It is only natural for parents in Las Vegas to want their child to have a good education and go to college, even if the parents are divorced. However, what that education may look like can be a source of conflict for divorced parents who do not see eye-to-eye on the topic. One parent may want to send the child to private college while the other wants the child to attend a state-run university. Or, both parents may agree to send their child to private school but disagree on who should pay the tuition. The following are two options divorced parents may be interested in when it comes to funding their child’s college education.
529 savings plans
Divorced parents can save for their child’s college education through a 529 savings plan. Depending on the state you live in, a 529 plan offers various investment opportunities, and contributions may be tax deductible, at least in part. The parents’ divorce decree should contain restrictions on how the funds in the 529 plan can be used, to prevent one parent from using the funds for their own purposes, rather than the child’s education.
Many students rely on financial aid, and even if their parents are divorced can still submit a Free Application for Federal Student Aid (FAFSA) form. The child’s custodial parent will file the FAFSA. A student may receive more aid if the parent filing out the FAFSA form is also the one who has less in income and assets.
Divorce does not need to derail a child’s education
Parents going through a divorce still have options for paying for their child’s future college education. Each parent’s income and their child custody arrangements can affect how they will save for and fund this education. Provisions regarding college savings can be included in a divorce decree, to clarify matters and avoid conflict down the road.