In New Jersey, the law requires that parents financially support their children. As a result, when married parents divorce, or when unmarried couples have children, they may be legally required to pay child support. Typically, child support comes to an end when a child turns 18. However, New Jersey law does not actually stipulate a fixed age at which child support is terminated, so in many cases child support may continue through college or even longer.

Parents should consider the length of child support, taking potential college costs into account, when they work out child support and custody arrangements with the assistance of their attorneys. Divorced parents should also familiarize themselves with the federal financial aid rules that apply to divorced families.

In order to obtain grants or loans for college, parents must file the Free Application for Federal Student Aid. In the case of divorced parents, only one parent should fill out this document, and this should be the parent with whom the child has spent the majority of the previous 12 months. Information about the other parent’s income does not need to be included on the FAFSA, even if that parent pays child support. It also does not matter which parent has claimed the child on a tax return; all that matters for FAFSA purposes is where the child resided most often.

If the child resided with each parent for an equal amount of time, then the parent who spent more money on the child’s care in the previous 12 months is the one who should fill out the FAFSA.

Of course, a child may qualify for more loans or grant money if the FAFSA is completed by the lower-earner, so it may be wise to plan living arrangements accordingly if this is reasonable. Additionally, it is wise to consider the effects of remarriage. If the custodial parent has remarried, the new spouse’s financials have to be reported on the FAFSA.

It should also be noted that a small number of colleges use the PROFILE form for financial aid, rather than the FAFSA. This form tends to account for the incomes of both parents, regardless of marital status.

These and other financial implications of divorce are important for many New Jersey parents to consider.

Source: CBS News, “How does divorce affect college financial aid,” Lynn O’Shaughnessy, Sept. 27, 2013