When getting divorced in New Jersey, spouses may have many future topics that they need to consider when coming to resolutions about their divorce settlements. The tax implications of receiving certain assets or the effect on retirement are two such examples. For people with children, how to pay for future college tuition and expenses may also come into play during a divorce regardless of what the ages of the kids are at the time of the divorce.
U.S. News and World Report suggests that families with college savings plans in place may need to make decisions about which parent will retain ownership of a plan as divorced partners cannot co-own these plans. When determining this, two things should be considered. Control can be important as parents will need to identify who will have control of the money and how it is used. However, equally important may be the effect on financial aid options.
When it comes time to fill out the Free Application for Federal Student Aid, all assets in the custodial parent's name must be provided. Some families may benefit from having college savings accounts in the non-custodial parent's name to give students a greater chance at receiving more aid by not having to list these accounts on their FAFSA forms.
Parents may choose to identify their college payment plans in a divorce decree. This may help to reduce struggles about how to pay for college later on when it becomes a reality. Forbes recommends that thought be given to outlining specifics about why elements may be paid for and remembering that college costs include a lot more than just tuition.