Being able to send children to the college of their choice is a concern for many Florida parents. Unfortunately, this goal can be even more difficult if parents are getting a divorce and facing new financial obstacles. With careful planning, however, divorcing parents can make sure that they will be able to afford their children’s college tuition expenses.
Investing funds in a 529 plan is one route divorcing parents can take toward set aside money intended to pay for college. This type of account allows money to accumulate with no taxes, and there will be no taxes assessed when the money is withdrawn as long as it is applied toward educational expenses. However, parents should already begin using a 529 plan or similar accounts for college funds before filing for divorce.
Accounts such as the 529 plan are typically owned by just one parent. However, it will be necessary to specify in the divorce settlement agreement exactly how the funds are to be used. This is because the ownership of the plan can be transferred, the designated beneficiary can be changed and the funds can be accessed and withdrawn.
In some situations, it may be necessary to consult a financial expert to gain a complete financial understanding during a divorce. By consulting with the expert while the divorce agreement is being negotiated, one can be financially prepared.
A child support attorney could help a client navigate child support legal issues. For example, legal counsel might petition the court for official modifications to existing child support orders if a client’s financial situation has changed or if there are additional educational expenses that have to be paid.