Deitch & Perone, P.C. | Attorneys At Law
Monmouth & Ocean County Area
732-440-9887
Union & Middlesex County Area
908-264-2067

Planning for college funds during a divorce

For many New Jersey parents, paying for their children's higher education can be a major source of stress. The College Board estimates that the already-high costs of university education rise by around 3 percent every year. The sum is already substantial, especially when multiplied over the course of four years; every year at a private university costs approximately $46,950 when tuition, fees and room and board are taken into account an a year at a public university costs an average of $20,770. However, many parents are committed to making a substantial commitment to their children's university education.

Planning to deal with educational costs can be particularly complicated when parents decide to divorce. The costs of divorce, including setting up two households, dealing with asset division and prioritizing child support and spousal support, can place a significant strain on parental finances, including plans for a child's education. While married couples may think about saving for their children's education, few have a financial plan as to what to do in the case of divorce or widowhood.

Many parents use specialized savings plans like 529 accounts to save for their children's college funds. A 529 plan allows parents to save and withdraw tax-free so long as the funds are used for a verified educational purpose. It can be particularly important to plan out how to handle existing 529 accounts during a divorce; in some cases, the account may be split into two under the custody of each parent, while in other cases, the parents may share control of the account for the benefit of their child's education.

Higher education expenses are just one of the financial matters that can be handled during divorce negotiations and the settlement process. A family law attorney might be able to help a divorcing parent to achieve a fair settlement on a number of issues, including property division, child custody and spousal support.

No Comments

Leave a comment
Comment Information

Learn How We Can Help

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Our Office Locations

Deitch & Perone, P.c.
265 Highway 36
Suite 203
West Long Branch, NJ 07764

Phone: 732-440-9887
West Long Branch Law Office Map

Scotch Plains Office
1812 Front Street
Scotch Plains, NJ 07076

Phone: 908-264-2067
Map & Directions