Who Pays for College After a Divorce?
Bringing up a child involves various expenses, both expected and unforeseen. The expenses related to raising a child can be a financial drain on families of all types and income levels. However, many single parents experience a disproportionate burden if the other parent is not in the picture or doesn’t contribute monetarily. In resolving child custody issues, courts often take numerous factors into accounts, such as educational costs like tuition fees for private schools or colleges.
In 2013, the Alabama Supreme Court heard a case involving whether non-custodial parents should be asked to pay for their child’s college tuition. The long-standing decision on this matter dated back to 1989. It required non-custodial parents to contribute to tuition expenses and educational costs for children aged 19 years and above who are unable to support themselves.
However, in 2013, the old ruling was reversed, eliminating the legal requirement to pay some of those educational costs and holding that any contributions towards the higher education of a child must be voluntary and cannot be enforceable by the court.
Summarily, now parents in Alabama who get divorced are typically not required to pay for their children’s college expenses.
How to Pay for Your Child’s College Tuition in AL?
It can be expensive to live in separate households, and parents may need to prioritize daily living costs and child and spousal support over college fees. But there are still measures parents can take to plan for their child’s college education.
These measures may include changing college plans. A costly private college may no longer be an option after divorce. But parents and their kids should research what type of loans, scholarships, and grants are available.
For many families, the best option may be to invest in a 529 plan. The benefit of this kind of plan is that the distributions are tax-free as long as they are used for educational expenses. At the time of the divorce, some parents may already have a 529 plan.
If they do invest in such a plan, they may want to address it in the divorce agreement. Typically, one parent owns a 529 plan. It is possible for the owner to change owners or beneficiaries. Thus, parents may want to ensure that the divorce agreement details that the funds are meant for a child’s education. Making both parents co-owners of the account is another viable option.
Create a Written Agreement
As the children are not “minors” anymore when attending college, a parent is only obligated to support a child on a voluntary basis. However, a contract between former spouses to do so may be enforceable by law.
That being said, don’t rely on verbal agreements on college payments. College tuition will likely be one of the most expensive investments in the lives of your children. Your best chance to negotiate a fair apportionment of future expenses is at the time of the divorce settlement.
Many parents hesitate to do the above and have a “wait and watch” mentally based on various factors, including a child’s future probability of success at college or confidence in a parent’s financial ability to contribute to a cost many years in the future.
It is not possible to predict what lies ahead, such as economic depression, employment loss, or a medical crisis, all of which could greatly affect a parent’s ability to contribute to this substantial future expense. Before entering into an agreement that cannot be modified or made contingent, consider the above possibilities.
Establish Who Pays for What
There are many ways to establish who should pay for which specific college costs. The most straightforward arrangement is to agree to divide the expenses 50-50, which assumes you have the same monetary ability to contribute as your ex-spouse. Another option is that one parent pays for tuition while the other pays for the likely less costly room and board.
When splitting expenses, you should consider items such as fees, books, medical costs, lab, and extra-curricular expenses, travel costs, and possibly a stipend for the student for phone and internet connection, necessities, or spending money. After you have calculated how much money is required for college and who will pay, establish how this will be paid, and create a written agreement.
Require Life Insurance in Your Agreement
One cannot predict the future, and there is a possibility that a parent passes away, becomes disabled, or loses their job at some point after the divorce and before the child attends college. At this point, life insurance and disability insurance come into play. In the event that anything happens to either parent, insurance coverage could help make sure that the college education of the child will be protected monetarily.
Remember, it is vital to evaluate all options and speak to a seasoned divorce lawyer to help you negotiate the best arrangement to make sure that the educational future of your child is protected.
Consult a Trusted Family Law Attorney on Your Questions about Child Support and College Costs
Similar to most family law matters, a child’s parents, rather than the judicial system, are best able to determine their child’s educational requirements and interests, considering the child’s preference and personality. But if an agreement cannot be reached on child support and college costs, it may be necessary to consult a skilled legal professional at the Smith Law Firm. To speak to an experienced family law attorney, call today at (334) 702-1744.
