One of the most significant events in a young person’s life is the decision to go to college. However, if you are a divorced or separated parent, you might be uncertain about what obligations may exist to cover the cost of your child’s college expenses. How will tuition costs be divided? Who will pay for living expenses? In whose name should any potential loans be in? What are the possible tax benefits or consequences of these actions?

While the decision of coordinating finances might sound like a headache, it is possible to navigate this difficult terrain while minimizing any potential conflict. Below are a few tips that can help you do just that and start you on your way towards helping your child realize their dream of attending college.

Know Your State’s Divorce Laws

In New York state, both parents are legally obligated to provide financial support for their children until age 21 (with certain exceptions leading to a child being considered “emancipated”). Section 413 of the New York Family Court Act outlines that parents, if able, are required to pay for child support, which includes care, maintenance and education for any child under 21.

Absent a specific agreement addressing the issue of paying for a child’s college education, a party’s obligation to contribute is within the discretion of the court, acting in accordance with the existing laws and regulations. This means that a court can review the facts and circumstances of a particular case and make a determination as to how much, if any, liability a party has to provide financial assistance to the attending child.

Plan Ahead for College Expenses

The best time to address the issue of paying for college is before it arises. Do not wait until your child starts sending out college applications to begin discussing the expenses with your ex. The future obligations of the parties can be delineated while negotiating a separation agreement. Separation agreements allow two parties to set their own terms of divorce. It allows parties to craft an arrangement acceptable to everyone instead of forcing both to follow a court order that doesn’t work for either.

The question of college expenses can, and often should, be addressed at the time the agreement is being negotiated and drafted. There are many creative ways that the parties can come up with to meet their ultimate goal of aiding their mutual child reach their college dream. For instance, the party paying child support may be able to negotiate receiving a credit against that obligation for any amount paid towards tuition, room, board, etc.

If divorced or separated parents did not address college expenses in their original separation agreement, divorce decree or child support order, it’s not too late. Situations change, and parents can petition the court to modify their child support order to include or modify provisions for college expenses.

How to Best Take Advantage of Education Tax Credits

There are several tax credits and deductions that should be considered when making any decisions regarding the apportionment of college expenses for a child. On the federal level, there are programs such as the American Opportunity Tax Credit (AOTC) that allow tax credits for tuition, and similar tax laws exist at the state level in many states that allow a credit or deduction for college expenses.

The AOTC is a credit for qualified education expenses paid for an eligible student for the first 4 years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

The amount of the credit is 100% of the first $2,000 of qualified education expenses you paid for each eligible student and 25% of the next $2,000 of qualified education expenses you paid for that student.

However, you should consult with a tax professional as to what opportunities are best for you and your child.

Get Your College Tuition Questions Answered Today

If you have concerns about how your child’s college will be paid for following a divorce or separation, it may be wise to speak with an experienced education or family law attorney today. There are many nuances to consider when it comes to how divorced or separated parents should divide up the expense of their children’s college, and knowing what options are available can ease the stress and financial concerns of parents in this situation.

Tully Rinckey attorneys understand parental challenges surrounding your child’s educational needs and they will handle your matter with the attention and tact it deserves. If you have additional questions as a divorced or separated parent of a student, our team of attorneys is available to assist you today. Please call 8885294543 to schedule a consultation, or schedule a consultation online.

Daniel S. Gvertz is a Partner in Tully Rinckey PLLC’s Buffalo office. With nearly 15 years of dedicated practice in family law, Daniel brings a wealth of experience and a deep understanding of the complexities involved in matters of child custody, support, family offenses, and divorce. As a seasoned attorney, Daniel has earned a reputation for providing compassionate and effective legal representation, guiding clients through some of the most challenging times of their lives.

Nicholas A. Marricco is a Senior Associate in Tully Rinckey PLLC’s Manhattan Office, where he focuses his practice on Education Law, Special Education Law, Higher Education Law, Federal Employment Law, and New York State Employment Law. Nicholas has also represented countless families of children with special needs in CSE meetings, CPSE meetings, manifestation determinations, and Impartial Hearings. He is among the few New York State Special Education Attorneys who had an IEP and received special education services as a child. Nicholas’ parents fought for his education as a child and now he zealously advocates for all his clients like his parents did for him.