Deciding College Payments After Divorce
With so many questions going through your head during a divorce, many of them are bound to be financial. After all, if you have children, you know how expensive they can be. Even the price of daycare can be a massive expense… But it has nothing on the fees college can bring to the table. Even married families struggle to pay for college, so what if your family separates? After all, several states have clauses and requirements that enforce college payments. Many people even factor it into thinking about child support. But what’s the case in Florida? Will you have to pay your child’s college tuition after a divorce?
As it turns out, Florida has very few requirements to pay college tuition following a divorce. As stated in Wagner v. Wagner 885 So. 2d 488 (Fla. Dist. Ct. App. 2004)… “[T]he court cannot require a parent to pay those expenses unless the parties have contracted for them in a marital settlement agreement.” Other cases say similar things, such as referring to the duty to pay for an adult’s college expenses as being “… [M]oral rather than legal” in Grapin v. Grapin, 450 So.2d 853, 854 (Fla.1984).
Child support usually lasts until a child’s 18th birthday or leaves high school. As such, there is often no real obligation to pay college expenses.
Can You Split College Expenses in a Divorce?
You could, yes. If you want your ex to pay part of the college tuition, you must agree to this before finalizing the divorce. This finalization involves a document called a “Marital Settlement Agreement,” or MSA. While this might be a complicated term for many, they are simpler than you’d expect. A Marital Settlement Agreement is a final summary of all financial issues relating to the divorce. These agreements include payment of debts, alimony, the division of assets, and child support. It can include things that are both ordered by the court and voluntary things. For example, voluntary arrangements could involve longer payments of child support.
As this is the final legal document in a divorce, it is wise to include future financial situations. This extends beyond college, as well. If the marital assets include the joint ownership of a business, The agreement should lay out its specifics here. Businesses are one thing. You usually have a good idea of how much the business costs and brings in. College prices can fluctuate a lot depending on where your child wants to go. How can you go about preparing for the unknown?
Invest in a 529 Plan
529 plans are a type of tax-advantaged savings investment that helps fund education. When the plan’s designated beneficiary uses the plan to pay for textbooks, tuition, student loan payments, or other qualified goods, the investment offers tax benefits. You can stipulate that you and your ex pay at a regular rate and enforce the payment.
You Can Cap Expenses
Another option is to set an upper limit for what you or your former spouse will pay. It’s recommended to set a reasonable ceiling. The often recommended example is to use Florida in-state tuition as your guideline. This will ensure that your child can at least enroll in a Florida state university.
You Can Base Contributions on Income
This method has some potential drawbacks. If the goal is to mitigate an unknown, this introduces another unknown. You don’t know how much money you or your spouse will be making years down the road. If your spouse can’t pay, they aren’t required to pay as their income is too low to pay at all. Because of financial hardship, being unable to pay is not a willful refusal to pay. Because of this, being unable to pay does not hold an individual in contempt of court.
There are several options for splitting the payment of college tuition. To determine which works best for your situation and prepare the paperwork, you need an attorney. Don’t rely on electronic forms or do-it-yourself documents for this. Voluntary agreements are legally binding, and it can be easy to make a mistake. At Thompson Law, we will guide you through the process and protect you. We will keep you informed. We will help you do what’s best for your child. If you’re anxious about finances after the divorce, call us today for a consultation.