Month: October 2024
College Funding and Divorce: Strategies for Navigating Educational Expenses (Ep. 8)

College Funding and Divorce: Strategies for Navigating Educational Expenses (Ep. 8)

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Who covers college costs after divorce? 

Sorting out educational expenses can be daunting, especially with the added stress of financial aid rules and safeguarding your child’s future.

Gabrielle Clemens, JD, LLM, Certified Divorce Financial Analyst, and Accredited Estate Planner, shares practical strategies to help co-parents navigate college funding challenges before, during, and after divorce. She covers essential financial topics, including how to craft comprehensive divorce agreements that address tuition and related costs, make the most of tax-friendly 529 plans, and save money with smart transfer strategies. 

Whether you’re in the midst of a divorce or planning ahead, tune in and get the insights you need to confidently handle college funding and protect your child’s educational future!

Key Insights:

  • College Funding in Divorce Agreements: Gabrielle emphasizes the need for detailed agreements addressing college expenses early in the divorce process, covering tuition, prep courses, travel, and other educational costs. Cost-sharing methods can vary, including 50-50 splits or contributions based on income
  • 529 Plans and College Savings: Discover how 529 plans offer significant tax advantages for college savings and why specifying future contributions in your divorce agreement is crucial. Contributions from relatives like grandparents typically don’t count toward the marital estate, offering additional flexibility
  • Transfer and Cost-Saving Strategies: Gabrielle discusses cost-saving options like transferring from community colleges to more prestigious schools and highlights the importance of confirming credit transferability. She also explains how summer courses at target institutions can boost admission chances and earn credits
  • FAFSA Changes and Financial Aid Considerations: Learn how new FAFSA rules prioritize the parent who provides the most financial support, altering financial aid eligibility. Understand the complexities surrounding divorce, remarriage, and step-parents’ financial contributions
  • Co-Parenting Challenges in Financial Matters: Effective co-parenting requires cooperation in financial aid processes, including filing forms and sharing financial data. Gabrielle recommends including provisions in divorce agreements to ensure future compliance
  • The Impact of Remarriage on Financial Aid: Explore how a step-parent’s income can influence financial aid calculations and what parents should know before remarrying
  • The Importance of Comprehensive Agreements: Addressing all potential costs and planning for future changes, such as job loss, can prevent disputes later on. Gabrielle advises consulting with a college financial advisor for a customized plan
  • And much more!

Resources:

Connect with Gabrielle Clemens: 

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Retirement Assets in Divorce (Ep. 7)

Retirement Assets in Divorce (Ep. 7)

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This week on Marriage Is About Love Divorce Is About Money®, Gabrielle Clemens, JD, LLM, Certified Divorce Financial Analyst, and Accredited Estate Planner discusses the financial aspects of divorce, focusing on the division of retirement and non-retirement assets.

She emphasizes the importance of understanding tax implications and the processes involved in equalizing assets during a divorce, covering the distinction between marital and separate property, the complexities of qualified plans, and the necessary steps to ensure a fair division of assets.

Key Insights:

  • Retirement vs. Non-Retirement Assets: It’s essential to differentiate between retirement and non-retirement assets when dividing them in a divorce
  • Challenges of Commingling Assets: By keeping a clear record of pre-marital assets and working with your attorney, you can better identify what remains solely yours
  • IRA Transfers: A straightforward option for dividing retirement assets. A “Transfer Incident to Divorce” can move funds without tax penalties if enough is available in an IRA
  • Tax Planning in Divorce: When dividing retirement assets, be cautious of tax implications, especially if taking distributions before 59.5 years of age, as early withdrawals can trigger both income taxes and a 10% penalty
  • And more!

Resources:

Connect with Gabrielle Clemens: 

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