With so many issues to deal with when negotiating a settlement in a divorce, many people may inadvertently over look planning for college for the couple's children. For New York couples whose children are still relatively young when the couple gets a divorce, the topic of college may be the furthest thing from the parties' minds. However, taking the time to do a little advance preparation during the divorce process can at least establish a framework.
The divorce settlement can at least loosely outline how the couple is going to plan for each child's college. If the couple has already started a college fund such as a 529 plan, that fund can be frozen to prevent either party from making any unauthorized withdrawals. Then each party can agree how much to contribute to the plan each year and how to structure the plan.