Many people in Fort Lauderdale are aware of how expensive college tuition is today. Even if your child goes to a state school like Florida State or the Univeristy of Florida, you could still be looking at tens of thousands of dollars in tuition costs. If you are divorced or going through a divorce, it could all fall on you if you don’t make a plan with your ex now.
Amid discussions about spousal support, child support, property division and other common divorce issues, it is easy to forget about college tuition. If your children are young, you may not have thought much about college at all. However, the benefits of starting that conversation now far outweigh the benefits — if there are any — of putting it off. So where do you start?
You may want to start by discussing how much each of you is will contribute. Will your child be expected to chip in, or do you want to foot the whole bill? Maybe you decide that each of you will put a certain percentage of each paycheck into a college savings fund, which brings us to the next important point.
Put any money you set aside into an account that is specifically for college tuition, such as a 529 plan. Money that goes into these accounts can only be used for college-related expenses. Plus, they are tax-free. Keeping your college savings in this type of account will ensure that neither you nor your ex can make withdrawals for unrelated expenses.
Getting a start on college savings while you are going through the divorce process is a smart decision. It will allow you and your ex to be on the same page about how tuition will be handled when your child is ready for college, and it will ensure that neither one of you is stuck with the entire bill should your relationship become contentious over time.
Source: Huffington Post, “4 Ways Divorced Parents Can Plan For Their Kids’ College Tuition,” Geoff Williams, Feb. 28, 2014