Contribution to College Expenses by a Child
Illinois law recognizes that children have a right to an education, and this includes post-secondary education. This means that both parents may be required to contribute to their child’s college expenses, even if the child is over the age of 18 and no longer a minor. For more information on the parent’s obligation to contribute to college expenses, please see the article linked here. In addition to the parents’ obligation, in Illinois, the child may also be required to contribute to a portion of their own college expenses.
The amount a child is expected to contribute will depend on their financial resources, including any income they may have from employment, inheritance, investments, as well as any financial aid they may receive.
How Do Scholarships Impact Financial Obligations?
Scholarships can play a role in this determination because they can be considered a financial resource for the child. If a child is awarded a scholarship, it would reduce the overall cost and therefore would reduce all parties' contribution amount. If merit based, arguably, a scholarship could also be considered the child’s “contribution” to their own expenses.
How Do College Savings Accounts Affect My Required Contribution to Expenses?
Some parents have 529 college savings accounts for their children. According to Section 513 of the Illinois Marriage and Dissolution of Marriage Act, if a college savings plan was created prior to the dissolution of the marriage, that savings plan is to be considered by the court to be a resource of the child. However, any contributions made by a parent to such an account that are made after the divorce is finalized will be considered a contribution from that parent. 750 ILCS 5/513(h). This means that if one parent contributes to a college savings account after divorce, the funds in that account will be deducted from that parent’s required contribution to college expenses. For savings plans that were created prior to divorce, it is common in Marital Settlement Agreements that the existing savings plan will be designated to pay for college expenses first, before either parent is called to make a contribution.
The Law Office of Erin M. Wilson LLC is experienced in advising clients regarding college contribution issues and can guide you through the options you have available. Contact The Law Office of Erin M. Wilson LLC to schedule a consultation.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.