Tag Archive for: college tuition

College Scholarships and Divorce – Who Has to Pay?

We wrote a recent blog about children’s student loans and divorce. But what about children’s scholarships? How are those handled?  

Unlike other states, parents in PA do not have a financial obligation to pay college tuition.  However, to reduce conflict, you may want to negotiate tuition payments as part of your divorce process.  The effect of scholarships on college costs should be part of the negotiations before settlement. A “motion to modify” can be filed afterwards, but this can be a difficult and time-consuming process, so it is best if all contingencies are considered before the divorce is settled. Here we will consider several possible scenarios.

GI Bill

A parent who has been in the military is able to transfer his or her Post 9/11 GI Bill benefits to a spouse or child, under certain circumstances. If the military person is the father, for instance, he may negotiate that this will cover his portion of college expenses for several children, or perhaps decrease child support payments. But since the transfer can be revoked at any time while he is still on active duty, a settlement or final judgment must either prohibit the revoking of the transfer or provide for compensation in the way of payment, alimony, or another benefit of equal or greater value.

Parent works for a university

Universitites often offer significant tuition discounts to their employees’ children. This should also be part of the settlement. Contingencies must also be included in case the parent leaves the university, changes universities, or the child does not wish to attend that university where their parent works. In these cases, what is each parent’s responsibility? And will the discount reduce just that parent’s educational responsibilities, or will the benefits be spread between the two parents? These and other questions need to be considered and answered in the settlement.

Other scholarships

Additional scholarships are available as well, including many scholarships for the children of divorced parents. The divorcing couple needs to decide how this will impact the final amount each one is responsible for. If one parent works diligently with the child to find as many scholarships as possible and the other parent does nothing, do the scholarships benefit just the parent who worked so hard or do they reduce the responsibility of both parents?

There are no set laws regarding division of the benefits of scholarships, therefore this needs to be carefully reviewed and defined in the divorce settlement. We at Ulmer Law have extensive experience helping parents navigate all the intricate details involved in creating a settlement that provides for their children as best they can while covering their own assets. Contact us for a consultation.


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Child Custody Expenses in High Income Cases

The definition of “high income” and the calculation of support varies from state to state. In Pennsylvania, Rule 1910.16-3.1. of the Pennsylvania Code defines high income as the combined net income of both parents in excess of $30,000 per month. The monthly child support formula, which includes a base figure plus a percentage of income, is calculated depending on the number of minor children to be supported. This figure is then divided between the parents according to their income and the number of overnights a child spends in each home.  

A judge has the option to adjust this figure as necessary, based on a number of factors. For instance, if a child has special needs or extraordinary medical bills, the judge will make sure the child’s needs are sufficiently covered, to the extent that the parents are able. Often, children from high-income families attend private school and/or have expensive extra-curricular activities. The judge may further adjust support to maintain the standard of living to which the child is accustomed.

Additionally, if there is a great discrepancy in the income of the parents, the judge will consider the living standards of the lower-income parent. The judge may adjust support in order to maintain a comfortable standard of living for children when staying with either parent. When making these decisions, the best interest of the children is always the goal.

Child support ends when the child turns 18 or graduates from high school, whichever comes later. The paying parent, however, should not depend on the court system to terminate the standing order. If the parent wants to end support, he or she should file a motion to modify child support shortly before the legal ending date, to allow time for the process to take place.

Given that mandatory child support ends at the end of high school (or at 18, whichever is later), it follows that contributing to the cost of college is not required. If this is an important goal, it’s best to come to an agreement, in writing, before child support is calculated by the courts. Once it is in writing, this agreement becomes binding, and the supporting parent is obligated to maintain the support as written. As with any contract, not paying the tuition would be a breach of contract and the spouse can be taken to court, where the judge can order payment.

As with all Pennsylvania child support issues, it is always a good idea for parents to consult an attorney.  We can determine if the guidelines have been followed and if an agreement is fair. Furthermore, we can make sure that all of your paperwork is filed correctly with the court.  

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