Divorcing parents have many things to consider, and sometimes immediate needs take precedence over future planning. One area that should not be overlooked during a divorce is planning for college tuition, student fees, and all related expenses. While the couple is hammering out the terms of the divorce settlement, they are well advised to include all topics reasonably related to college, college tuition, and expenses, even if their children are not going off to school for many years.  Of course, the situation is much more urgent if they are in high school.

Here are some things you should include in your agreement:

Who fills out the FAFSA?

The Free Application for Federal Student Aid is the most important document in the college tuition payment process. FAFSA says the parent who fills out the form should be “the custodial parent”. That is usually the parent the child lives with the majority of the time.  If time is shared equally, then it is the parent who provides more financial support during the year. If the payments are fairly equal, then it is the parent with the higher income or the parent who claimed the child as a dependent when filing US tax returns. Biological parents who were never married are treated as divorced parents. In the case of an actual tie, where there is no clear criteria to determine which parent is the custodial parent, the school’s financial aid administration will make the determination. Alimony or child support received from a non-custodial parent must be included in the FAFSA.

Does the custodial parent report on the FAFSA support from the non-custodial parent?

This information is not required by federal aid but colleges consider child support as income when determining student aid. Some private colleges do require a separate form filled out by the non-custodial parent.

In addition, the agreement should include:

• How much each parent contributes towards tuition, by percentages;
• How many semesters of support are the parents willing to contribute;
• Whether applications limited to certain schools;
• Which parent pays how much towards SAT Prep, tutoring, SAT’s, application fees;
• Who pays for room and board;
• Who pays for books, supplies, computer;
• Is there a top age limit for parental support;
• Does support change if a child lives at home;
• Who pays off student loans, and does that change if the child is earning or self- supporting after college;
• Does the student get a car and car insurance;
• If not, then what transportation expenses are reasonable and included;
• Does the student work during the summers and/or the school year;
• Do the parents agree to set aside funds in a 529 Plan for the student;
• Will the parents backstop their obligations with life insurance, and how much, naming the child as irrevocable beneficiary, and the other parent as Trustee for those funds?

Family law experts recommend that divorcing parents agree on as many of these points as possible at the time of their settlement agreement.  College issues are among the most contentious that family lawyers, mediators, arbitrators, and judges deal with.  It is best for the parties to give each other and any future service providers a head start on how to resolve these issues, rather than waiting for them to break out at zero hour.  Parties should not spend their children’s college funds educating their lawyers’ children or grandchildren.  Yet, sadly, some do.

A skilled attorney can make all the difference in your divorce proceedings. Call a family law attorney at the law offices of Hanan M. Isaacs, P.C ., at 609-683-7400 or contact us online to schedule a near-term initial consultation in our Central Jersey location in Kingston.  We will listen to your facts, explain the law, and help you create a pathway to social and economic justice for your children and you.  We are compassionate counsel and tough advocates.  Call us today.  You will be glad you did.