<p>Question just came up that I can't answer. Friend is legally separated as of May 2010. Has a college kid, but has not filed FAFSA. She and H cannot come to agreement at this time as to how to pay 2010-11 college tuition. Can she file FAFSA now for this upcoming school year as a separated custodial mom? How would the assets be reported since the FAFSA is a snapshot picture of assets as of the date of filing? The income would come from the 2009 return, I know and would have to reflect that of both parents, I am assuming.</p>
<p>She can file FAFSA now, but whether she would use her info or her H’s depends on who the kids has lived with most during the last 12 months - since the separation is so recent, it may or may not apply, and then the support test would prevail. From the FAFSA instructions:</p>
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<p>Basically, the recently separated parent must determine the portion of income/assets attributable to them when filing FAFSA. So he/she would not include all of the income reported on the 2009 tax form (unless they filed separately or the other spouse had no income). It’s probably easiest just to use some tax software and compile a separate return (but not file it)!</p>
<p>Assuming her son lives with her and she meets the FAFSA requirements of “Parent”:</p>
<p>Can she file FAFSA now for this upcoming school year as a separated custodial mom?
Yes</p>
<p>How would the assets be reported since the FAFSA is a snapshot picture of assets as of the date of filing?
She would report her share of the joint assets - normally 1/2.</p>
<p>The income would come from the 2009 return, I know and would have to reflect that of both parents, I am assuming.
Nope. The income comes from the 2009 return and only HER portion. Her wages and her portion of any interest, dividends etc</p>
<p>What I did was report my income, 1/2 of joint assets, 1/2 of other joint income (interest, dividends) and 1/2 of income tax liability. This worked for me. However, if her income was significantly less than her spouses she would probably benefit from doing her own tax return as single as sk8rmom suggests.</p>
<p>She also needs to remember to report any child support, spousal support she receives.</p>
<p>Interesting. If the student had filed the FAFSA in January before the separation was filed, then it would have to have the joint financials. But if the FAFSA has not been filed and is filed this month after the separation papers have been filed, the financials used would be 1/2 the amount?</p>
<p>Sort of. The parents only need to be “Separated”. Official papers don’t need to have been filed. Some states don’t even have a “Legal Separation”.
Otherwise correct. The status is as of the date of filing. You can’t go back and refile.</p>
<p>For families who are expecting a separation/divorce - it can be wise to wait until after the separation to file. Timing is everything.</p>
<p>It sure is. Hopefully in this case FAFSA is not already filed as it could make a big difference.</p>
<p>Weird fact: If the parent gets married in between the date of filing & completing a verification worksheet, the step’s info has to be provided & counted! </p>
<p>Yes, your friend would do what JustaMom says. If selected for verification, proof of separation may be required (such as bills for both parents showing separate addresses - that sort of thing). Since the separation is recent, the student would use the parent with whom he plans to spend the most time (since he is probably past the age of “custody”).</p>