. Circumstances in your divorce may alter the results in your dissolution.

Please note that this legal advice does not establish a family law attorney-client relationship. This is a legal advertisement for Treviño Law, Inc.

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