College Expenses & Divorce in New Jersey

When parents get divorced, one of the most common concerns is who will have to pay for their child’s (or children’s) college education. Of course, both parents want what’s best for their child, and often, that means obtaining a college degree from a reputable university. However, the question of who specifically will have to pay for a child’s college tuition is often a contested one. That being said, courts in New Jersey do not make this decision arbitrarily, and there are several factors they will consider, if the parents cannot reach an agreement on their own. Continue reading and reach out to an experienced Atlantic County divorce lawyer from the Law Office of Stephanie Albrecht-Pedrick, LLC to learn more about college expenses and divorce in New Jersey and how our legal team can work to protect your child’s best interests, every step of the way.

Does New Jersey Require Parents to Pay for College After Divorce?

Simply put, New Jersey does not have a blanket rule stating that every divorced parent must pay for college. That being said, a court can order one or both parents to contribute toward a child’s higher education when the facts of the case support doing so.

Unlike basic child support, which is often calculated through the New Jersey Child Support Guidelines, when determining who will pay for a child’s college expenses, the court will examine the entire situation before determining whether either parent should contribute, how much that parent can reasonably afford, and whether the child’s educational choice makes sense under the circumstances. Some of the issues a court may review are as follows:

• Each parent’s income, assets, debts, and overall ability to pay
• The child’s academic ability and commitment to attending college
• The total cost of the chosen school
• Whether more affordable educational options are available
• The amount of scholarships, grants, and other financial aid received
• Whether the parents discussed or saved for college during the marriage
• Whether the child included both parents in the college selection process

What Law Governs College Expenses in New Jersey Divorce Cases?

New Jersey college expense disputes are governed by a combination of statutory law and court decisions.

One of the most important statutes is N.J.S.A. 2A:34-23, which gives New Jersey family courts the authority to enter orders concerning child support, education, and other financial responsibilities arising from a divorce. The statute allows courts to consider several factors when determining support obligations, including the needs of the child, the parents’ financial circumstances, the child’s educational needs, and the standard of living the family enjoyed before the divorce.

New Jersey’s child support termination law, found at N.J.S.A. 2A:17-56.67 et seq., is also relevant. Generally, child support may terminate when a child reaches age 19, though support can continue in certain circumstances, including when the child is enrolled full-time in a post-secondary educational program and remains financially dependent on the parents.

However, the case that has had perhaps the greatest impact on college expense disputes is Newburgh v. Arrigo, 88 N.J. 529 (1982).

In Newburgh, the New Jersey Supreme Court determined that parents may, depending on the circumstances, have a duty to contribute toward a child’s college education. The Court did not create an automatic requirement that every parent pay college costs. Instead, it identified a series of factors that judges should consider when deciding whether a contribution is warranted.

These factors remain central to New Jersey college contribution cases today. Though later court decisions have expanded upon and clarified portions of the law, Newburgh v. Arrigo continues to serve as the foundation for determining parental responsibility for higher education expenses.

What Are the Newburgh Factors?

The Newburgh factors are designed to help courts determine whether a parent should contribute toward college and, if so, what amount would be reasonable. No single factor will decide the case on its own. Instead, the court will review all relevant facts and attempt to reach an outcome that is fair to the parents and the child.

Whether the Parent Would Have Contributed if the Family Had Remained Intact

One of the first issues the court may consider is whether the parent would likely have paid for college if the marriage had continued.

For example, the court may look at whether the family had discussed college, opened educational savings accounts, paid for private schooling, visited universities together, or otherwise demonstrated that higher education was always part of the plan. A parent who strongly encouraged college throughout the child’s life may have difficulty later claiming that no contribution was ever expected.

The Reasonableness of the Child’s Educational Expectations

The court may also consider whether the child has a reasonable expectation of receiving a college education based on the family’s financial resources and background.

Not every family can afford the same type of school, and not every parent has the financial ability to pay private tuition. Therefore, the court will examine what the family could realistically have provided, rather than simply focusing on the child’s preferred college.

The Amount of the Contribution Requested

The requested contribution must be reasonable.

A court may review the total tuition, fees, housing expenses, meal costs, and other charges before deciding whether either parent should be required to pay. The fact that a child was accepted into an expensive university does not, by itself, mean that the parents can be forced to cover the entire cost.

Each Parent’s Ability to Pay

The court will look at both parents’ financial situations. This can include the following:

• Income
• Employment history
• Assets
• Debts
• Monthly expenses
• Earning capacity
• Other support obligations
• Financial responsibilities for additional children

A parent with a high income and substantial assets may be expected to contribute more than a parent who is struggling financially. Still, income alone will not always tell the entire story, which is why complete and accurate financial documentation is extremely important.

The Type of School or Course of Study

The court may consider the type of college the child plans to attend, along with the proposed course of study.

For example, a judge may evaluate whether the child is attending a public or private institution, whether the school is located in New Jersey or another state, and whether the selected program is reasonably connected to the child’s educational and career goals.

The Financial Resources of Both Parents

In addition to income, courts can consider the parents’ broader financial resources.

This may include investment accounts, real estate, business interests, retirement assets, inheritances, and other sources of wealth. On the other hand, the court may also account for substantial debts, medical expenses, job instability, or other legitimate financial burdens.

The Child’s Commitment and Aptitude

A child seeking college contribution is generally expected to demonstrate the ability and willingness to pursue higher education seriously. Courts may consider the following:

• High school grades
• College grades
• Class attendance
• Academic progress
• Enrollment status
• Efforts to complete a degree
• Whether the child has repeatedly withdrawn or failed courses

A parent may have grounds to challenge continued contribution if the child is not attending classes, is making little academic progress, or has effectively abandoned the educational program.

The Child’s Financial Resources

The child may also be expected to contribute toward college when possible.

The court can consider savings, employment income, trust funds, custodial accounts, scholarships, grants, and other funds available to the student. College contribution is not always treated as an obligation that must be carried entirely by the parents.

The Availability of Financial Aid

Scholarships, grants, loans, and work-study opportunities can have a major impact on the final amount owed by each parent.

Generally, financial aid should be explored before the remaining expenses are divided. A child who fails to apply for available aid may face questions about whether every reasonable effort was made to reduce the cost of attendance.

The Relationship Between the Child and the Parent

New Jersey courts may examine the relationship between the child and the parent from whom contribution is being requested.

This does not mean that an ordinary disagreement will automatically eliminate a parent’s responsibility. However, the court may consider whether the child communicated with the parent, provided information about the college selection process, shared grades and financial aid documents, and gave the parent a meaningful opportunity to participate.

The Relationship Between the Education and the Child’s Goals

Finally, the court may evaluate whether the chosen education is reasonably connected to the child’s long-term goals.

A proposed degree or program does not need to guarantee employment, but the court may still consider whether the educational plan is legitimate, organized, and likely to benefit the child.

What College Expenses Can Be Included?

College expenses can include far more than tuition. Depending on the circumstances and the language of a settlement agreement or court order, parents may be required to contribute toward several education-related costs. These expenses may include the following:

• Tuition
• Registration fees
• Mandatory university fees
• Room and board
• On-campus housing
• Reasonable off-campus housing
• Meal plans
• Textbooks
• Digital course materials
• Laboratory fees
• Technology fees
• Required computers or laptops
• School supplies
• Transportation to and from campus
• Public transportation costs
• Parking permits
• Required health insurance
• Graduation fees
• Certain mandatory student activity fees
• Other necessary costs

Can Scholarships and Financial Aid Affect Each Parent’s Contribution?

Yes. Scholarships and financial aid can significantly reduce the amount either parent is ultimately required to pay.

Before dividing college costs, the court may look at all available sources of financial assistance, such as the following:

• Academic scholarships
• Athletic scholarships
• Need-based grants
• Federal grants
• New Jersey grants
• Institutional aid
• Work-study programs
• Student loans
• College savings accounts
• Trust funds
• The child’s employment income

Generally, scholarships and grants will be applied first because they reduce the total cost without requiring repayment. Once those funds are accounted for, the remaining balance may then be divided between the parents and, in some cases, the child.

Student loans can be more complicated. A court may determine that some borrowing is reasonable, though a child is not always required to take on substantial debt before either parent contributes. The specific facts, including the parents’ ability to pay and the total cost of attendance, will matter greatly.

Can Parents Agree in Their Divorce Settlement Who Will Pay for College? And if Not, What Happens?

Fortunately, parents can address college expenses directly in their marital settlement agreement.

In many cases, doing so is preferable because it allows the parents to establish clear rules before tuition bills begin arriving. Parents may agree on the following:

• The percentage of college expenses each parent will pay
• Whether the child must contribute
• Whether payments will be capped
• Whether the cap will be based on the cost of a New Jersey public university
• Whether private or out-of-state schools are covered
• Whether the child must maintain full-time enrollment
• Whether a minimum grade point average is required
• Whether the child must apply for scholarships and financial aid
• When tuition bills and financial documents must be exchanged
• Whether payments will be made directly to the school
• Whether graduate school expenses will be included

If the parents reach a valid agreement, New Jersey courts will generally enforce it, however, if there is no agreement, or if the parents cannot agree on how the provision should be interpreted, either parent may file an application with the court. Once they do, a judge will review all relevant evidence before entering an order.

Can College Expenses Be Modified After a Court Order?

Fortunately, the answer to this question is often “yes.”

College contribution orders can sometimes be modified when there has been a substantial change in circumstances. However, the parent requesting the modification will generally need to prove that the change is significant and that the existing order is no longer fair or workable. Some of the circumstances that may support a modification are as follows:

• A substantial increase or decrease in either parent’s income
• Job loss
• Disability
• Serious illness
• Unexpected medical expenses
• A major change in tuition or housing costs
• The receipt or loss of financial aid
• The child transferring schools
• The child withdrawing from college
• The child failing to maintain full-time enrollment
• The child failing to make reasonable academic progress
• The child becoming financially independent
• Other major changes affecting the family’s ability to pay

Importantly, parents should not simply stop making court-ordered payments because their financial circumstances have changed. Until an order is formally modified, the original obligation generally remains in effect.

Contact an Atlantic County, New Jersey Divorce Lawyer Today

If you’re getting ready for a divorce and are looking to ensure your child’s best interests are protected, you can have confidence in your decision to retain the services of a skilled family lawyer here at the Law Office of Stephanie Albrecht-Pedrick, LLC. We have extensive experience advocating for parents looking to ensure their children receive higher education, and we are here to put that experience to work for you. Contact us for an initial consultation today so we can discuss your circumstances.