<p>If it is more advantageous to claim one over the other as custodial parent, make your arrangements so that you have lived with that parent more than the other. In some states, it could make a decent difference. Unless one is PELL eligible or unless you are in the position to get a lot of aid from a school that does not consider non custodial financial, iit may not make much difference at all. </p>
<p>My friend makes a very good income and has significant assets. Her oldest is looking at colleges now. The dad makes very little money, lives with his parents and barely gets by and has no significant assets. By making sure the college bound son spends more than half his time with dad, he might be Pell eligible, be able to get some TAP (state money) and any Stafford loans would be Subsidized. Since the student is looking primarily at SUNY schools, they will look at FAFSA only and he might get some aid there too. For most schools that use PROFILE as well, his mother’s financials will come into play and at that income/asset level he won’t get much.</p>
<p>I think it would be how the house is set up. Is this a one family house or a two family house? If you are all living together in one house and your dad just pays “rent” I would call that living together. If this is a two family house and Dad is living totally separate - I would say living apart.</p>