How Divorcing Parents Can Plan for Their Children’s College Education

When parents get divorced, maintaining their children’s future welfare is a priority, and financing a college education can be a major part of that goal. In Kansas, child support obligations typically end when a child turns 18 or graduates from high school, whichever occurs later. This leaves the costs of higher education, such as tuition, room and board, books and transportation, outside the scope of standard child support arrangements.

However, divorcing parents can proactively address their children’s college expenses by including specific provisions in their divorce agreement or final divorce decree. Doing so creates enforceable rights and obligations for both parties. Here are some ways parents can pursue this course of action:

• Income-based contributions — One common approach is to allocate college expenses based on each parent’s income and financial capacity. For instance, parents may agree to share costs 50/50, 60/40 or as another percentage, depending on their respective earnings at the time of the agreement. This method promotes fairness and reflects the economic realities of each parent.

• Mutual agreement on college selection — College expenses can vary significantly depending on whether a child attends a public university, a private college or an out-of-state institution. To manage costs effectively, parents often include a provision requiring mutual agreement on the selection of the college. This ensures that neither parent is unfairly burdened by excessive expenses.

• Creating a 529 college savings plan —Parents can agree during their divorce negotiations to establish and contribution to a 529 college savings plan, which is a tax-advantaged account specifically designed for education expenses. Contributions may be structured as monthly payments or lump sums, with both parents sharing the responsibility.

• Setting up a trust — For parents who wish to ensure funds are set aside exclusively for college, establishing a trust can be a viable option. The trust can include specific instructions about how and when funds are to be distributed, so that the money is used solely for educational purposes. A trustee, such as a trusted relative or financial institution, can oversee the trust’s management.

An agreement crafted by an experienced family law attorney will outline each parent’s responsibilities, including what expenses are covered (e.g., tuition, fees, room, board, books and transportation) and how payments will be made. With college costs ever rising and financial circumstances being unpredictable, parents may wish to include a clause allowing the agreement to be amended. This could specify, for example, that adjustments will be made if tuition increases significantly or if the child secures scholarships or grants.

A carefully negotiated and drafted agreement offers a roadmap for handling college costs and makes certain that both parents contribute to their child’s success. It also provides children with the security of knowing they will be able to pursue higher education

Peggs Wheeler, LC in Wichita assists divorcing parents in Kansas with all aspects of child custody and support, giving personal attention to your most pressing concerns. Call 316-512-7853 or contact us online to schedule a free consultation.