How Do Divorced Parents Pay for College?

New Jersey is one of the few states that allows a family court judge to require divorced parents to pay for their children’s college education. If the couple’s child or children have the ability and desire to continue their education after graduating from high school, both parents may be required to pay for tuition, room, and board, and other related expenses, provided they are financially able to meet those financial obligations. While federal or state loans may be available to help offset the high cost of college, this is a substantial expense that both spouses will be responsible for paying. If you are divorced or in the process of getting a divorce, and you have questions or concerns about how to pay for your children’s college and who is financially responsible, it is highly recommended that you contact an experienced divorce lawyer as soon as possible.
What Factors Determine Both Spouse’s Responsibility for Paying for College?
In the 1982 case of Newburgh v. Arrigo, the New Jersey Supreme Court ruled that parents’ duty to provide their children with an education should include college. That means if your children intend to go to college after graduating high school, and they applied to and were accepted to a college or university, you and your former spouse are legally obligated to contribute a percentage of the college expenses. The Newburgh v. Arrigo case is the cornerstone of any college contribution analysis. It provides a list of factors that the courts must consider when determining the financial obligation of each parent, including the following:
- Whether the parent, if still living with the child, would have contributed to college costs.
- The effect of the parent’s background, values, and goals on the reasonableness of the child’s expectation for higher education.
- The amount of the contribution sought by the child for the cost of college.
- The ability of each parent to pay for college.
- The relationship of the requested funds to the specific school or course of study the child is pursuing.
- The financial resources of both parents.
- The commitment to and aptitude of the child for the requested education.
- The financial resources of the child.
- The ability of the child to earn income during the school year or breaks from school.
- The availability of financial aid in the form of college grants and loans
- The child’s relationships with the paying parent, including mutual affection, shared goals, and responsiveness to parental guidance.
- The relationship of the education requested to any prior training and the overall long-term goals of the child.
While the above list addresses many issues, additional factors may be considered. Every family’s financial situation is unique, which could limit or expand the colleges that the family can afford. Once the court considers the factors of the case, a judge may order both parents to pay a percentage of the college costs, which can include SAT prep courses, application fees, books, a new computer, transportation to and from school, in addition to tuition and room and board. A judge may also determine whether the child should be allowed to take out a loan or attend a more expensive private school instead of a more affordable state school. These issues should be addressed in the Property Settlement or the Marital Settlement Agreement. However, if the marital agreement does not address college tuition, the court will consider the abovementioned factors and resolve the issue.
How Are College Costs Split Up Between Both Spouses?
The divorce agreement often addresses college expenses and how the tuition and other expenses will be split. For example, the divorce agreement may specify that one spouse is responsible for paying the tuition, and the other must pay for room and board, books, and food for all four years. Sometimes, the college costs may be split 50/50, and spouses will share the expenses equally. If the divorce agreement does not address who is responsible for paying for college, the court will decide whether or not both parents can pay for college. The court will consider a range of factors when making this decision, including the following:
- Equity in a home
- Bank accounts
- Brokerage accounts
- Savings bonds
- Retirement funds
- Business interests
- Life insurance cash value
If a non-custodial parent claims that they are unable to afford their share of the college expenses but have spent a significant amount of money on expensive cars, lavish vacations, and designer clothing, the court should be advised of these details so that a judge can address the issue and require the non-custodial parent to make the payments they are legally required to make. In addition, even if the child earns an income while going to college, the parents should not expect the child to contribute to their tuition or living expenses. The child’s income should not be considered a substitute for the parents’ financial obligation to pay for college. In fact, in the State of New Jersey, divorced parents are expected to experience an economic sacrifice to pay for their children’s college education. In addition, the courts will not use the cost of a state college or university as a ceiling for college contributions.
The Morristown Divorce Lawyers at Lyons & Associates, P.C. Address Questions and Concerns About Paying for College After Divorce
If your child is attending college and you have questions or concerns about how to pay and who is responsible for what expenses, do not hesitate to contact the Morristown divorce lawyers at Lyons & Associates, P.C. We will address your questions. To schedule a free, confidential consultation, call us today at 908-575-9777 or contact us online. Located in Somerville, Morristown, and Freehold, New Jersey, we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.