Charity

Tips to Save for Your Child’s College Tuition After You’ve Gone Through a Divorce

Parents of college-bound students know that paying for higher education takes planning and saving. For divorced parents, it can be particularly complex. Whether they’re paying for the college bills solo or contributing to the expenses in partnership with their ex-spouse, there are a lot of financial and emotional items to consider. If you fall into this category, here are five tips to help you work toward your college savings goal.

Tip #1: if possible, seT aside Time for a conversaTion wiTh your ex-spouse.

If you and your ex-spouse desire to work on funding college for your child together, it may be helpful to have an open and honest conversation to align on a savings strategy. Ask your ex-spouse to pick a time to connect with you on this topic. While it may seem formal, scheduling a conversation will ideally allow both of you to set aside other emotions and get on the same page about funding your child’s college education.

When it’s time to talk, consider bringing in a financial advisor to help facilitate the discussion. A professional can help initiate the difficult topics, offer an informed opinion on how to reach a compromise and provide accountability as you divide and conquer the various expenses (see tip #2). Your divorce settlement may have stipulations or a framework to help guide the conversation. aid, certain grants and loans) after taking into account the amount they expect your family to contribute.

In general, the FAFSA considers the finances of the parent the child has lived with more in the last year when assessing any qualification for aid (and that parent – often called the custodian parent – should complete the FAFSA). If the child has lived with both divorced parents equally, the FAFSA factors in the finances of whomever has provided more monetary support in the last year.

Different factors may be considered in the FAFSA calculation depending on your specific circumstances. Visit the FAFSA website for more details (https:// studentaid.ed.gov/sa/fafsa/). You may also contact the financial aid office at your child’s college of choice for additional help.

Tip #4: pay close aTTenTion To accounT ownership of 529s.

If you or your ex-spouse funded a college savings plan while you were still married, ownership of the account was likely decided in your divorce settlement. (Typically account ownership remains with the spouse who created and/or funds it most often.). If your exspouse retains control of one or more 529 accounts, consider if it makes sense – whether for financial or emotional purposes – to create your own account with your child as the beneficiary.

Tip #2: decide how To divide and conquer Tip #5: seT expecTaTions wiTh your child.

college expenses. Your child is likely considering a multitude of factors

Decide sooner rather than later who will pay for to determine which college may be the best fit – expenses like tuition, books, a laptop, a parking pass, including which one may be the most affordable. Be and room and board. If your child plays an instrument, honest about the type of support he or she can expect participates in a sport or pursues another activity, there from you and your ex-spouse. Bear in mind that this may be additional expenses (e.g. uniforms, travel, doesn’t mean you have to share all the nuances of activity fees) for you to divvy up. If you’re able to come your arrangement. Rather, consider providing key to an agreement, put your game plan in writing to help details to help your child make their choice – and know keep you and your ex-spouse accountable. who to turn to when tuition or a school fee is due. It’s true that divorce may add a few extra steps and Tip #3: fill ouT The fafsa To see your considerations when saving for your child’s college opTions for poTenTial financial aid. tuition. But don’t let the complexity stop you. As a

Regardless of how much you have in college savings, financial advisor, I have helped many clients sort out Putting the needs of clients first is the approach I believe in. I’ll work with you to find it’s important to fill out the Free Application for Federal the details and feel good about their plan and savings. the right financial solutions to help you plan for your unique goals. And together, we’ll Student Aid (FAFSA) annually, starting when your child If you are interested in learning what your options are track your progress over time, adjusting your plan along the way to help get you where is a senior in high school. The FAFSA determines your for reaching this goal, talk to a financial advisor in your you want to go. child’s eligibility for financial aid (including needs-based area.

Renee A. Hanson CFP®, CEP®, CDFA®, CFS®, ChFC®, APMA®

Private Wealth Advisor

Affinity Wealth Advisory Group

A private wealth advisory practice of Ameriprise Financial Services, Inc.

602.923.9800

7010 E. Chauncey Ln Ste 200 Phoenix, AZ 85054 renee.a.hanson@ampf.com affinitywealthadvisor.com

Ameriprise Financial Services, Inc. Member FINRA and SIPC. FEATURED CHARITY OF THE MONTH: PROJECT VETERANS PRIDE –

THE JAMES WALTON HOME By Beth Grady with a sense of duty and responsibility. Their stay at the James Walton Home

It’s hard to believe that those who will last up to 90 days. put themselves on the front lines and risk their lives for our country “Our residents really do enjoy their during their US military service are responsibilities,” says Dr. Christeen over 50 more likely to become home- Verchot, retired United States Air Force less and to experience homelessness LTC, President of Project Veteran’s longer than non-veterans. Yet of the 23 Pride, and Executive Director of the million military veterans in the United James Walton Home. “Their time of States, 529,000 to 840,000 are home- military service was led by structure and less at some time during the year. accountability, and they’re able regain In Arizona, there are approximately that here, which will prepare them for 1,036 homeless and jobless veterans. success after their stay at The James These somber statistics show the harsh Walton Home.” realities that those in the military face upon discharge due lack of family and And the program WORKS. Since the support networks, shortage of afford- first resident arrived on Veteran’s Day in able housing, PTSD, and other barri- 2013, over 650 now-formerly-homeless ers. veterans have graduated the program. 91 have continued to live off the street. One local Valley non-profit seeks to 79 are employed, while others have change all of this. Project Veteran’s returned to living with their families and Pride (PVP) is 501( c )3 organization restoring those relationships. founded by military veterans in 2011 with the mission to end veteran home- Dr. Verchot and her team stay in touch lessness by creating a well-balanced with their former residents, ensuring environment that will restore the pride that they’ll always have a network to and dignity of those who served our turn to. On June 21, they will reunite country so that they can return as self- with ten James Walton Home graduates sufficient and productive members of at the Dressing Vets for Success, the society. Through the James Walton organization’s largest fundraising event Home (JWH), PVP provides home- of the year. Locally-owned Ceiphers less veterans with a comprehensive Clothing hosts and produces the event, 30/60/90 program that gives them a which showcases graduates of the James “hand up” to do just that. Walton Home modeling “Job Ready” Ceiphers Clothing looks. The event will Opened in 2013, The James Walton also feature live entertainment, a raffle Home is a transitional home that can and live auction, and more. All proceeds house up to twenty homeless veterans will benefit PVP. Tickets are currently per day in a safe, home-like environ- on sale, and sponsorship and raffle doment where they complete the in- nation opportunities are also available. novative PVP program. Residents are referred to JWH through the VA From the fashion fundraiser to bus after a thorough vetting process. New passes to toilet paper to monetary donaresidents are greeted with a warm tions, there are many ways you can handshake or hug, then given a day’s help PVP carry out their mission and rest to decompress. After this, they directly make a difference in a homeless will use their time at the JWH to get veteran’s life. For more information and needed medical treatment through ways to help Project Veteran’s Pride, the VA, obtain job training, and seek visit www.pvpjwh.org. For more inforpermanent employment and housing. mation about Dressing Vets for Success Residents are also given household and to purchase tickets, www.ceiphersresponsibilities which empowers them clothing.com/philantropy.