When two people decide to get divorced, their finances can unfortunately take a hit. If they have children and were planning for the children’s college expenses prior to the divorce, their college-savings plans may take a hit, too. However, a couple of steps may help them to keep their marital dissolution from sabotaging their children’s college education in Massachusetts.
First, it is critical that the divorcing parents are realistic about their financial situation. If they are facing financial struggles as part of the divorce proceeding, they may have to put their college-savings plans on hold until they can recover financially from the divorce. Then, when they are ready to start saving again, it may behoove them to make sure that they have 529 plans in place for their children.
These types of plans offer the advantage of allowing parents to put money in them and watching it accumulate tax free. When children are ready to use the money for higher education expenses, they will not be taxed on the money — an added bonus. However, some families may also want to look at other resources for financing a higher education, such as grants, student loans and scholarships.
Divorce can be hard to navigate both emotionally and financially. However, if two parents are willing to find common ground when it comes to diving property and planning for their children’s futures, for example, they may be able to avoid traditional divorce litigation. An attorney in Massachusetts can help a spouse who is going through divorce to pursue the most personally favorable outcome possible given the circumstances surrounding the marital breakup.
Source: cnbc.com, “How to keep your divorce from sabotaging your children’s college education“, Lorie Konish, May 18, 2018