Colorado parents who are ending their marriages have many things to negotiate and worry about. One of those issues can be how to pay for their children’s college expenses when there are two households to maintain. Before sacrificing a child’s college education, however, parents can try to reach an agreement on how to handle this matter.
Because states differ in the way they handle college education costs when it comes to divorce settlements, there might be confusion as to how the parents should proceed. Additionally, even if college costs are included in the settlement, they usually do not go beyond five years of payments, though they do become the thing that ties the ex-spouses together longest. In the face of a divorce, parents will have to revisit their financial plan for covering college tuition and consider things such as scholarships, loans and other options.
Another way parents can also plan for their children’s college tuition is through a 529 plan, which allows parents to save for college tax-free. Withdrawing from the account is also tax-free, as long as the money is used to pay for college expenses. In a divorce one parent might keep the account, the parents might split it into two 529 accounts or they can both have access to supervise the account.
Whatever option they choose, however, this will be another item to discuss during the settlement negotiations. For Colorado residents in this situation, the assistance of Greenwood Village, Colorado, divorce attorneys might help them navigate a complicated situation.