Divorce has a way of shattering your dreams for the future – but you don’t want it to shatter your child’s chance at a college education. It’s important to understand that child support in North Carolina is only mandated until the child in question turns 18 years of age (up to 20 if the child is still in high school). No provision requires a parent to pay for their child’s postsecondary education.
In addition, if you and your co-parent currently have savings set aside for your child’s education, those funds may be viewed as marital assets that have to be divided – and your ex-spouse can simply decide to use the money however they please once you’re divorced.
What can you do to safeguard your child’s academic career? Here are some possibilities.
Make college part of your divorce agreement
If you and your co-parent are working to craft a settlement agreement, put your child’s college education on the negotiating table and advocate for what you want. Insist that your co-parent agrees to continue setting money aside for your child’s education the same way that they would prior to the divorce. Your agreement can even divide the college expenses in whatever way you find fair, so think carefully about exactly what your child’s needs may be.
Establish a trust fund
A trust fund is always an option. Whatever money you have set aside can be placed in an irrevocable trust for your child’s education, which means that it can’t be touched by either parent. Just make sure that you structure the trust in a way that allows for some flexibility in case your child decides not to attend college or is unable to do so for any reason.
Make use of the Uniform Gift to Minors Act
Under the UGMA, you can transfer the money into a special account that is owned by your child. They’ll gain full access to the funds once they turn 18, which can then be used for their college. (The only potential drawback is that your child – not you – will have the final say on how the money is spent.)
Divorce is tough on anybody, but divorcing parents with minor children may have it especially rough. Experienced legal guidance can help you make sure that your divorce doesn’t end their college dreams by exploring all the possible options.
