Alimony payments are made monthly by one person to their former spouse based on an order issued by the court. Alimony payments will not last forever, which many recipients tend not to realize. Often, these are considered “rehabilitative” payments. They help one of the spouses from a marriage get back on their feet following a divorce. The alimony can be used for anything, including your child’s education if you so choose.
One of the best ways to pay for your child’s education using alimony is by opening a 529 account. This is a savings account that is not taxable if the money isn’t withdrawn prior to the student reaching college. It’s never too late or too early to open a 529 account for your child.
If you have been sending your child to a private school, and want to continue doing so after the divorce, consider using some of your alimony payments to pay for their tuition. Private school is expensive, so make sure you have enough to handle the tuition.
You can also use your alimony to pay for your child’s field trips, extracurricular activities, transportation to and from school, before school or after school care, books, uniforms, sports equipment, registration fees, technology fees, to buy them a laptop or tablet and much more.
If you choose to use alimony payments to help pay for your child’s education, it’s a smart idea, to say the least. As you can see from the options outlined here, you can pay for private education now, save for college later and make sure all fees associated with their education are paid.