How College Education Costs are Decided in Divorce

During this month, I start to hear lots of back-to-school commercials and rumblings that summer will end in the not-too-distant future.? It always makes me feel melancholy.? For many parents, August marks the start of their child’s college career and a time of pride and excitement. It marks the beginning of a transformative journey into adulthood; an experience that provides an ample mix of academic, social, and personal growth opportunities. While this new phase is usually welcomed with great enthusiasm, parents can experience anxiety surrounding its financing. With tuition and fees for private institutions averaging more than $40,000 per year, the thought can be particularly daunting. Divorced partners - or those amid proceedings - can minimize future uncertainty by understanding how the financing of college expenses is decided.

The framework for the allocation of post-secondary education expenses is found under Section 513 of the Illinois Marriage and Dissolution of Marriage Act.? Under this statute, one or both parents may be required to contribute towards their child’s college tuition. The court also has the authority to order contributions towards additional costs like room and board, books, transportation or auto insurance, medical insurance, and other relevant expenses.

A fair and equitable distribution of college costs is based on each parent’s financial capability.? The court determines this by considering the income and assets of each party.? Rather than an equal split, the court decides what is equitable, meaning each parent’s required contribution should be fiscally realistic and sustainable.? It is not unusual after considering all factors that each parent is required to contribute to the overall costs of college proportionately based on their incomes or wealth.? For example, if the combined income of the parents is $250,000 and one parent earns $50,000 while the other parent earns $200,000, the lower earning parent’s contribution could be 20% while the other parent could be ordered to contribute 80%.

Do not expect the court to simply order a “blank check” for a child’s secondary education ambitions. Academic performance, future career goals, schooling requirements for the child’s chosen profession, and other factors will be thoughtfully analyzed.? A court’s authority under Section 513 to require each parent to contribute terminates if a child fails to maintain a cumulative “C” grade point average, attains the age of 23, if the child receives a baccalaureate degree or marries.

Even if your child’s future college enrollment is years away, parents are encouraged to include expense provisions in divorce settlement agreements. That said, it is difficult to force a party to make provisions for college (or vocational school) if post-high school education is too far in the distant future.? That is because the issue must be ripe for a court to decide, which includes knowledge of the school the child will attend, along with information on any scholarships offered and available financial aid. ? ?

Once an agreement is reached (or a court rules) on each parent’s contribution to a child’s college education costs, an order should be prepared and entered which covers how 529 accounts, if any, will be allocated, when and how payments from each parent are made for the different category of expenses such as tuition and reasonable living expenses, and when each parent’s obligation terminates.? Should a parent’s financial situation change, it is indeed possible to seek a modification to the original agreement or have a new court order issued regarding college expenditures. Be advised that a parent may seek legal enforcement if his or her partner fails to comply with an agreement or court order.

Parents can prevent a disturbance to their child’s learning by addressing such an issue as soon as or before it becomes one.? If you are in need of a legal agreement to outline the financing of your child’s college expenses, I am here to help: [email protected]