Important Considerations for Couples Divorcing with Teens

 Posted on February 08, 2016 in Child Custody

There is never really a good time to divorce. However, it may be especially rough for a couple that decides to divorce as their children become teenagers and young adults.

Parents will need to make important decisions regarding their teens and their divorce. If the children are closer to college age or even the planning stages, there are key issues that a couple will want to consider as well. 

Who Gets the College Savings Account?

A couple may have jointly started a 529 savings account for their child in order to save money for their child's college education. Like any other joint asset under Illinois law, the account is owned by both parents and it will be awarded to one parent, or the account will be split between the couple. Before making the decision about how to deal with the the account, parents should remember that they will no longer have a say in how the account is used once the divorce is finalized. It is also important to remember that a 529 account can be counted as household income when the child applies for financial aid.

Where Will the Child Live?

Child custody is often a major issue in divorce, but when a child is an adult, or nearly an adult, and he or she plans to live at home or attend college close to home, decisions about primary residency are important. This is because the child will use the income of the patent where he or she resides for financial aid. Divorcing parents will want to carefully consider how their household income and the divorce will impact their child's ability to obtain enough financial aid.

Who Claims the Child on Income Taxes?

As long as a child is in school full-time, the parent with whom the child lives will be able to claim the child on his or her tax return and receive a deduction. Parents may also claim their child as a student, and many of these tax credits are tied to the parents’ income.

Let an Attorney Help

Making decisions during a divorce is always difficult. However, it is imperative that you strive to make the best decisions possible for your college-aged child to help secure his or her future. If you and your spouse cannot agree on how to resolve issue like college savings plans or tax credits/deductions, please speak with the DuPage County divorce attorneys at Davi Law Group, LLC. We can help you advocate for your child and provide the best setup for his or her future. Contact us today to schedule an appointment and to learn how you can work with one of our experienced and caring Illinois lawyers.

Sources:

http://money.usnews.com/529s/illinois

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=8300000