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Why you must consider college expenses in divorce

On Behalf of | Jul 27, 2021 | High Asset Divorce

Divorce can be a painful and expensive proposition, especially when kids are involved. However, it becomes vital that both parties in a divorce undergo appropriate and accurate financial planning in order to protect the future of the children. This means that college expenses must be part of the overall consideration. This goes for every state in the country, including California, so that children of divorced parents can have ample college opportunities.

The overall importance for you and your kids

The best way to achieve long-term satisfaction and financial protection after a divorce is to consider future expenses during the initial settlement, including preparing for college. This means that you and your soon-to-be ex-spouse should be on the same page. It is better to make arrangements now. These arrangements can include contributions to 529 plans and who will handle college living expenses.

What are some items that need to be addressed?

A failure to deal with these plans now sets up the potential for conflict later down the line. Both your attorney and your soon-to-be ex’s lawyer may guide the conversation. The following should be considered in college planning and financial agreements:

• Who will handle what contributions?
• What happens if the amount saved is inadequate to cover all expenses?
• Who will repay college loans?
• What will parents do in the event that the student does not go to college or takes a gap year?

As you can see, all of the above and many other potential factors present an array of complications for parents negotiating a settlement. How these complications will be handled depends on how well you plan for a student’s financial future.