Strategically using a 529

Strategically using a 529


I knew a guy in college a while back who got married for financial aid purposes. Then when in his graduate program he had to get divorced so he could get married for real to his fiance.

There has to be a certain level of trust there though where in some states there could be legal repercussions if a spouse wanted to hinge you with debt, etc. I would have to trust a for fun and profit spouse much more than I would a roommate.


Plus there’d be the impact of a divorce on your credit history in the short term. And the need for a careful prenup prior to marriage to shield both parties’ assets from the impact of what the other party does. When you include the need to trust a college student to not go crazy financially during college, it’s a lot of barriers to entry for sure.

Tempting to consider nonetheless considering the boatloads of money an emancipated resource-less student would save you over 4 years.


Why would divorce have impact on your credit history?


Sorry about that. I mixed up my thinking between credit score and insurance premiums. Marriage is considered a positive thing for insurers and vice versa divorce is not. Hence on average, divorce will increase insurance premiums.

But by itself, you’re correct that it should not affect credit score. Especially in the case where both “spouses” would be in it for college tuition savings only and not about to mess up each other’s credit record by doing spiteful things.