POMPTON PLAINS LITTLE FALLS RINGWOOD CLIFTON PASSAIC COUNTY NJ DIVORCE COLLEGE EXPENSES MEDIATION

ccaesq@att.net (Charles C. Abut) — Thu, 29 Sep 2011 14:09:06 GMT

When New Jersey divorced parents are ordered to pay for a child's college expenses, they may be liable for not only for tuition, housing, books and computer costs, but also for transportation (including automobile, gasoline, parking and travel expenses), furniture (such as lamps, shelves, or dorm set-up and small appliances), clothing, luggage, linens and bedding, haircuts, telephone, supplies (like paper, pens, markers or calculators), sundries (such as cleaning supplies, laundry detergent), toiletries (soap, shampoo and other personal hygiene necessaries), insurance (automobile, health and personal property), costs of college events and organizations, entertainment (including school breaks and vacations), and spending money. This list is not exhaustive and likely would be expanded if a child lived in an off-campus apartment. Kelly v. Kelly, New Jersey App. Div., September 28, 2011

FANWOOD MURRAY HILL CRANFORD CLARK UNION COUNTY NJ DIVORCE COLLEGE EXPENSES MEDIATION

ccaesq@att.net (Charles C. Abut) — Wed, 28 Sep 2011 17:19:50 GMT

In ordering a divorced couple to pay for a child's college expenses, a New Jersey divorce judge may include costs such as additional instruction, tutoring, transportation and application fees. Yang v. Xue, New Jersey App. Div., September 22, 2011

In ordering a divorced couple to pay for a child's college expenses, a New Jersey divorce judge may include costs such as additional instruction, tutoring, transportation and application fees. Yang v. Xue, New Jersey App. Div., September 22, 2011

MILLBURN SHORT HILLS CALDWELL LIVINGSTON ESSEX COUNTY NJ DIVORCE COLLEGE EXPENSES MEDIATION LAWYER

ccaesq@att.net (Charles C. Abut) — Mon, 12 Sep 2011 11:57:21 GMT

Because the parties agreed to have Pennsylvania law govern their divorce agreement, there was no further obligation for college expenses, once their child reached age 18. This would not have been the result had New Jersey divorce law controlled. Pilling...

SPRINGFIELD CRANFORD KENILWORTH BERKELEY HEIGHTS UNION COUNTY NJ DIVORCE COLLEGE EXPENSES MEDIATOR LAWYER

ccaesq@att.net (Charles C. Abut) — Tue, 16 Aug 2011 12:46:12 GMT

Under New Jersey family law principles, college students need not pass every class taken, in order to continue to receive financial support from their divorced parents. Alexander v. Alexander, New Jersey App. Div., August 17, 2011

Under New Jersey family law principles, college students need not pass every class taken, in order to continue to receive financial support from their divorced parents. Alexander v. Alexander, New Jersey App. Div., August 17, 2011

LIVINGSTON CEDAR GROVE WEST ORANGE ROSELAND ESSEX COUNTY NJ DIVORCE COLLEGE EXPENSES ATTORNEY

ccaesq@att.net (Charles C. Abut) — Thu, 04 Aug 2011 17:22:46 GMT

Although the unauthenticated copies of the college transcripts were hearsay, they were nevertheless admissible under the "business records" exception. Alexander v. Alexander, New Jersey App. Div., August 10, 2011

Although the unauthenticated copies of the college transcripts were hearsay, they were nevertheless admissible under the "business records" exception. Alexander v. Alexander, New Jersey App. Div., August 10, 2011

RIDGEWOOD RAMSEY MAHWAH HACKENSACK NJ BERGEN COUNTY DIVORCE COLLEGE EXPENSES MEDIATION LAWYER ARBITRATOR

ccaesq@att.net (Charles C. Abut) — Tue, 26 Jul 2011 17:45:40 GMT

The parties' New Jersey divorce agreement required them and their child to apply for all available scholarships, loans, grants and other college financial aid. That provision is sustained on appeal. Engelke n/k/a Ryan v. Engelke, New Jersey App. Div., July...

The parties' New Jersey divorce agreement required them and their child to apply for all available scholarships, loans, grants and other college financial aid. That provision is sustained on appeal. Engelke n/k/a Ryan v. Engelke, New Jersey App. Div., July 14, 2011

WEST ORANGE CALDWELL LIVINGSTON ROSELAND ESSEX COUNTY NEW JERSEY DIVORCE MEDIATOR ARBITRATOR ATTORNEY

ccaesq@att.net (Charles C. Abut) — Tue, 28 Jun 2011 16:11:11 GMT

When analyzing the post-divorce financial circumstances of the parties, New Jersey divorce judges may permit redaction of the incomes of new spouses. Miccinilli, f/k/a Collins v. Collins, New Jersey App. Div., June 23, 2011

When analyzing the post-divorce financial circumstances of the parties, New Jersey divorce judges may permit redaction of the incomes of new spouses. Miccinilli, f/k/a Collins v. Collins, New Jersey App. Div., June 23, 2011

HOBOKEN JERSEY CITY SECAUCUS KEARNY HUDSON COUNTY NEW JERSEY DIVORCE COLLEGE EXPENSES MEDIATION

ccaesq@att.net (Charles C. Abut) — Tue, 28 Jun 2011 13:21:02 GMT

These New Jersey divorcing parents "...never entered into an agreement in which they expressly defined the number of semester hours they expected their child to attend for purposes of continued child support." Tremarki v. Pearce, New Jersey App. Div., June...

These New Jersey divorcing parents "...never entered into an agreement in which they expressly defined the number of semester hours they expected their child to attend for purposes of continued child support." Tremarki v. Pearce, New Jersey App. Div., June 22, 2011

HOBOKEN JERSEY CITY BAYONNE SECAUCUS HUDSON COUNTY NJ DIVORCE LAWYER

ccaesq@att.net (Charles C. Abut) — Wed, 08 Jun 2011 13:37:45 GMT

Both the student and the custodial parent have the obligation to inform the non-custodial parent with ongoing proof of college enrollment, course credits and grades, as a pre-condition of receiving child support and college expense payments. Van Brunt v. Van...

529 Plan or General Gifting Trust - Which is the Right Vehicle for Your Gifts?

Mon, 06 Jun 2011 13:27:50 GMT

Gifting is an integral part of estate planning and the incredible rise of education costs has made gifting to fund educational expenses an important consideration for many families.

One common technique implementing this planning is the creation of a 529 Plan for a benefit of a child or grandchild. After-tax dollars are contributed to these accounts which then grow federal income tax free for the benefit of the beneficiary of the account. The funds must be used for college tuition and related expenses. If the beneficiary does not use all the funds, the beneficiary can be changed to another child. To the extent funds are used for non-educational purposes, they are subject to income tax and a 10% penalty on the earnings of the account. The penalty can be avoided if the beneficiary dies, becomes disabled or receives a scholarship.

529 Plans are limited in that they only can provide for higher education expenses. An alternative to a 529 Plan is the creation of an irrevocable gifting trust to be the recipient of gifts for your beneficiaries. The gifting trust can permit the trustee to make distributions to the beneficiary (i.e. a child or grandchild) not only for college, but for other educational needs, health, maintenance, support or any other legitimate reasons, such as a down payment on a house or to start a business. The trust could extend out for a term of years (i.e., until the beneficiary attains age 35), or can even be for the lifetime of the beneficiary. While the trust is irrevocable so that it is not included in the donor’s estate, it can be drafted in a very flexible manner to permit distributions over a longer period of time. In this way, the donor (through the trustee) maintains control over the distribution of the assets

The major disadvantage to the gifting trust when compared to the 529 Plan is that the funds in the trust do not grow income tax free. Each year, to the extent income is not distributed, the trust will be required to pay income tax on its earnings.

Lastly, it is also important to note that a donor can pay for a child or grandchild’s educational expenses directly as a tax-free gift, which is in addition to (and not limited by) the $13,000 per donee per year gift tax annual exclusion.

When considering gifts to minors and other beneficiaries for educational purposes, it is important to consider 529 Plans and their tax benefits and compare this to the advantages of a gifting trust and its flexibility to make a wider range of distributions to make an informed decision as to which approach is more appropriate.

NEW JERSEY DIVORCE MEDIATOR ATTORNEY BERGEN COUNTY HACKENSACK ENGLEWOOD TEANECK LEONIA

ccaesq@att.net (Charles C. Abut) — Tue, 22 Mar 2011 16:41:03 GMT

A divorced New Jersey parent can be ordered to continue paying for college expenses for her/his child, even though that same parent is relieved of monthly child support payments. Timinsky v. Timinsky, New Jersey App. Div., March 18, 2011

A divorced New Jersey parent can be ordered to continue paying for college expenses for her/his child, even though that same parent is relieved of monthly child support payments. Timinsky v. Timinsky, New Jersey App. Div., March 18, 2011

HOBOKEN JERSEY CITY BAYONNE SECAUCUS HUDSON COUNTY DIVORCE EDUCATION EXPENSES MEDIATION ATTORNEY

ccaesq@att.net (Charles C. Abut) — Fri, 21 Jan 2011 18:35:31 GMT

Are divorced New Jersey parents obligated to pay for the graduate school education of their 25-year old college-graduate child? O'Connell v. Mataloni, New Jersey App. Div., January 20, 2011

Are divorced New Jersey parents obligated to pay for the graduate school education of their 25-year old college-graduate child? O'Connell v. Mataloni, New Jersey App. Div., January 20, 2011

FORT LEE DEMAREST ENGLEWOOD TEANECK BERGEN COUNTY NJ DIVORCE MEDIATION LAWYER

ccaesq@att.net (Charles C. Abut) — Thu, 13 Jan 2011 19:52:20 GMT

In the context of college expense payment for the parties' 19 year-old daughter, one parent sought to change jurisdiction from New Jersey to Pennsylvania [where parents are generally not liable for such claims]. The New Jersey divorce judge correctly denied...

HOBOKEN JERSEY CITY SECAUCUS KEARNY HUDSON COUNTY NEW JERSEY DIVORCE EDUCATIONAL EXPENSES MEDIATOR

ccaesq@att.net (Charles C. Abut) — Fri, 03 Dec 2010 18:47:51 GMT

In their self-prepared New Jersey divorce agreement, the mother and father established an "educational fund" for their 9 year-old daughter. But was this fund reserved only for college expenses or could it be used for secondary school? Yang v. Xue,...

HOBOKEN JERSEY CITY SECAUCUS KEARNY NJ DIVORCE EMANCIPATION MEDIATOR & ATTORNEY

ccaesq@att.net (Charles C. Abut) — Tue, 14 Sep 2010 11:39:05 GMT

Should these divorced New Jersey parents be compelled to pay for their 22-year old college-graduate daughter's law school education? Schambach v. Schambach, New Jersey App. Div., September 9, 2010

Should these divorced New Jersey parents be compelled to pay for their 22-year old college-graduate daughter's law school education? Schambach v. Schambach, New Jersey App. Div., September 9, 2010

PEQUANNOCK WANAQUE POMPTON PLAINS WAYNE PASSAIC COUNTY NEW JERSEY DIVORCE MEDIATION LAWYER

ccaesq@att.net (Charles C. Abut) — Tue, 10 Aug 2010 12:20:06 GMT

The New Jersey divorce judge properly emancipated the child and denied the mother's claim against the father for college expense reimbursement. When the child lied about attending and passing his courses, the mother "should have known the child was not attending classes, studying or otherwise fulfilling the degree requirements." Mather v. Babcock, New Jersey App. Div., August 2, 2010

MOUNTAIN LAKES STIRLING HANOVER MENDHAM MORRIS COUNTY NEW JERSEY DIVORCE LAWYER MEDIATOR

ccaesq@att.net (Charles C. Abut) — Thu, 24 Jun 2010 18:15:27 GMT

The father failed in his attempt to emancipate his 22-year old daughter and thereby terminate his payment of child support, as well as college expenses. Stickle v. Stickle, New Jersey App. Div., June 11, 2010

The father failed in his attempt to emancipate his 22-year old daughter and thereby terminate his payment of child support, as well as college expenses. Stickle v. Stickle, New Jersey App. Div., June 11, 2010

A DECISION TO NOT REQUIRE CHILD SUPPORT IS NOT BINDING ON FUTURE COURT TO HEAR MATTER - CHILD SUPPORT CANNOT BE WAIVED

Mon, 24 May 2010 01:55:57 GMT

On May 21, 2010, the Appellate Division issued a reported (precedential) opinion in Colca v. Anson involving different aspects of child support and college support. This case reinforces several principles regarding child support and payment of college expenses that we already knew (which makes it somewhat surprising that it was reported) but nevertheless is a good reminder of certain basic principles.

The first of these principles is that child support belongs to the child and thus cannot be waived by a parent or for that matter, my a court. This comes up in two contexts in this case. First, in a 2005 Order, for whatever reason, the trial court denied the father's request for child support for the parties' daughter who was in college. In another motion in 2008, the father sought child support again. Thinking that the matter had previously been decided by the court and that there were no changes of circumstances, the mother did not even file a Case Information Statement.

The trial court disagreed with the mother's position that the prior Order was forever binding and required a showing of changed of circumstances, pointing out that the duty to support a child continues until emancipation.

In addition, the Appellate Division affirmed the trial court's decision that the child's inheritance could not be considered with regard to support. While perhaps correct as to child support, there are not enough facts given in this case. Specifically, the Child Support Guidelines suggest an adjustment to child support may be required if a child has an extraordinarily high income. Also, in the famous NJ case on college expenses, Newburgh v. Arrigo, which has we have blogged on many times before, a child's assets are a factor to be considered. Since the college was at issue in this case, one wonders why the inheritance was not considered here.

When calculating the mother's income, because she did not file a CIS because she did not believe she had to, the trial court used the NJ Department of Labor guidelines, in accordance with the Child Support Guidelines to impute income to her. This was affirmed by the Appellate Division. This seems somewhat unfair under the unusual history of this case. If the Appellate Division deemed this case significant enough to report on the issue that a prior order denying child support cannot preclude a future application, even without a showing of a change of circumstance, it would seem that perhaps what should have occurred, before simply picking a number from "statistics" would have been to give the mother a chance to file her CIS before fixing support. In fact, it is not unusual in modification motion for the responding party not to file a CIS because under the famous NJ case on modification, Lepis v. Lepis, there is no right of discovery until after a showing of change of circumstances is made. Given that law, it seems unfair for the mother not to be given an opportunity to disclose her actual income here.

The mother then argued ta ht the father's delay in seeking payment for the mother's share of the parties' son's college expenses amounted to a waiver. The Appellate Division held that even though he failed to
comply with the mechanism for review and reimbursement set forth in a prior Order, he remained entitled to receive reimbursement. The Court noted that "A corollary to the principle that child support belongs to the child is the principle that the right to receive child support may not be waived by a custodial parent." The Appellate Division further went on to state:

Matrimonial litigants are often frustrated with litigating claims due to the time, expense, and uncertainty of the result. Nevertheless, because plaintiff's obligation is in the nature of support for an unemancipated child, she is obligated to provide these necessary payments, even in the face of defendant's failure to abide strictly by the procedures provided in the November order. (Emphasis added).

The bolded portion identifies a major problem in the family court, that is, that Orders are not always enforced. If an obligation is clear and courts routinely enforced orders as written, why would a litigant be frustrated by litigating their claim or scared about the uncertainty of the result? I have often said that the hardest thing to explain to a client is why a court order was not enforced. The next most difficult question, not necessarily from a legal stand point, but from one of logic is when a client asks, "if he/she doesn't have to comply with an order, why should I?" Of course, you can never counsel a client to ignore a court order but you can certainly understand where their question comes from. Moreover, many divorce agreements provide an entitlement to counsel fees if you have to file an enforcement motion and the Court rules also provide for same yet court's do not often reimburse much of the fees incurred, if any are ordered, thus a litigant is rarely made whole.

That all said, this case is definitely an interesting reminder of may basic child support principles and the realities of family court matters.

PARSIPPANY MENDHAM MORRIS COUNTY NEW JERSEY CHILD EMANCIPATION MEDIATOR LAWYER

ccaesq@att.net (Charles C. Abut) — Tue, 13 Apr 2010 16:04:22 GMT

The New Jersey divorce judge declared the two younger children emancipated because the mother failed to provide proof of their full-time attendance at college with passing grades. This decision is now affirmed on appeal. Kershaw nka Dodsworth v. Kershaw, April...

COLLEGE EXPENSES MORRISTOWN DIVORCE MORRIS COUNTY NEW JERSEY MEDIATION

ccaesq@att.net (Charles C. Abut) — Wed, 10 Mar 2010 15:49:29 GMT

The New Jersey divorce judge ordered enforcement of the New Jersey divorce agreement calling for payment of college expenses and denied the father's motion to terminate child support. Because the trial judge used only pay stubs to determine income, the matter is remanded for consideration of the gross income of the parties. Miccinilli v. Collins, New Jersey App. Div., March 5, 2010

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