FAFSA for divorced parents: Who fills it out & do we disclose bank accounts?

For divorced parents, only ONE parent completes the FAFSA - the parent with whom the student lived the most during the past 12 months. If equal time, then it's the parent who provided more financial support.\n\nYour friend's situation is normal - if her child lives primarily with her, then only she reports her income on FAFSA, regardless of her ex-husband's surgeon salary. This is how the system works.\n\nAnd yes, you must report cash balances (checking/savings) as of the date you file the FAFSA. These count as assets in the SAI calculation. Student assets are weighted more heavily than parent assets, so keep that in mind when planning.\n\nDon't panic - the new FAFSA is more streamlined than previous versions!

Thank you! That makes more sense about the living situation determining which parent files. My daughter has lived with me about 70% of the time since the separation, so I guess I'm the one who needs to fill it out. \n\nDo you know if child support payments from her father count toward my income on the FAFSA? And does his income affect her aid at all?

my daughters in college now & the FAFSA is never as bad as u think!!! for divocred parents its just whoever the kid lives with most of the time. my ex never had to do anything for it and we've been divorced 10 years. and yea u gotta list bank accounts but they care more about income than savings from what i can tell

That's reassuring to hear it's not as bad as I'm building it up to be! Did your ex's income affect your daughter's aid amount at all? Or was it really just based on your finances?

The advice about using the custodial parent is mostly right, but be careful! Some private colleges also require the CSS Profile, which DOES collect non-custodial parent information. So if your daughter is applying to private schools, your ex might need to submit financial info for those schools even though he doesn't for the FAFSA.\n\nAnd yes, checking and savings are reported as assets on FAFSA. But there's an Asset Protection Allowance that shields some of your savings based on your age and other factors. Also, retirement accounts (401k, IRA) are NOT reported on FAFSA, so that's good news.

Wait that's super important - I didn't know private schools had a different form! Does anyone know which schools use that CSS thing vs just the FAFSA? My kid is looking at some private colleges but I thought it was all the same form!!!

When me and my ex were figuring this out, it was SO confusing. Our kid splits time exactly 50/50 between us according to our custody agreement, but I provide more financial support so I'm the one who fills out the FAFSA. But honestly, in my case, my ex actually makes less money than me so it would have been better for HIM to fill it out! The system is set up to get the maximum amount from whoever is legally required to complete it.\n\nAnd yes, bank accounts are reported but they don't impact your aid as much as income does.

That's really interesting - we actually have a similar situation where time is split pretty evenly. So if the other parent makes less, it could potentially mean more aid? That's important to consider...

Former financial aid counselor here. Let me clarify a few things:\n\n1. For FAFSA purposes, the parent who files is determined by physical custody (where the student lived more in the past 12 months). If exactly equal, then it's who provided more financial support. If still equal, the financial aid office decides which parent to use.\n\n2. Child support received IS counted as untaxed income on the FAFSA for the parent who receives it.\n\n3. Yes, you must report bank account balances as of the date you complete the FAFSA. However, if you're concerned about timing, know that cash assets affect the SAI calculation much less than income does.\n\n4. If you remarry, your new spouse's income and assets must be included, even if they don't support your child.\n\nDifferent schools have different requirements, so check if any of your daughter's schools require the CSS Profile in addition to FAFSA.

Thank you for this detailed information! One follow-up question - if I'm the one who fills out the FAFSA because my daughter lives with me most of the time, will colleges ever reach out to her father for his financial information? Or is his income completely irrelevant to the federal aid calculation?

I'm in almost the same situation and tried calling FSA multiple times to get clarification. I wasted HOURS on hold just to get disconnected each time! So frustrating!!! 😡 Finally I tried using Claimyr (claimyr.com) which got me through to an actual human at the Federal Student Aid office in about 15 minutes. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. The agent explained everything about the divorced parent situation to me and confirmed I was doing it right as the custodial parent. Saved me so much stress!

Thanks for the suggestion! I'll definitely check it out if I get stuck trying to reach someone. Being on hold for hours just to get disconnected is my nightmare scenario.

One more important thing: if your daughter lived with you 70% of the time, then YOU are the parent who should complete the FAFSA. Your ex-husband's income and assets won't be considered for federal aid purposes at all.\n\nHowever:\n1. Child support you receive IS counted as untaxed income on your FAFSA\n2. If you've remarried, your current spouse's income and assets must be included\n3. Some private colleges require the CSS Profile which WILL ask about the non-custodial parent (your ex)\n\nKeep in mind the FAFSA is for federal aid only. Individual colleges may have their own forms and processes for institutional aid that could ask for both parents' information.

Got it - this is so helpful! I haven't remarried, so I won't need to include anyone else's income. And I'll make sure to check if any of her potential schools require that CSS Profile. Thanks for the clear explanation about child support counting as untaxed income too.

Just to add some clarity on the bank account question - yes, you must report the balances of checking, savings, and investment accounts, but:\n\n1. Retirement accounts (401k, IRA, etc.) are NOT reported\n2. The equity in your primary residence is NOT reported\n3. Small businesses with fewer than 100 employees are NOT reported\n\nAlso, the FAFSA has an Asset Protection Allowance that shields some of your assets from consideration based on your age. And parent assets only affect the SAI calculation by a maximum of 5.64%, while student assets are assessed at 20%.\n\nSo if possible, it's better for college funds to be in the parent's name rather than the student's.

wait really? i didn't know that about student vs parent accounts! my daughter has about $5k in her own savings account that she earned from her summer job. should i move that money to my account before filling out fafsa next year??

Just be careful about any \

Please be careful with this advice. While the system isn't perfect, intentionally withholding required information on the FAFSA can be considered fraud. Your obligation to pay per divorce decree is different from the FAFSA's assessment of ability to pay. Always be truthful on the FAFSA - the penalties for misrepresentation can include fines, repayment of aid, and potentially criminal charges in extreme cases.

Thank you all SO much for these helpful responses! I feel much clearer now on who needs to file (just me as the custodial parent) and what needs to be reported. I'll definitely look into whether any of her potential schools require that CSS Profile too.\n\nOne last question - when is the earliest I can submit the FAFSA for the 2025-2026 school year? I've heard there can be advantages to submitting early.

The 2025-2026 FAFSA opens on October 1, 2024! You can submit it as early as that date using your 2023 tax information (since FAFSA uses "prior-prior year" tax data). There are definitely advantages to submitting early: 1. Some aid is awarded on a first-come, first-served basis 2. State aid deadlines can be as early as February or March 3. It gives you more time to resolve any issues that come up Pro tip: Even if you haven't finished all your college applications yet, you can still submit the FAFSA early. Just make sure to add any additional schools to your FAFSA later if needed (you can list up to 10 schools). You've got this! The fact that you're planning ahead and asking the right questions puts you way ahead of the game. 😊