Divorced Children Receive Less Financial Help From Their Parents

October 22, 2011

A recent study conducted by Rice University reveals that children of divorced parents typically receive less college financial aid from their parents as compared with children of intact marriages.

The study surveyed 2,400 undergraduate students and was published in SAGE Publications' June 2011 issue of its "Journal of Family Issues."

The study examined whether divorced/separated and remarried parents contribute less in absolute dollars, as a proportion of their income, and as a proportion of their children's financial need, toward their children's college expenses than married parents.

The answer in the study is yes. Although it found remarried parents are equal to married parents with respect to income, remarried parents behave more like divorced parents when it comes to contributing to their children's college costs, even though divorced parents' incomes are much smaller.

Divorced Children Pay More Than Twice As Much Of Their College Cost

Overall, the study found the amount of college expense the children must cover was:
- 23 percent of expense for children with married parents
- 47 percent of expense for children with remarried parents
- 53 percent of expense for children with divorced parents.

Divorced or separated parents contributed significantly less toward their children's college costs than married parents. Compared with married parents, divorced parents contributed only about a third as many dollars toward college costs ($1,500 vs. $4,700 per year).

The study notes marital status is a significant determinant of the amount of money parents contribute toward their children's college expenses, even after taking account of other important factors.

Divorcing With College Bound Children?

The findings are troubling for college bound students with divorced, separated or remarried parents. In the current financial environment where all government spending is being ruthlessly examined, financial aid for students is unlikely to see an increase, and may be cut to make up for deficits and help balance budgets.

Students also face ever-increasing college costs. If you are considering divorce, and your children wish to attend college, you may want to discuss with your divorce attorney how you should treat college funding for your children.

The case law in New Jersey which established the precedent for college contribution is Newburgh v. Arrigo, 88 N.J. 529, 443 A.2d 1031, a Supreme Court case. A careful review of the factors and criteria referenced in this case is important to what, if any contribution, divorced parents may be obligated to contribute to their child's college education.

Article provided by Goldstein & Bachman
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