04 Nov What happens with college payments if we get a divorce?

Q. I am considering a divorce. We each have a 401(k) worth about the same, our income is about the same and we own our home together. The mortgage is the only debt. Our children are 10 and 14. Can I get alimony and child support even if our assets and income are pretty much the same? Is there a financial advantage to waiting until the kids go to college, or does that make it worse in terms of who pays for their educations?
— Unsure

A. We’re sorry to hear you’re in this place, but we’re glad you’re starting to plan.

There are multiple factors that affect alimony in a divorce.

These include special considerations for health issues, educational level and more, said Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown.

She said when incomes are similar, it is likely that there will not be an alimony award.

“As for the child support, it is largely dependent upon the gross income of the parties, the alimony payment if any, and the number of parenting time with each party,” she said. “New Jersey uses the `New Jersey Child Support Guidelines’ calculator, which helps determine support to cover the basic expenses for the children such as food, shelter and transportation.”

Additional expenses for the children, such as medical expenses, day care, educational costs, sports teams, tutors and others will be paid proportionately by the parties based on the pro-rata income for each,” D’Agostini said.

It also depends on the custody for the children whether it is joint, sole, or split disproportionately, she said.

“As for the waiting, I guess that depends on the level of disharmony in the family, and whether either party’s financial picture will be materially changing,” she said, noting that it’s more economical to support one home versus two, especially in New Jersey, where home prices and property taxes as well as rent are currently very high.

“I would recommend doing some financial planning to create scenarios to see what is possible in your situation,”D’Agostini said. “College is a large expense that needs to be considered as well and may weigh in on the decision.”

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This story was originally published in November 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.