The admission acceptances and financial aid offers are in! This week, high school seniors across the country will wrap up an exciting but stressful months-long college application process by finalizing their choices—May 1st is “Decision Day.”
For any family of a young adult who is getting ready to go off to college, choosing the right school involves a careful balance of many factors: the student’s dream schools, where they were accepted, public vs. private university, what they want to study, how far from home they want to go, what kind of learning environment they’ll thrive in, what school is offering the best financial package—and, in the big picture, what it’s all going to cost, who will pay for it, and how?
With college costs skyrocketing—tuition alone has tripled in just over 50 years—this calculation has become increasingly challenging.
A 2023 survey by Discover® Student Loans found that 70% of parents of college-bound kids are worried about how they’ll pay for it—that’s up from 66% in 2022 and 63% in 2021. 68% say they’re worried about the amount of student debt their kid will have to take on relative to future earnings. And while three-quarters feel higher education is important to future employment, nearly half are questioning whether a college education is a good investment today. A significant percentage also said that financial considerations will necessarily impact their child’s choice of college (for example, limiting it to in-state tuition).
Children from divorced families and their co-parents face even more layers of complexity in the college decision process.
To start, finances may be tighter. Not only is divorce itself expensive, but maintaining separate households costs more. And issues surrounding custody and child support may be very contentious. You may be wondering how your split will impact your child’s college options and finances.
Who pays for college when parents are divorced?
Currently, about half the states in the U.S give family courts the authority to order divorced parents, including a non-custodial parent, to cover some percentage of college costs. A pertinent bill, which passed the Iowa House last week and is now headed to Governor Kim Reynolds’s desk, is drawing attention to this issue. Senate File 513 would prohibit Iowa family courts from ordering either parent (through temporary orders or a final judgment in a divorce proceeding) to pay their child’s postsecondary education costs.
To understand how California deals with the college question, let’s first review the basics of child support orders:
Under California law, parents are legally responsible for supporting their child. In a divorce, your child support order lays out how the co-parents share this financial responsibility. Child support obligations are calculated using a formula that considers factors such as:
- The number of children
- Each parent’s income
- The percentage of time the child spends with each parent
The goal of child support is to meet the child’s basic needs and maintain stability in their lifestyle following divorce. It covers food, shelter, clothing, and school expenses. Parents also share the expense of necessary childcare and any medical expenses non reimbursed through insurance.
Except in exceptional circumstances, court-ordered child support continues until the child turns 18 or graduates from high school, whichever comes later. There is no mandate for parents to pay for post-secondary education. In other words, California does not require parents to pay college expenses or dictate how they should be shared, and the court cannot force divorced parents to contribute to their child’s college costs.
However, you can make a voluntary agreement regarding a college payment structure. Co-parents can and should work together to plan for what happens after your child graduates from high school.
No matter how old your child is when you divorce, considerations regarding higher education and related expenses should be part of your financial planning and decision-making. Making provisions now can help you avoid uncertainty, financial panic, and conflict with your ex later on—and enable you to support your young adult in making wise decisions about their future.
An experienced, forward-thinking, strategic family attorney will ensure that college questions are addressed as you negotiate your Marital Settlement Agreement (MSA). Once signed by the judge, this agreement is legally binding, and your arrangements involving college go into effect when your child enters college.
Planning Ahead for College – 4 Tips for Co-Parents
1. Focus on your kid’s future. Although it can be difficult, in the heat of divorce, to agree on anything or think about something that may be years down the road, remember you both care about your child’s well-being, success, and bright future. Let that guide you.
2. Have a frank, open conversation. There are many angles to examine—logistical, financial, and philosophical—as you contemplate your child’s future, and college specifically.
- Talk about your family’s values, your hopes, dreams, and goals for your child, as well as their own if they’re mature enough. It’s important to know your kid and think about their specific educational needs.
- Practically speaking, discuss what is reasonable for you, as divorced parents, to take on—is paying for some or all of college a financial commitment you can afford? (Remember to consider your retirement finances before taking on debt). How would you split costs? (Examples: 50/50, proportionate to income, as able). Is there a limit to what you will help with? For example, will you pay a certain percentage of any college your child chooses, or up to a certain amount (such as in-state tuition). When and how will payments be made? Will your child have to meet certain conditions, such as maintaining good grades or working a job to cover some expenses? Are they expected to get scholarships and student loans? Strong and detailed communication and thorough documentation are key.
3. Set up college savings plans early. Trusts, escrow accounts, 529s, earmarking a joint asset…there are many ways to save for college over the long term as divorced parents.
4. Get good advice. A financial adviser can help you plan strategically and understand tax implications as well as the various ways custody and child support affect financial aid calculations (which can differ between government aid and private institutions).
The experienced and caring family law attorneys at SFLG understand how important your child’s education is to you. We can help you navigate tough questions and make smart decisions in planning for college.
By Debra Schoenberg
