There’s no question that most career counselors today impress a need for higher education in our young people. We hear how a degree can put you ahead in the job market, can help you advance in your current position, and may even secure you a better salary than if you only have your high school diploma. But the question remains: who should pay for your child’s educational expenses after a divorce? Depending on where you live, you might be surprised.
Child Support and College Expenses
In most states, child support by the noncustodial parent continues until the child is 18 and graduates high school. Some states, like Michigan, go beyond the age of 18 to 19 1/2 if the child is still living at home and attending high school full-time.
Some jurisdictions require parents to pay for their children’s college expenses, and that includes the noncustodial parent. We’ve all watched the price of college increase astronomically over the past few years, so if you’re not financially ready for these expenses, you might feel overwhelmed—especially if you’re still paying child support.
Some states, like Illinois, allow the judge to allocate financial responsibility to parents for educational expenses after the child graduates from high school. Unlike child support—which the court usually decides by using a specific formula—in most cases, there’s no formula, meaning the judge determines how much you’ll need to pay. For example, if your child decides to attend a local college and live at home with the custodial parent, the court may order you to pay the reasonable cost of the child’s food, transportation, and utilities.
Most judges understand that not every parent can afford to pay for educational expenses while still supporting themselves, and the courts will place a cap on the maximum obligation for each parent.
What Factors Will a Judge Consider?
If you live in a state where the court determines your responsibility to pay, the judge may consider any of the following factors to calculate your obligations:
- each parents’ financial resources (including 401(k), pension plans, savings, income, and investments)
- the child’s financial resources (including scholarships, loans, and grants)
- whether the parents would have paid for the child’s college expenses had they not divorced
- each parent’s level of education
- the child’s interests and academic goals, and
- the parent’s expectations for the child to attend college or university had they not divorced.
Child Support Agreement and Judgment of Divorce
Regardless of where you live and the laws surrounding college expenses, if you want to maintain control of your finances, you and your spouse can work together to create an agreement that addresses how you’ll handle college expenses, which a court will usually honor.
Your agreement should be in writing. It should dictate which parent is responsible for the payments and whether the noncustodial parent will pay to the school directly, pay the child, or pay the custodial parent.
College expenses aren’t limited to tuition, so be sure to include a section that specifies what qualifies as a college expense. Common expenses include:
- tuition, including whether the noncustodial parent must pay for in-state or out-of-state costs
- room, board, and meals
- textbooks
- electronics, like a computer, printer, or cell phone
- clothing allowances
- transportation, including whether the child will use public transportation, or if you’ll pay for a vehicle, insurance, and other related costs, and
- emergency funds.
Your agreement should also include an expiration date for parents to pay for expenses. For example, if you’re both going to split the cost of an undergraduate degree, you should specify that your contributions will end after the child attends school for four years, whether or not the child graduates. You can also include any conditions that your child must meet for financial assistance to continue. For instance, that the child should maintain a full-time course load, maintain a specific grade point average, and work during the summer to cut expenses.
Lastly, be sure to specify that your child must apply for financial aid using the Free Application for Federal Student Aid (FAFSA) process, and if the government provides some financial aid, how that will change your obligations. You can also work with your child to apply for loans and grants that may significantly reduce your expenses.
It’s worth noting that if you agree to pay for your child’s college expenses, the court will enforce it, even if you no longer want to (or can’t) pay. Both parents should consult an attorney before signing any legal document.