During the divorce process, parents have a long list of issues to discuss and resolve, including dividing their assets (eg, home, cars, bank accounts, retirement accounts, pension plans, etc.), dividing your debts (e.g., credit cards, car loans, personal loans, home equity loans, college loans, etc.), visitation and child custody, child support, and spousal support . In their Marriage Settlement Agreement (MSA), parents will often list who will pay for child care (usually divided equally), school fees, and extracurricular activity expenses. However, parents will not always include a directive regarding post-secondary education. They may not think about this issue when negotiating the terms of their divorce, especially when the children are still young and years away from pursuing post-high school education. This may lead to friction and arguments in the future, as the cost of technical schools and public and private university education continues to rise.

Many parents tend to think that a college education should and will be paid for by both parents. Unfortunately, very few states govern post-high school educational expenses and expect both parents to financially support their child’s college education. In California, the law requires that child support be paid until children turn eighteen (18) years of age. Support may continue as long as the child remains a full-time high school student, is not self-sufficient, or until the child turns nineteen (19) or completes grade twelve (12), whichever comes first. In all cases, child support payments stop once the children turn 19 years old. Additionally, California does not provide any statutory provisions regarding college costs. If college costs were not addressed in your MSA, the court will not order either parent to pay for college education or technical school tuition or expenses.

California courts will enforce provisions regarding college costs if they are part of a Marriage Settlement Agreement or Court Judgment, so we strongly encourage parents to include education cost sharing postsecondary education in your divorce contract at the time of the divorce. Since there are no legal guidelines in California, parents can choose to share expenses to fit their specific financial situation. For example, parents may agree to pay for public education, but not the full cost of private education, which can be much higher. Parents can also decide which additional expenses will be shared, including room, board, books, etc., and which the child is responsible for separately.

It is also important for parents to agree on who will claim the child as a dependent during the college years. That parent may be eligible for tax-deductible college expenses or credits, and the lower-income parent may claim more credits. Additionally, when a child completes the Free Application for Federal Student Aid (FAFSA), the custodial parent’s finances are used to determine financial aid eligibility. In this case, the parent with the lower income (which must include the income of any new spouse) will allow the child to be eligible for more financial help. Finally, if the parents jointly own a 529 college savings plan at the time of the divorce, they will need to decide which parent will have control of the account. Since a FAFSA form does not take into account the noncustodial parent’s income or assets, it may be beneficial to put the 529 plan in that parent’s name, to increase the chances of eligibility for financial aid.

How to pay for a child’s college education is a growing concern for many parents, especially divorced parents. That is why we recommend discussing this topic in depth during the divorce mediation process. An experienced mediator will present parents with several common options and help them decide on a solution tailored to their unique family and financial situation.