There are few things more important to parents than having their child receive a formidable education. However, for divorced parents, agreeing on higher education is often a difficult matter. Please continue reading and speak with our California divorce attorneys to learn more about how divorce and college education. Here are some of the questions you may have:
What should my divorce agreement include regarding finances for my child to attend college?
As you know, your divorce agreement will encompass a wide array of divorce-related issues, including terms of child custody, child support, alimony, and more. If you plan on having your child attend college in the future, you should also include terms regarding your financial agreement when it comes to college tuition and additional educational-related matters. For example, your agreement should clearly state that both you and your former spouse should consent to which college your child chooses to go to. Without specifying this need for consent, one parent may have to pay for, or contribute to, paying for a college that he or she does not want his or her child attending. Additionally, you should also understand that in many cases, establishing the need for consent should give the supporting parent the right to withhold his or her consent to a child attending a private college for financial reasons.
What is a 529 plan?
In many cases, 529 plans are fantastic means for divorced parents to mitigate the financial impact of paying for their child’s higher education. Essentially, a 529 plan is one of the only accounts that allow for tax-free growth, making it a fantastic option for parents and their children. Every state has a different 529 plan, which is why you should first familiarize yourself with California’s 529 plan. It is critical that you understand your state’s 529 plan because, for example, though many states offer tax-deductible contributions, contributions to the California 529 plan are not tax-deductible on state income tax returns. This is just one key difference that parents in California should understand. If you are the custodian parent of your child’s 529 plan, you should also look out for various other complexities that may adversely affect the plan. For instance, if you withdraw too much cash, withdraw cash for ineligible expenses, or even withdraw cash at the wrong time, your child may receive a tax bill as a result. For any additional questions, 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.