College Expenses in Divorce Cases
Every divorce agreement is a little different. The longer marriages usually involve a longer divorce agreement.
Frequently when parents are involved in a divorce with adult, or near adult, children they wish to include provisions for those children in their divorce agreements. I strongly advise my clients to leave adult or near adult children out of their divorce agreements but some, nevertheless, desire to include provisions for them in the divorce.
I remind you again of my general advice against such agreements. Where parties do insist upon such provisions I will point out some potential pitfalls and advise minutes. Also, the context of this article is limited to agreements because the Maryland divorce and custody courts cannot order college savings or special expenses for emancipated children.
Provisions for such children in divorce agreements range a great deal from case to case. In some cases it may be as simple as a provision similar to a will. For example, a directive that the eldest daughter get grandmother’s china and/or a particular son gets a pocket watch or shotgun etc... In most cases, where the parents include these types of provisions it generally deals with either an automobile or money for college.
With respect to automobiles, if parents must buy the children an automobile in the terms of their divorce I strongly advise it be purchased outright. As a general rule, maintaining any recurring obligations between divorced parties is a recipe for friction and potential disaster. One must also bear in mind which parent will cover the vehicle under his/her insurance. A separate policy for teenagers is nearly never something people can afford.
With respect to college savings or college funds parents must keep a few things in mind. First, including such provisions in their divorce can have a ripple effect upon their children’s eligibility for college financial aid and any potential tax implications.
College financial aid offices are being worked over pretty hard in this economy. They want the income of parents AND stepparents as well as a declaration of assets for college. Parents who insist on including college obligations in their divorce agreements generally want the funds in the student’s name. If there is such an account, or a proviso regarding college, the school may not give as much financial aid.
Second, be careful that your child(ren) are not “3rd party beneficiaries” by being in the divorce agreement. In a similar way you want have language that constrains the student to remain on task. For example, a provision that the grades have to be a C+ or better and that the degree be obtained four years etc….
Lastly, you are going to want to set a ceiling for these expenses. It’s customary to have language that says “the parents’ contribution will be defined as the expense for in state tuition at the University of Maryland…” In my opinion the parents are either going to work together on something like this or they are not. Yet, every case and circumstance is different.
Tim Conlon, Esquire for The Custody Place
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| From Child Custody Attorneys for Frederick County Maryland |
