How To Plan For Your Kids’ College Costs During Divorce

Major life transitions like divorce can change almost every aspect of your financial Paying for college can be complicated enough when parents are together. Add divorce, two households, different financial priorities, and potentially very different ideas about who should pay for what, and planning for your child's education can quickly become another source of conflict.Strategic Divorce Consultant Mardi Winder talks with Brian Eyster, creator of the G.R.A.D. Process™, about approaching college planning strategically while keeping the family's larger financial picture in mind.Brian explains why he believes there is no single right way to fund a college education. Rather than automatically choosing a 529 plan, prepaid tuition program, or another commonly recommended option, parents should first determine what they are trying to accomplish and then consider the strategies that best support those goals.For divorced and divorcing parents, these conversations become even more important. Mardi and Brian discuss why parents may want to address future college expenses during the divorce process rather than relying on informal promises about what each parent intends to do years down the road. They also talk about balancing the desire to help children graduate without overwhelming debt with the need for parents to protect their own long-term financial security.Q&AQ: Should every parent use a 529 plan to save for college?A: Not necessarily. Brian explains that 529 plans can be useful tools, but he cautions against assuming they are automatically the best choice for every family. College planning should consider the family's cash flow, existing assets, tax situation, retirement goals, and individual circumstances before deciding where the money should come from.Q: Why should college expenses be discussed during divorce?A: What parents agree to informally today may look very different several years after the divorce. Relationships, finances, and circumstances can change. Discussing expectations during the divorce process gives parents an opportunity to clarify what each person intends to contribute and, where appropriate, address those expectations more specifically in their settlement agreement or divorce decree.Q: How can paying for college affect retirement planning?A: Money used for tuition is money that is no longer available for other purposes, including continued investment for retirement. Brian encourages parents to consider the long-term impact of their college-funding decisions instead of looking only at the immediate tuition bill.Q: What should parents decide before choosing a college-funding strategy?A: Start with the objective. Brian recommends that parents first determine what they actually want to accomplish. Do they intend to pay all tuition, contribute a specific amount, help with certain expenses, or take another approach? Once the objective is clear, they can begin evaluating the different ways to fund it.Q: Is there anything parents should consider when their child turns 18?A: Yes. Brian points out that once children become legal adults, parents may no longer automatically have the authority to step in if a medical or other serious situation occurs. Families should speak with an appropriate legal professional about documents their young adult may need before leaving for college.About the Guest:Brian S. Eyster, CCFC®, CCFS®, ELA™, LIC, CIA is the founder of the G.R.A.D. Process™, a system that helps families pay for their children’s college education without sacrificing their retirement. With 28 years in financial services and a personal background in planning for his own children’s education, he specializes in cash flow management, risk mitigation, and resource allocation. He regularly speaks on topics such as creative funding for college and tax-advantaged strategies, drawing on years of experience helping families navigate complex financial decisions. Brian lives in Metro Detroit with his wife, two children, three cats, and enough guitar, tennis and baseball gear to outfit three generations.To connect with Brian:Website: www.essentialstrategies.netCertified College Funding Specialist: https://www.hireaccfs.com/brian-eysterLinkedIn: https://www.linkedin.com/in/brianseyster/Facebook: https://www.facebook.com/EssentialStrategiesLLCAbout the HostMardi Winder is a Strategic Divorce Consultant and High-Conflict Divorce Coach who helps high-achieving individuals navigate divorce with clarity, confidence, and control. Drawing on more than 30 years of experience in mediation, divorce coaching and conflict resolution, she supports clients in making smart decisions while reducing emotional and financial fallout, particularly in high-conflict, high-asset and complex divorces. Mardi is the founder of Positive Communication Systems, LLC, and the Strategic Divorce Directory, LLC.For Mardi’s gift: The Resilience Building Blueprint: A 28-Day Journey To A Stronger You https://...