College Education
A college education can very well be one of the largest expenditures a parent will undertake on behalf of a child. Currently tuition for a private college education in the United States, including room and board, can run upwards of $50,000 per year. If the cost of books, spending money, clothing and other necessities is also factored into the equation, the final price tag for a four year education at a private institution could very well run in excess of $250,000. Many parents recognise the benefits of helping their children with the financial burden that a college education entails. Others, however, do not see the need to cover any of the costs associated with higher learning. If tension in this regard existed during a marriage, it will be exacerbated by the divorce. Ideally, the economic upheaval created by a divorce should not effect a child’s ability to attend college. A clear determination with regard to each parent’s responsibiliy regarding college expenses should be set forth in the divorce decree or settlement agreement in order to avoid arguments during the application process.
A divorce can result in one parent carrying the burden of college tuition alone. If a settlement agreement can be reached, it is important to detail the responsibilities of each parent for college expenses in a clear and concise manner. Generally the terms of your agreement in this regard will be honored. Remember that the costs of state schools are substantially lower than the tuition of private institutions. Therefor, a separation agreement should specifically account for the actual costs of the child’s higher education.
It is important to discuss the applicable state laws in this regard with your attorney. Some states will require each parent to contribute to college costs while others will not. Educational expenses are paid in addition to, rather than instead of, child support.
A parent’s responsibility for all or part of college expenses as set forth in a settlement agreement or divorce decree can not be covered by a child’s assets. Therefor, if a child has assets which can be used to cover all or part of the expenses related to higher education, a specific reference should be made to them in any agreement or decree in order to alleviate the economic strain on the parents. In the alternative, if either or both parents have the means to support their children through college they may want to consider whether depleting their offspring’s account for this purpose is really necessary. Finally, children’s assets can effect the amount, if any, of financial aid they can receive.
Understand your ex spouse’s personality. There are parent’s who will reconsider their position with regard to college expenses if approached by their children once the divorce has been finalized. If an ex spouse’s economic situation has improved he may be especially amenable to helping his children regardless of the wording of the separation agreement or divorce decree. On the other hand, many ex spouses will stand firm and refuse economic aid that is not explicitly set forth in an agreement. Remember that there is no certainty that your ex will be flexible in this regard. An agreement that specifically addresses the issues relating to your children’s higher education is imperative.