<p>Hello,</p>
<p>I'm a regular poster here on CC - but used this login for a few posts this past summer when I separated and was selling/buying homes. All worked out really well. Love my new smaller home and everyone is doing fine.</p>
<p>I have been separated for nearly 6 months- but not LEGALLY separated. All our financial affairs are in order, the house sold a while ago and the closing is coming up week of thanksgiving. Amicable separation and we are now getting around to working with a mediator to draw up the plans. We are doing a separation first as this saves us a ton in health insurance. Once youngest is out of school- we will divorce and then buy two health plans each from our respective employer. Neither one of us is rushing to marry another person - so this is fine for now financially.</p>
<p>I have some timing questions regarding when we should file for our LEGAL separation and divorce in terms of how it impacts next year's FAFSA and CSS Profile. Child # 1 graduates and is heading to grad school (hopefully-- applications in progress). Child # 2 will be a junior next year. Both are likely to pursue doctoral studies. Child # 1 is planning to work in industry a few years and is planning to earn a masters and that means full pay next year. H and I plan to assist with tuition and housing. There is also an untouched 529 which will be liquidated for the masters.</p>
<p>So here's my timing questions- I want to make sure I do this correctly to maximize any financial aid and lower the EFC where legally feasible.</p>
<p>1) Will FAFSA allow us to list our status as "separated" only if this occurs as of December 31, 2011 or can we list it as long as we are legally separated by the actual DATE the FAFSA is filed? It would be a stretch for an attorney to file everything and get it all done before year end. </p>
<p>2) Sibling # 2's private college require a CSS Profile and also a separate school form for the non-custodial parent. One of us will be that parent - we contributed equally to his education and he spent more time living with me out of the few weeks he is actually not in school or at an internship.
Although we worked out how this is all going to be paid, we realize that the FAFSA EFC is going to shrink shrink and more shrink since both of us earn less than $100,000. So although the private school will (and is entitled to do so) do whatever it wants in terms of the financial aid offered- there may be some federal and state aid here given the EFC. So basically- do I have to rush the legal separation by year end-- or can I get this done in January and still file the FAFSA after we are legally separated and FAFSA will calculate the EFC based on only one parent's income if we are legally separated? </p>
<p>As the older sib graduates younger sib's EFC will double and therefore the pending separation and divorce will help out tremendously in the EFC reduction relative to had we still been married.</p>
<p>3) Any other issues to raise with the school ? All new to me - thanks for any advice on what might be important to note in the non-custodial form required by the school.
H and I earn about the same - so no real advantage and no games to play. Assets were all liquidated past year so we could both have our own home. So other than retirement funds, there are no bank accounts in H or my name to declare. </p>
<p>As for federal income tax, we were planning a joint return and our plan was to separate January 1 to keep it all simple. However, if we need to divorce or separate by Dec 31, things are going to be so much more messy in a short time frame.</p>
<p>Thanks Much-- </p>
<p>PS I assume older sib's graduate student status is totally irrelevant to any aid younger sib might receive or how EFC is calculated as well?</p>