One of the most complicated factors of a divorce is dealing with equitably dividing assets and finances between two divorcing parties. Maryland parents may not always consider issues such as college funds and other future obligations during the turmoil of the divorce process. College costs may be an issue that should be settled during the divorce settlement instead of handling it later.
It is recommended that all possible financial decisions be made as soon as possible. Even if the children are young, parents should consider how they will handle paying for tuition later in life. Over the years, parents may remarry and have other financial commitments. Having the tuition issues settled in a divorce agreement may help avoid conflict later.
It is also recommended that parents begin saving in a college fund as soon as possible. By allocating funds specifically, Maryland parents cannot use that money for anything else. Additionally, parents should work together to determine how financial aid forms will be completed and which parents will be responsible for this task.
If parents are willing to work together, it may be possible to eliminate future contention when it is time to determine how parents will pay for college. Parents can work closely with legal teams to determine the details of these agreements. It is possible that they can negotiate terms of a college tuition agreement that will be beneficial to all parties involved. When facing a divorce, it is important to consider all financial issues, including those that will come in the future, such as paying for college tuition and other issues.
Source: Reuters, CORRECTED-YOUR MONEY-Three things divorced parents need to know about college, Geoff Williams, March 3, 2014