Peaceful Divorce

People going through divorce are getting smarter. They’re looking for ways to work together for the good of the family - in their parenting arrangements, financial settlements and in the education of their children. Sending a child to college is one of the most significant financial burdens divorced parents can face today, but there are choices that you can make together which will maximize the financial aid available to your children.


The Free Application for Federal Student Aid (FAFSA) is the gateway to all federal student aid.
This past September, I attended a workshop on the subject at the annual conference of the Association of Divorce Financial Planners. It was presented by Amy Whitlatch and Kevin Worthley, both of whom are Certified Financial Planners and Certified Divorce Financial Analysts, like myself.

As I listened, I couldn’t help but wish I had these two around as I was going through my own divorce and planning for my children’s education. So I’ll do you that favor and point out some things you might want to ask yourself:

  • What is the definition of Expected Family Contribution or EFC?
  • What methods are used when calculating the EFC?
  • What is the criteria?
  • How does the FAFSA define a parent’s income?
  • What assets are excluded from the parents?


If you would like more detailed steps to look at, please contact me and I’ll be more than happy to email a list of the steps.

Timing is important.

Let’s take a hypothetical case of a high school senior who is set to attend college in Fall of 2013. If his or her parents’ divorce is not finalized until January 2013, then it is the joint tax return of 2012 which will be the basis of the child’s financial aid package. Using the same example but with the divorce having been finalized in 2012 instead of 2013, the child’s financial aid package would be based solely on the income of the custodial parent.

The criteria for determining the custodial parent is literally defined as the home the child “slept most nights in.” They will verify this by asking for a copy of the student’s driver’s license to prove his or her address. This is the part of the process where some planning can play a part. In other words:  Do you want the custodian of the college-bound child to be the higher or lower wage earner?

With all the information available on the internet these days, parents have more time to plan for college than they ever did before. Even so, families are wondering “How are our sons and daughters going to get work when they graduate? How are we going to get college loans paid off?  How can we reduce the cost of college?”

I think it’s definitely needed. Kids cannot continue to pay these higher prices, and neither can their parents.

Start planning today to make sure you don’t end up with less retirement savings just because you want your son or daughter to get a good education.

Bob Bordett

Views: 7

Comment

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... HappilyDivorced.org


Events

Latest Activity

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

What Is a Caucus?

One of the guiding values in mediation and collaborative law is transparency. It comes with the territory when one is trying to establish trust with two different parties. Sometimes an issue may arise that one party may wish not to discuss in front of the other. If they both agree, separate meetings may take place. These meetings are called caucuses.Caucuses can be…See More
Oct 22
Robert D. Bordett, CFP, CDFA posted a blog post

How Important Is the Budget in Divorce Planning?

I think everyone’s least favorite word is BUDGET. Why don’t we want to hear that word? Think about it: We’re asking ourselves to do something we don’t want to do — or worse yet, someone else is asking us to do it. While we might not like them, having a budget does help. In divorce planning — whether you are going to litigation,…See More
Sep 18
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

Badge

Loading…

About

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

Badges  |  Report an Issue  |  Terms of Service