Paying for college after divorce becomes a challenge for both parents – that’s no surprise. What you might find interesting is that in a study published by the Journal of Family Issues, they found that divorced parents contribute about one-third of what married parents contribute.

Students with divorced parents face a greater burden in financing everything; from their first car to a college education to flowers for their prom date because their finances aren’t the same as they were before the divorce the reality is that there is often less to go around now that many expenses, like heating bills, are double the amount they were during marriage.

Sometimes ignorance is bliss.

In many cases, the child may be completely unaware of the fact that their parents might be paying less for college than they would have before the divorce. If that’s the case, it’s important that the parents assure the child that they are doing their best to help in every way they can…and leave it at that.

No child will benefit from knowing that Dad can’t pay for all of tuition this year because he has to pay Mom spousal support.

Should you even be paying for college???

My advice to all parents is to pay yourself first. Do not even consider paying your kid’s tuition until you have maxed out all available tax deferred retirement vehicles.

Why?

Your kids can get loans at fairly favorable terms and may even get scholarships and grants they will never have to pay back. No one will give you loans to pay for your retirement and you certainly aren’t going to be getting any scholarships to your local country club. For those who absolutely must limit the amount of work your child takes on (outside of being a student), I advise you to encourage them to work during the summer months, so they can contribute to their education and future.

This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.

Lou Falvo is a Certified Divorce Financial Analyst® and CIMA® (Certified Investment Management Analyst) who assists clients by evaluating the tax and financial aspects of divorce. Lou is dedicated to reducing the burden of each client by thoroughly examining the financial elements of the client’s divorce, with a keen focus on what is in his or her best interests. Contact Lou to find out how he can assist you with your divorce proceedings at  lfalvo@crossroadsdivorce.com or (585) 542-2382.