RNZ Interview: We've split up! Is our student loan debt considered relationship property?

Relationship breakups are tricky when it comes to deciding how to compensate someone for time they spend out of the workforce looking after kids.  A lot of people wouldn't be able to do the work they do if they didn't have someone at home supporting that side of family life.

I was recently interviewed for a RNZ Podcast called No Stupid Questions with Susan Edmunds. Here is how I responded to this listener question:

Question: If, when you're married with kids, say one person pays off their student loan debt due to working more years and hours while the other person was the day to day caregiver of the children and as a result reduced their work years and hours and so didn't fully pay off their student loan debt while the couple were together, then what happens if they separate and what should happen to the remaining student loan debt? We both acquired the debt the same year that we entered the relationship.  I am in a situation where my ex is refusing to allow my student loan debt to be included in relationship property in the divorce settlement.  It seems incredibly unfair.

Answer: If the debt was incurred before the relationship, it's usually separate and not relationship debt.  To be relationship debt, it needs to be incurred jointly or by one person for the benefit of both.  That could be things like borrowing to pay for living costs while studying and similar expenses.

If the debts are both incurred in the relationship, then there needs to be consistency in the way they're dealt with.

You can listen to the RNZ Podcast here.

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