How Divorcing Parents Can Share College Expenses
- posted: Sep. 02, 2024
- Child Support
In Arizona, child support generally ends when a child reaches the age of 18 or until high school graduation. That means that the costs of a college education are not included in each parent’s support obligation. Nevertheless, there are ways that divorcing parents can sharing these sizable expenses.
To create enforceable obligations for sharing tuition and other college costs, parents can include specific terms in their divorce agreement or final divorce decree. These might outline how much each parent will contribute, which expenses will be covered (tuition, books, room and board, etc.), and the duration of support (e.g., until the child graduates or reaches a certain age).
Several provisions should be considered in drafting and negotiating the agreement, such as these:
Income-based contributions — Parents can agree to split college costs proportionally based on their respective incomes. This means the parent with a higher income might pay a larger share of the expenses. The agreement might include clauses allowing for adjustments if one parent's income significantly changes over time.
Mutual agreement on college selection — Parents can agree that both must approve the child's college selection, especially if one parent's contribution is contingent on the affordability of the institution. Some agreements specify that the child should attend an in-state public university unless both parents agree to pay for a private or out-of-state college.
Creating a 529 college savings plan — Parents can agree to jointly contribute to a 529 college savings plan, which is a tax-advantaged account specifically designed for education expenses. One parent typically owns the account, but both can agree on the contribution schedule and usage terms. The agreement can specify how and when withdrawals can be made.
Setting up a trust — Parents can establish a trust dedicated to paying for their children's college education. This trust can be funded by one or both parents and managed according to the terms specified in the trust agreement. A trustee, who could be a neutral third party, can oversee the distribution of funds for educational expenses.
Mediation clause — Since future circumstances and college choices can be unpredictable, parents might include in their agreement a clause that requires them to seek mediation if disputes arise about college costs, so that any disagreements are resolved amicably.
As the child grows and college approaches, parents should review the agreement periodically to ensure it still meets their financial situation and the child’s educational needs. The agreement can be amended by consent to accommodate increases in tuition, financial aid received or changes in parental income.
By carefully planning and including provisions for college education in their divorce agreement, parents can help ensure that their children's educational needs are met without unnecessary conflict. Working with a knowledgeable child support attorney can help parents create a fair and comprehensive plan tailored to their unique circumstances.
At Clark & Schloss Family Law, P.C. in Scottsdale, Arizona, our attorneys are experienced in managing all aspects of child support during divorce. You can schedule a consultation by calling 602-789-3497 or contacting us online.