What You Need to Know About Paying Child Support for College Expenses in California
In California, child support terminates once a child turns 18 (or in some cases, 19), as parents have no legal obligation to provide support for adult children. Here’s everything you need to know about paying child support for college expenses in California.
Child support is not meant to cover college or higher education-related expenses such as tuition. Therefore, parents are not legally obligated to pay child support for college expenses in California. That being said, parents oftentimes voluntarily construct financial agreements or plans to cover the high costs of education.
How can divorced parents pay for their child’s college education in California?
Parents are not legally required to financially support their child and their education once that child turns 18. However, most parents want to ensure their children are able to obtain higher education. In the case of a divorce, there are two primary ways that parents can cover the costs of their child’s higher education.
1. Negotiating an agreement
Oftentimes, parents will negotiate an agreement within their divorce settlement regarding college payments. This sort of agreement is similar to other divorce agreements as it also involves a thorough and clear plan detailing how payments and other related aspects will play out.
Aspects that both parents need to agree upon can involve big-picture matters that vary in price, such as what kind of institution the child will attend (public, private, out-of-state, etc). Additionally, parents need to agree upon the specific expenses within the school the child will attend. These can include meal plans, type of room and board, etc. Further, a method of paying for these college expenses needs to be agreed upon, as well as what parents expect from the child. For example, in case the child does not maintain a certain GPA, both parents need to agree upon consequences that will follow. Overall, conditions, details, and limitations pertaining to the child’s college experience and related expenses must be negotiated and covered in the agreement. To ensure all matters proceed smoothly, parents should also discuss the potential for future changes in the agreement.
Related: How to Modify a Child Support Order in California
2. Creating a trust account
Creating a trust account is similar to negotiating an agreement. However, it differs in that it provides more security by holding both parents legally accountable for payments. The method of establishing a trust or escrow account sets funds aside and supplies protection in case a spouse breaks the agreement set forth. In California, establishing this sort of trust involves both parents agreeing to financially support their child’s higher education costs, and thus, putting payments into a financial account that holds and secures the funds. Similar to negotiating an agreement, creating a trust account necessitates a lot of specificity in details pertaining to the arrangement. If an agreement is broken by one or both parents, a trust account affords a degree of security for the child’s higher education expense fund.
Related: Cost of Child Support in California
How does FAFSA change for a child post-divorce in California?
In California, the parent that claims the child as a dependent during college years can be eligible for tax-deductive college credits or expenses. Thus, it can be beneficial for the lower-earning parent to be the custodial parent as they may be more likely to receive financial aid for the child. The Free Application for Federal Student Aid form (FAFSA) determines eligibility for financial aid based on the custodial parent’s financial situation, and requires income information from a new spouse if there is one. Additionally, if both parents take part in their child’s 529 college savings plan, both parents must agree upon who will take control of the account proceeding their divorce. A FAFSA form does not evaluate income or assets possessed by the non-custodial parent, thus, chances of financial aid eligibility can be increased if the non-custodial or higher-earning parent takes control of the 529 account.
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If you or a loved one have any more questions about paying child support for college expenses in California, contact us. We’ll get you in touch with the most qualified lawyer for your unique legal matter. Get your free consultation with one of our California Child Support Attorneys today!