One of the ramifications of a divorce is the negative impact it can have on one’s finances. For Georgia parents who want to send their children to college, this can be a concern. However, there are certain ways they can plan effectively.
The first step to take is to look at their situation realistically. Dividing a household into two means that the income will also be divided, which can affect how much a parent can contribute to college savings. Certain expenses, including spousal support and child support, will have to be prioritized over spending for college.
Parents should expect college plans for their children to change as they make financial adjustments in the other parts of their lives to adjust to the reduction in income. Parents may have to reconsider whether they want to send their children to a public university or a private institution. Serious thought should also be given incorporating any student loans, scholarships or grants for which the children may qualify into the adjusted financial plan for college. Parents who are sending multiple children to college may be able to take advantage of discounts or deferments.
Another planning option that is available to parents is a 529 savings plan. Parents are able to place money into the plan tax-free. They will also not be assessed taxes if the funds are withdrawn and used towards valid education costs. Funds that are already designated as college funds lessen the burden for divorcing parents to seek other sources of money, like the proceeds from the sale of the family home.
A divorce attorney may work to pursue favorable divorce settlement terms on behalf of clients. Litigation might be used to resolve divorce legal issues, including disputes regarding asset division, spousal support, child support, child support and modifications to existing divorce orders.