Peaceful Divorce

With the new year approaching, some parents are thinking about sending their son or daughter off to college. If you are one of those parents, you may be wondering how to complete the Free Application For Federal Student Aid (FAFSA), a gateway to all federal student aid. Whether you are married or divorced, consider the following questions before completing the FAFSA:

  • What is the definition of Expected Family Contribution (EFC)?
  • What is the criteria used to calculate the EFC?
  • How does FAFSA define a parent's income?
  • What parental assets are excluded when calculating income?

Let’s take the example of a high school senior who will attend college in the Fall of 2015. If their parent’s divorce is not finalized until January of 2015, FAFSA will base the child’s financial aid package on the parent’s joint tax return. Using that same example, but with the divorce having been finalized in 2014, the child's financial aid package would be based solely on the income of the custodial parent.

One of the criteria used for determining the custodial parent is which home did the child sleep most nights in, verified by the address on the student's driver's license. This is where planning is key - Do you want the custodian of the college-bound child to be the higher or lower-wage earner?

With most student aid money being granted within the first quarter of the year, filling out and submitting the FAFSA forms by March or earlier is important. Regardless of parental income, it has become standard practice for educational institutions to ask for a FAFSA, as this information is also required to receive scholarships.

Schools look for well rounded students when considering applications. Encouraging your child to become involved in their community while in high-school will go a long way in supporting their future educational goals.

Have you begun the FAFSA process yet for your child?


The Inside Scoop on the New Mortgage Rules from an Expert
Robert D. Bordett CFP, CDFA
Collaborative Practice
and Mediation Services
888 U2AGREE (888.822.4733)

Views: 25


You need to be a member of Peaceful Divorce to add comments!

Join Peaceful Divorce

Become an affiliate of the Happily Divorced! book and audio program! Let Reformed "Killer" Divorce Attorney, Cynthia Tiano, and Dr. Max Vogt, Marriage and Family Psychologist, take you on an adventure into the lives of two families going through the divorce legal system - one doing "legal battle" and the other creating a "peaceful divorce". Learn how to create a Win-Win from their experiences...


Latest Activity

Robert D. Bordett, CFP, CDFA posted a blog post

21st Century Parenting Plans

I remember when the default custody arrangement had one parent as the custodial parent, and the other parent was known as the “Disneyland parent.” They had their children every other weekend, and maybe once during the week for dinner. Today it is more common to see joint parenting time consist of one week on, and one week off or “two-two-five-five” time,…See More
Aug 15
Robert D. Bordett, CFP, CDFA posted a blog post

Including a Financial Professional in Your Mediation

Very often, couples who are divorcing amicably, or who have straightforward financial situations, will forgo meeting with a financial professional while they go through mediation. Though this may seem logical on its face, “going it alone” may result in unnecessary hardship and inaccurate calculations.  It is easy to simply look at a tax table today and say “I am going…See More
Jul 30
Robert D. Bordett, CFP, CDFA posted a blog post

What About the House?

Going through divorce means dealing with hundreds of details, some more important than others. One detail that merits extra contemplation is how to deal with the marital home.Does one spouse want to keep it because the children still live there? You don't want to disrupt their lives any more than is already happening. What if the children are grown? Do you still need that much of a house?Here are the three most common means of dealing with the house in divorce:Selling the house and dividing the…See More
Apr 24




© 2019   Created by Cynthia Tiano, Esq..   Powered by

Badges  |  Report an Issue  |  Terms of Service