Despite the plans parents had for their children`s college years, divorce can undermine those plans. All of a sudden, each parent has separate housing costs, divorce lawyer fees and other unintended financial consequences of the dissolution of the marriage. Worse still, the divorce process leads both parents to take stock to realize that the parents may not have made enough arrangements for their own retirement years on the horizon, especially now that there will be two retirement homes. Intact families have the luxury of not knowing the risks to old age insurance, which arise from paying high school fees, but outgoing parents do not have that luxury. Jeffrey A. Landers, CDFA™ is a financial strategist in divorce™ and founder of Bedrock Divorce Advisors, LLC (www.BedrockDivorce.com), a divorce company that works exclusively with women who are going through or could go through a financially complicated divorce. Unless ordered by the courts, there is generally no legal obligation to pay tuition fees. Q: When my child goes to university, how long can I pay for university? Most grandparents have not closed legal instruments requiring them to pay for their education, although they can generally be expected to do so. Few grandparents, regardless of previous expectations, will continue to pay if there is a general alienation between the children and the part of the family resulting from the divorce.
In addition, many of the university`s cost rules for wealthy families are defined by a family trustee, in which the terms of these trusts almost always indicate that such a payment is entirely discretionary on the part of the agent. Although, in practice, a group of grandparents may pay the parent`s obligation for the university, the university fee agreement, which is part of the parties` divorce scheme, would generally only concern the parent, while perhaps recognizing that the parents` obligation can be met by their grandparents. Below are answers to the most frequently asked questions about higher education and child care expenses. A university support agreement usually contains details such as the percentage of college fees for which each parent is responsible, the limits of payments, the restrictions for the university that the child must attend, exactly what expenses are covered, etc. Please note that determining the future costs of college can be very difficult, especially if your children are still young, and unfortunately, most divorce lawyers do not have the education or know-how to calculate complex projections of future university costs and what would be the current value of these future costs in today`s dollars.