After Our Divorce, How Does a 529 College Savings Plan Factor Into Our Child's College Expenses?

After Our Divorce, How Does a 529 College Savings Plan Factor into Our Child's College Expenses?

Illinois Divorce Lawyers Answer Your Questions About Paying for College

College savings plans, including those authorized under Section 529 of the Internal Revenue Code, must be considered when a court is determining whether divorced parents will be ordered to help their child with college expenses. Any college savings account created before the parents' divorce is considered to be a financial resource of the child.

According to Illinois law, divorced parents can be required to help their children cover the costs of attending college or other post-secondary education programs. In making a determination regarding such help, courts in Illinois must consider the financial resources and needs of each parent, as well as the financial resources of the child.

What Are 529 Plans?

Section 529 of the Internal Revenue Code authorizes certain savings plans to be created for the purposes of funding post-high school education. These plans—known as "qualified tuition plans"—are afforded tax advantages, and they are often sponsored by state agencies and individual schools and universities. For example, a 529 plan can be used to "lock in" current tuition rates at a public college for a student who plans to attend that school in the future.

When determining whether to order divorced parents to help their child pay for college, the court will consider money in a 529 plan to be a resource that belongs to the child. Any contributions made to a plan by a parent after the order is entered will be considered part of that parent's contribution toward the child's college expenses.

To learn more about a child's contributions to his or her own college education, please see our FAQ video "Will My Children Be Expected to Contribute to Their Own College Expenses?"

Parents should understand when they may be required to help their children pay costs related to their college education. After considering what resources will be available to the child, including college savings funds, money they have earned on their own, and scholarships and grants they have received, a court may determine that some or all of the remaining costs will be shared by the child's parents. A parent who is ordered to contribute to these expenses may make payments to the child, to the other parent, or to a trust where funds will be held, or they may make payments directly to a college or university.

In addition to considering the needs of the child as they pursue their education, the amount that a parent may be required to contribute will depend on their own financial resources. There are limits on how much a parent may be required to pay, and the parents' share of college expenses generally cannot be higher than the costs the child would need to pay if they attended the University of Illinois at Urbana-Champaign during the academic year in question.

Contact Our DuPage County Divorce Attorneys for Non-Minor Support

If you are the divorced parent of a child who will soon be headed to college, an experienced family lawyer can help you understand all of your rights and responsibilities. Contact our office by calling 630-665-7300 and schedule your confidential consultation today.

I Don't Want to Get Divorced. Can I Fight a Divorce?

I Don't Want to Get Divorced. Can I Fight It?

DuPage County Divorce Attorneys Recommend Not Contesting Your Spouse's Divorce Filing

You entered into your marriage believing the vow, "until death do us part," but now it appears that the end will come much sooner. Perhaps your spouse filing for divorce caught you by surprise, or maybe it was a foregone conclusion after years of difficulty. Either way, if you think you want to fight the divorce in court, you should consider the following:

Under Illinois law, if a person chooses to end their marriage, they can usually do so, even if the other spouse does not agree that the marriage should end. Since Illinois is a "no-fault divorce" state, the only reason a person will give for seeking a divorce is "irreconcilable differences." In their divorce petition, they will state that the marriage has broken down to the point that it cannot be repaired.

While one spouse may wish to contest the claim that there are irreconcilable differences, Illinois law also states that if spouses live "separate and apart" for at least six months, irreconcilable differences will be presumed. A spouse can claim that a couple has lived separate lives even if they are residing in the same home. Because of this, attempting to contest a divorce petition is usually not worth it, and it will only serve to delay the divorce proceedings. A couple can choose to reconcile and dismiss their divorce, but until that happens, it is usually best to proceed with the expectation that the marriage will be ending.

At Mirabella, Kincaid, Frederick & Mirabella, LLC, we understand the emotional and physical strain caused by divorce, whether you expected it or not. If your spouse filed for divorce, your thoughts should now shift from marriage preservation to protecting your interests and your future.

A divorce filing strongly suggests that your spouse already has legal representation for what lies ahead. Do not delay any longer in securing a skilled divorce lawyer. At our firm, we have decades of experience in:

• High net-worth divorce
• Child custody and visitation
• Spousal maintenance/alimony
• Child support
• Property distribution

Once your divorce is finalized, if any issues arise in the weeks, months, or years ahead, we can assist with any necessary post-divorce modifications or enforcement of child support or child custody orders.

Is Divorce Mediation a Good Idea?

Even if emotions are high, and collaboration with your soon-to-be former spouse does not seem likely, mediation could help bridge the gap between you. It can provide a method to reach agreements together and avoid the anger that often escalates as a divorce works its way through the court system. It is less expensive than divorce litigation, and it may reopen the lines of communication and allow for long-term co-parenting success.

You do not have to agree on everything as long as you approach the mediation process with a positive mindset. You might not feel like you can do that at first, but take some time, and weigh it against the alternative of stressful and costly divorce litigation. An attorney at our firm can sit down with you to discuss all available options so you can decide the path that is best for you.

Contact a DuPage County Divorce Lawyer

At Mirabella, Kincaid, Frederick & Mirabella, LLC, we strive to make the divorce process as easy as we possibly can for you. This is a difficult chapter in your life, but there are many good ones ahead, especially when you plan for your future with an experienced legal professional. Contact a Wheaton, IL divorce attorney at 630-665-7300 for an Initial Attorney Meeting.

Will My Children Be Expected to Contribute to Their Own College Expenses After My Divorce?

Lawyers Help Divorced Parents and Their Children in DuPage County

A child of divorced parents may be required by the court to contribute toward their own college expenses. These contributions may take the form of scholarships, grants, or the child's wages, as well as funds saved in a 529 college savings plan. The court's decisions in these matters will be based on the financial situations of both parents and the child.

Contributions to College Expenses by Divorced Parents

Under the Illinois Marriage and Dissolution of Marriage Act (IMDMA), parents who are divorced or who are going through the process of a divorce may be ordered to help their child with college expenses. Whether such contributions are required and how much each parent must contribute will depend upon the financial resources and needs of each parent.

The court will consider the financial resources of the child or student as well. The court has the authority to order the child to contribute toward his or her own post-high school expenses. For the purposes of this determination, a child's financial resources may include any scholarships or grants for which the child is eligible, in addition to any income generated by the child's employment. Any money that is being held in a 529 college savings plan is also considered part of the child's financial resources. (Learn more about 529 college savings plans and divorce.)

When parents are ordered to assist in paying college expenses, they may be required to help address certain needs. Contributions may address the costs of tuition, room, and board. Parents may also help pay for transportation, medical expenses while the child is at school, books, supplies, fees, and college entrance exams.

There are also certain limitations that apply. In general, parents will not be required to pay more than the cost of tuition, room, and board at the University of Illinois at Urbana-Champaign during the same school year. The child will also be required to maintain an equivalent of a "C" grade point average. Parents' obligations to contribute to college expenses will end when the child graduates and receives a bachelor's degree, gets married, or turns 23 (this age may be extended to 25 if a court believes there are circumstances justifying it).

Contact Our Wheaton Divorce Attorneys for College Expenses

Illinois law allows the court to order contributions toward a child's college expenses as a special form of child support for a non-minor child. There are many factors that the court will consider in making these decisions, and it is important to know your rights throughout the process. An experienced DuPage County family law attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC can help you understand your situation and build a case designed to protect your best interests and those of your child. Contact our office by calling 630-665-7300 today.

Do I Have to Pay Maintenance if My Spouse Refused to Work During Our Marriage?

Do I Have to Pay Alimony to a Spouse Who Was Unemployed or Underemployed By Choice?

DuPage County Divorce Attorneys Explain Factors Affecting Spousal Maintenance

Divorce can put a person who makes far less money than their spouse at a serious disadvantage when they restart their life after marriage, especially if they put their career on hold to dedicate much of their time to raising children. Spousal maintenance (also called alimony or spousal support) is meant to ease that transition after a marriage ends. Eligibility for maintenance is determined based on a number of factors, including the income of each spouse, and the respective present and future earning capacity of each party.

So what happens if a person chose to remain unemployed or underemployed while they were married, despite a spouse begging them to do otherwise?

At Mirabella, Kincaid, Frederick & Mirabella, LLC, we understand how complex legal issues related to alimony may affect your divorce, and we can provide a detailed estimation of what you can expect to pay and the length of time those payments may be expected.

How Much Alimony Will I Have to Pay?

The answer to that question involves a lengthy list of variables, including but not limited to:

• The length of the marriage.
• The potential of your spouse to become economically self-sufficient.
• Each party's education and employment history.
• Each party's age and health status.
• The amount of marital property and how it will be divided.
• The previous standard of living during your marriage.
• Contributions your spouse made to your education, career, or income-earning ability.

If a judge determines that your spouse has refused to get a job or intentionally earns less than they should be able to based on their education, skills, and work experience, the judge may "impute" income for your spouse. That is, they may determine an amount that your spouse should be able to earn, and that figure will be used when determining whether spousal support should be awarded or how much should be paid.

In Illinois, spousal support is in no way based on behavior that might have led to the divorce. Eligibility for spousal maintenance is determined by one spouse's need to receive it and the other's ability to pay the ordered amount for a set period of time. Temporary spousal maintenance may be required throughout the divorce process, and it may last until the divorce decree is finalized. A divorce decree or judgment may include fixed-term maintenance that will be paid for a number of years, and the duration of the payments will typically be based on the length of your marriage. Other arrangements may also be made, such as maintenance that is meant to help your spouse pursue an education, with the need for ongoing support being reviewed after a certain amount of time.

Under current federal tax laws, spouses paying alimony cannot deduct spousal support from their gross income when calculating taxes owed. The payments a person receives will not be considered taxable income.

An experienced divorce lawyer can discuss potential spousal maintenance outcomes in your case, while also addressing all other aspects of your divorce. It is critical that you secure qualified legal representation early in the process to ensure that your long-term financial interests are protected.

Contact a Wheaton, IL Spousal Support Attorney

If you feel that your ex-spouse is not entitled to alimony because they chose not to work full-time or at all, the court may agree. At Mirabella, Kincaid, Frederick & Mirabella, LLC, we can advocate on your behalf to ensure that the decisions made during your divorce will be fair and reasonable, ensuring that you will have the financial resources you need as you move on to the next stage of your life. Contact a DuPage County divorce lawyer at 630-665-7300 for an Initial Attorney Meeting.