If you are a parent, there is a very good chance that you are looking to send your child to college when the time comes. That being said, if you are a divorced parent, you may be wondering whether you can afford college for your child. Fortunately, you do have several options. Read on and reach out to our experienced California divorce attorneys to learn more about how to plan for your child’s college education as a divorced parent.
Can college finances be included in a divorce agreement?
Divorce agreements are typically comprehensive documents used to outline the terms of a divorce. They include several critical issues, including child custody, child support, alimony, property distribution, and more. If you want your child to attend college or higher education in the future, you can opt to include terms regarding you and your former spouse’s financial agreement when it comes to sending your child to college. You must be specific regarding whether you and your spouse consent to whichever college your child wishes to attend; if you don’t, one parent will have to pay for a school he or she doesn’t want his or her child going to.
What is the purpose of a 529 plan in California?
If you are a divorced parent concerned about your child’s educational future, you and your former spouse should strongly consider creating what is known as a 529 plan. Essentially, a 529 plan is an account you can set up that warrants tax-free growth, making it far easier for both parents to afford their child’s higher education when the time comes. California’s 529 plan is different than other states’ 529 plans. The first key difference that you should note is that in California, contributions made to a 529 plan are not tax-deductible, as they are in many other states. Further, custodial parents should also be aware that in many cases, certain scenarios can drastically affect the outcome of such a plan. For example, if you withdraw too much cash from the plan, withdraw cash for ineligible expenses, or you simply withdraw cash at the wrong time, there is a very good chance that you will be affected adversely, such as by receiving an unwanted tax bill. If you have any further questions about these plans or otherwise would like to learn more about planning for your child’s higher education, please do not hesitate to give us a call today.
Contact our experienced Los Angeles firm
Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.