Paying for College and Retirement in Divorce
Many parents make paying the expenses of their children’s college education a big priority in their divorce. These expenses include college tuition, room and board, meal plans, books, etc…Frequently these parents have become emotionally invested in ensuring that their kids don’t have to pay for college. Obviously, we’d all like to see our kids graduate from college without school loans.
Unfortunately, especially in today’s economic climate, many people cannot afford to fund their retirement and pay for their kids’ college expenses (if they are fortunate enough to have the resources to do either). That can be a very hard reality to accept.
One fact that I (and many experienced financial professionals) constantly remind clients is this: Kids can borrow money for college; parents cannot borrow money for retirement.
This means that parents going through a divorce should take a very hard look at whether paying for college will allow for a proper retirement fund.
After all, most kids would rather pay for their own education than their parents’ retirement.
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