The issues relating to a divorce will have a direct impact on your children. Their living situation and emotional stability will be affected. Additionally, the lifestyle they enjoyed while their parents remained together will change.
Children of divorce will often feel they are at fault for their parents’ separation. I have previously spoken about providing outside care to your children, such as a psychiatrist, if they seem to be struggling. However it is also important that your children feel comfortable talking to you about the divorce and its consequences for them. This does not mean that parents should discuss the negative aspects of their relationship. Rather, each parent should demonstrate their support of their children and continually assert that the divorce was not their offspring’s fault. Additionally, parents should be open to answer questions in a positive manner and provide a comfortable forum for their children to express their concerns.
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. (more…)
Generally, assets held by your children will not be included as marital property for distributive purpose upon divorce. Essentially, any property held by your offspring will be treated as any other third party asset. Issues arise in cases where parents hold property intended for their minor children without properly giving up control of the asset. Certainly, parental involvement is necessary where a minor’s property is concerned however the assets should be clearly earmarked as belonging to the children rather than remaining in the sole name of the parent.
Custodial accounts, such as those established pursuant to UGMA (Uniformed Gifs to Minors Act) or UTMA (Uniform Transfers to Minors Act), are intended for the benefit of minor children under the supervision of a custodian, usually a parent. Since the account is clearly earmarked for the child’s use and benefit it usually remains intact post divorce. Generally UGMA or UTMA accounts are intended to cover educational expenses but can be invaded for the benefit or support of a minor child. A minor usually obtains full control of the account upon his eighteenth birthday. (more…)
There are cases where minor children need to file a tax return. Most commonly a parent or grandparent has opened a trust account in their name in order to gift the child money. The funds will accrue interest or other gains if invested in the stock market. Passive income, such as interest, is subject to taxes.
The amount of tax a minor will have to pay depends on his parent’s tax basis. In situations where a divorce has occurred, the child’s basis will generally depend on which parent claims him as a dependent. In determing whether to file a joint or separate return consider the effect your decision will have on the amount your child will ultimately have to pay in taxes.
Additionally, the separation agreement or divorce decree should clearly spell out who is responsible for covering the children’s taxes. In all fairness, if a joint return is filed during the separation and prior to the actual divorce both parents should be equally responsible to cover the children’s taxes.
Child custody can be an emotionally charged issue. The factors involved in determining custody are not based on clear cut mathematical equations as in child support. Therefor decisions about a child’s future post divorce are often emotionally based. The courts do provide certain guidelines to help resolve custody issues. A judge will primarily consider the best interests of the child in determining custody. Additionally, the circumstances of the case and parties involved will be examined.
Three primary factors are involved in determining custody, residency, legal guardianship and visitation. Legal custody (guardianship) allows one or both parents to make decisions regarding their children’s education, health care, religion and general welfare. Sole custody provides one parent the power to act on behalf of the children on an individual basis . Joint custody gives both parents equal decision making power. In many cases joint custody is a better option as it allows both parents to work together for their children’s benefit. However, even if joint custody is determined to be the best option, the child will, most likely, reside with only one parent. Physical custody defines the child’s residency. Sole physical custody involves situations in which the child lives with only one parent but has visitation with the other. A visitation schedule is agreed upon and is clearly set forth in the court order or separation agreement. In certain instances, joint physical custody, where the child resides with each parent for different parts of the year is considered. Residence in these cases does not necessarily have to be split on a fifty-fifty basis however a substantial amount of time must be spent in each parents home. Generally, joint physical custody is not considered to be in the best interests of the child. (more…)
