Who Will Pay for the Kids' College Education After the Divorce?

During the divorce process, parents have a long list of issues to discuss and settle upon, including the division of their assets (e.g. home, cars, bank accounts, retirement accounts, pension plans, etc.), the division of their debts (e.g. credit cards, car loans, personal loans, equity loans, college loans, etc.), child custody and visitation schedule, child support, and spousal support. In their Marital Settlement Agreement (MSA), parents will often include who will pay for child care (usually split equally), school expenses, and extracurricular activity expenses.

However, parents will not always include a directive regarding post-high school education. They may not think about this issue at the time of negotiating the terms of their divorce, especially when children are still young and years away from seeking post-high school education. This may lead to friction and arguments in the future, as the cost of technical schools as well as public and private college education continues to rise.

Expectations vs Reality

Many parents tend to think that college education should and will be paid by both parents. Unfortunately, very few states govern post-high school educational expenses and expect both parents to financially support their children’s college education. In California, the law requires child support to be paid until children turn Eighteen (18). Support can continue while the child remains a full time high school student, is not self-sufficient or until they reach the age of Nineteen (19) or finish the Twelfth (12th) grade, whichever comes first. In all cases, child support payments stop once children turn 19. Additionally, California does not offer any statutory provisions regarding college costs. If college costs were not addressed in a their MSA, the court will not order either parent to pay for any college education or technical school tuition or expenses.

California courts will enforce provisions regarding college education costs if part of a Marital Settlement Agreement or Court issued Judgment, therefore we strongly advise parents to include post-secondary education cost sharing in their divorce contract at the time of divorce. Since there are no California legal guidelines in place, parents can decide on sharing the expenses to fit their specific financial situation. For example, parents may agree to pay for public education, but not for the full cost of private education, which can run much higher. Parents can also decide which additional expenses will be shared, including housing, food, books, etc., and which ones the child is separately responsible for.

Who Will Claim the Child as a Dependent

It is also important for parents to agree on who will claim the child as a dependent during the college years. That parent may be eligible for tax-deductible college expenses or credits, and the parent with the lower-income may be able to claim more credits. In addition, when a child completes the Free Application for Federal Student Aid form (FAFSA), the custodial parent’s finances are the ones used to determine eligibility for financial aid. In this case, the parent with the lower income (which has to include any new spouse’s income) will allow the child to be eligible for more financial aid. Finally, if parents jointly own a 529 college savings plan at the time of divorce, they will need to decide which parent will have control of the account. Since a FAFSA form does not take into account the non-custodial parent’s income or assets, it may be beneficial to put the 529 plan under that parent’s name, in order to increase the chances of financial aid eligibility.

How to pay for a child’s college education is a growing concern for many parents, especially divorced parents. This is why we recommend discussing this issue at length during the divorce mediation process. An experienced mediator will present parents with several common options, and help them decide a tailor-made solution to their particular familial and financial situation.

About A Fair Way Mediation

A Fair Way Mediation Center offers a relaxed, compassionate atmosphere in an informal setting that encourages a calm and objective approach. This is a safe space that avoids the stress and embarrassment that courtroom procedures can inject into any divorce or separation. All couples are welcome, including traditional or same sex families.

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