Your child has been accepted by a college, which is probably a relief to you. However, as a divorced parent there is another issue to consider; how do you and your ex-spouse split the cost of your child’s college expenses? States do not make parents obligated to pay for a child’s tuition and college expenses, and these matters are usually not covered in child support orders. Still, the courts may choose to enforce agreements in a divorce decree which require one or both parents to pay for college. To make dividing college expenses easier for you and your ex, there are some tips you should consider while you are going through the divorce process, and for parents who are already divorced.
- Talk about finances in general for your family. Talk with your spouse about what makes most financial sense for your family, and ask yourself questions about what you can realistically commit to college expenses. For instance, though many financial experts discourage incurring debt as much as possible, that may be the most realistic and beneficial route for your child. Consider what resources you can draw upon, such as 529 plans and scholarships. When having this initial discussion, you will also want to spell out exactly what college expenses you need to cover in addition to tuition, such as room and board, books, supplies, transportation, and allowance. Be as clear as possible, and determine if there will be a cap on expenses.
- Address colleges expenses in your Marital Separation Agreement. In a marital separation agreement, splitting college expenses right down the middle is a common route, and is usually feasible as long as both parents have similar income levels or assets. If the parents do not have similar incomes, it may work better to split the costs proportionally to income. In some cases, parents may agree to “agree not to obligate,” which means they are only agreeing to contribute to the education expenses “to the best of ability.” This is allowed, since again there is no obligation for parents to pay for a college education, and parents who are financially insecure may not be able to commit. However, since you are openly expressing that you would like to contribute to the college costs, choosing this route is leaving the door open for future discussion and possible conflict. Do not hesitate to enlist the help of a mediator or financial planner.
- Coordinate filling out aid forms. The Free Application for Federal Student Aid (FAFSA) is a form used by colleges to determine if they are eligible for aid, and the amount of aid. It is an important part of figuring out college expenses for many families. For divorced families, the aid forms include only the information of the parent with which the child lives with the most. If the child is living with both parents equally, it is usually best for the parent with the lower income to fill out the FAFSA. Filling out these forms for the first time can be difficult, and the process of paying for tuition can be all around overwhelming. Usually, students are assigned financial advisors to help them with these matters. Be sure to consult with them for any questions you have.
