Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

Closed Thread
 
Thread Tools
  #1  
Old 05-09-2013, 10:33 PM
divorce_poor divorce_poor is offline
Junior Member
 
Join Date: Sep 2012
Posts: 9
divorce_poor is on a distinguished road
Default Will our RESPs end my CS ?

University is still years away for my kids, but I am curious how it should play out.
Can anyone explain?

Quite literally from the month my kids were born their mother and I have been maxing out their RESP contributions. As of today they have a very nice nest egg that will continue to grow and be invested into. I crunched the numbers today and assuming only modest rate of growth they will each have $70K put aside when they enter University. I can tell you that I maybe got $700 bucks from my parents to go to University. I worked , rang up student debt , got scholarships and teaching assistant positions to get my way through.

I know that if we had nt put money aside that I'd be responsible for my share of their university expenses, but given that we have and I think the money should be enough. Can I count on child support ending once they enter University and are over 18? If they live at their Mom's home will I still have to pay CS to her?

I dont mean to come off hard nosed or heartless about my kids, I love my kids! I think that their mother and I will have already paid for their education and this divorce has set me back years financially. Since the divorce I have never been financially comfortable and dont want to live like this forever. My last hope for a comfortable retirement will be if I can take the money that I am paying in child support once they are 18 and in University to pay off my mortage before I am eligible to retire which will be about when they are finished their undergrad degree.

Will I be able to stop paying CS when they turn 18 and in University?

Just looking for some light at the end of the tunnel
  #2  
Old 05-09-2013, 10:53 PM
Tayken's Avatar
Tayken Tayken is offline
Senior Member
 
Join Date: May 2011
Posts: 7,172
Tayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant futureTayken has a brilliant future
Default

Quote:
Originally Posted by divorce_poor View Post
Will I be able to stop paying CS when they turn 18 and in University?
No but, it will change when they are in school. The RESP will be used first and then the court will evaluate what, if any child support, should be paid.

This article really spells it all out and probably can answer all your questions.

Child support for post-secondary degrees
How many degrees is one child entitled to?


by Lorna Yates

September 24 2010

Child support for post-secondary degrees

Good Luck!
Tayken
  #3  
Old 05-09-2013, 11:23 PM
frustratedwithex frustratedwithex is offline
Senior Member
 
Join Date: Jul 2010
Posts: 504
frustratedwithex is an unknown quantity at this point
Default

Quote:
Originally Posted by divorce_poor View Post
Will I be able to stop paying CS when they turn 18 and in University?

Just looking for some light at the end of the tunnel
Maybe.

Quote:
Originally Posted by Tayken View Post
No but, it will change when they are in school. The RESP will be used first and then the court will evaluate what, if any child support, should be paid.
Good Luck!
Tayken
I believe the RESP is for tuition, books and room and board.

In my case, the kids live at home while attending university and the RESP fully funds the tuition and books. Neither myself or the other parent contribut further to the kids education.

Kids have part time jobs while in university and full time during the summer. They use this income for themselves.

My ex. considered the kids self sufficient because of this income. The arbitrator said unless they can live on their own, without subsidies from the parents, they are still considered children of the marriage and child support was ordered. She explained that the parent still needs to provide food and shelter.

Now that one child is finished university, my ex. projected ahead and figured out how much of the remaining RESP money would be needed for the other children to complete their degrees. There will be a surplus in the account.

He proposed that we withdraw an amount each semester, per child, and call it room and board. It would go to the parent that the child is living with and be included in the child's income tax return. That way the RESP is depleted.

If there is any money remaining in your RESP when the kids graduate and you withdraw it, it will be taxable to you.
Closed Thread

Tags
child support, resp, section 7


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Father denied any and all info. on kid's education @ college Stepmom2-:) Divorce & Family Law 2 05-09-2011 04:16 PM
College Tuition and RESP's Inthemiddle Financial Issues 0 07-31-2010 06:24 PM
Tax Credits and Deductions/Section 7 Expenses New2thisforum Financial Issues 22 04-13-2010 11:55 AM


All times are GMT -4. The time now is 02:47 AM.