Many parents are surprised to learn that in Pennsylvania, child support generally ends when a child turns 18 and graduates from high school. Unlike some states, Pennsylvania courts cannot require divorced parents to pay for their child’s college education absent an agreement between the parties. As a result, it is critical to address college expenses during the divorce process, particularly when a 529 college savings plan exists.
A 529 plan can be an excellent tool for funding higher education, but your divorce agreement should clearly outline how the account will be managed. To preserve the tax advantages of the plan, the agreement should specify that 529 funds may only be used for qualified educational expenses for the children. It should also address who controls the account, how distributions are authorized, and whether the funds may be used for graduate or professional education.
Just as important, the agreement should anticipate what happens if money remains in the account after the children complete their education. Depending on the family’s goals, the parties may agree that unused funds will be rolled into a Roth IRA for the child, subject to applicable law, or divided between the parents. Addressing these issues in advance can help avoid future disputes and ensure that the funds are used as intended.
Every family and every case is different. If you’re facing questions about college expenses, 529 plans, or other financial issues in divorce, the MacElree Harvey, Ltd. Family Law team can help you evaluate your options and protect your interests. Contact Pilar Diaz at (610) 840-0276 or PDiaz@macelree.com to schedule a consultation.
Leave a Reply