Taking care of the children is one of the most important issues Michigan parents deal with when their marriage ends. As the divorce proceeds, parents will make decisions regarding custody, child support and how the parties will pay for higher education. Many couples make agreements regarding the payment of college expenses such as tuition, books and room and board. Of course, it is best if these commitments are formally included in the divorce settlement.
One out-of-state father made such an agreement with his ex-wife regarding the payment of law school or graduate school for their daughter. Their agreement provided for each parent to bear 50 percent of the cost of tuition, books, room and board and other school related expenses if the daughter maintained a “C” average. Documentation regarding their daughters grades, financial aid and class schedule were to be provided to the father.
Years later, the parties’ daughter decided to attend Cornell Law School. The father refused to pay the $112,500 determined to be his portion of the expenses for her post-graduate education. Both the New Jersey trial court and appeals court ruled that the man was obligated to pay in accordance with the divorce settlement.
Michigan parents are not necessarily obligated to provide for a child’s college education. If the parties agree to do so, that agreement should be outlined in detail in the divorce settlement, and parents may benefit by considering as many possible contingencies as possible. For this New Jersey father, the agreement may not have been specific enough — no limitations other than grade point average were outlined. Parents can specify details like how much each party will contribute, what the money is to be used for and possibly even what colleges the child may attend to receive the financial assistance. Moreover, the respective financial position of each parent may be an important and determining factor.
Source: The Huffington Post, Divorce Settlements and Higher Education, Brad Reid, March 11, 2014