Child Education Support: What Happens to RESPs and Student Loan Debt in a Divorce?
Planning for a child’s future is a priority for most parents, but when a marriage or partnership ends, the logistics of funding post-secondary education become significantly more complex. In Alberta, the transition from high school to university involves more than just tuition—it involves a shift in legal obligations under the Family Law Act and the Divorce Act.
At Jones Divorce & Family Law, our Calgary-based team specializes in navigating these transitional years. This guide explains how RESPs, student loans, and ongoing child education support intersect, and how we help you build a fair strategy for your family’s next chapter.
Child Support May Not End At 18
Many parents assume child support automatically ends when a child turns 18. In Alberta, that’s not always the case. Under both the Divorce Act and the Family Law Act, a child may still be entitled to support if they remain financially dependent on their parents—for example, while pursuing post-secondary education.
In practice, this means child support may continue when a young adult is:
- Enrolled in a full-time post-secondary program such as university, college, or trade school
- Unable to become financially independent due to illness or disability
In many cases, support continues until the child completes their first post-secondary program or reaches approximately age 22, although every situation depends on the specific facts and court orders involved.
What is Child Education Support?
Beyond regular monthly payments, courts may also require parents to contribute to child education support, which covers certain post-secondary costs. These expenses can include:
- Tuition and compulsory fees
- Textbooks and supplies
- Housing or residence costs
- Transportation
- Basic living expenses while studying
Under the Federal Child Support Guidelines, parents may be required to share these expenses based on their respective incomes. If the child lives with one parent while attending school, regular monthly support may also continue alongside these contributions.
Dividing Student Loan Debt in Divorce
In Alberta, the Family Property Act governs the division of most assets and debts in divorce. This includes student loan debt. How this type of debt is treated depends largely on when the loan was incurred and how the funds were used.
When determining responsibility for student loans, courts and family lawyers may consider the purpose of the loan. In some cases, student loans are used not only for tuition but also for household living expenses, which may benefit the entire family. If that is the case, the debt may be treated differently from a loan used solely for one spouse’s personal education. The courts can also consider whether the student loan was necessary for the incurring spouse to become employable and therefore able to support the family.
Another key consideration is each spouse’s financial circumstances and earning potential. Courts generally aim to reach a fair division that allows both spouses to maintain financial independence after divorce.
Student Loan Debt Incurred Before Marriage
Student loan debt incurred before marriage is typically considered separate property under Alberta law. In most cases, the spouse who incurred the debt remains responsible for it after divorce.
For example, if you borrowed money for education before getting married, that obligation will usually remain yours alone once the marriage ends.
However, practical arrangements may still vary depending on the circumstances. If both spouses entered the marriage with comparable student debt and similar incomes, they may simply each continue paying their own loans.
Student Loan Debt Incurred During Marriage
Student loans obtained during the marriage may be treated differently. In some cases, courts may consider them part of the marital debt, particularly if the loan benefited the household or if both spouses were involved in the borrowing.
For example, shared responsibility may arise if:
- The loan was used to support the family’s living expenses
- One spouse helped repay the loan during the marriage
- The other spouse co-signed the loan
- The loan was required to earn income to support the family
Co-signers are relatively common with private student loans. If one spouse co-signed, they may remain legally responsible for repayment unless the lender releases them from the loan.
In some cases, couples may address this issue by:
- Applying for a co-signer release through the lender
- Refinancing the loan under one spouse’s name
- Allocating responsibility for repayment in the separation agreement
These solutions can help ensure that the spouse who did not benefit from the education is not unfairly burdened by the debt.
Managing RESPs in Divorce
Registered Education Savings Plans (RESPs) are often an important part of planning for a child’s future education. In Alberta, courts generally treat RESPs as funds held in trust for the child rather than as marital property to be divided between spouses.
Because these funds are intended to support a child’s post-secondary education, the focus during divorce is typically on how the RESP will be managed and used moving forward.
How RESPs Are Used After Divorce
In many cases, separating parents address RESP management in their separation agreement. The agreement may outline:
- Who will manage or administer the RESP
- How the funds will be used for tuition, housing, and living expenses
- How any additional child education support costs will be shared if RESP funds are insufficient
RESPs are often used first to cover post-secondary education expenses, with parents contributing additional funds if necessary.
What Happens if the RESP is Withdrawn?
If one parent withdraws RESP funds for non-educational purposes, there can be significant tax penalties and a loss of government grants (CESG). Our lawyers provide the jurisdictional expertise to protect these accounts, ensuring that the children’s funding remains intact.
If Children Don’t Attend Post-Secondary
If the RESP is ultimately not used for education expenses, several outcomes are possible.
The plan may be closed, and the original contributions are typically returned to the contributors or beneficiaries. However, the investment income earned on the contributions is taxable in the hands of the contributor.
Government grants and income generated from those grants must usually be returned to the government if they are not used for educational purposes.
It is also important to note that RESPs can remain open for up to 35 years, providing flexibility if a child delays their post-secondary education. Parents may also add additional beneficiaries if they have more children in the future.
Get Help with Separation and Divorce from Experienced Child Support Lawyers in Calgary
Navigating divorce and separation can be challenging, especially when financial matters such as student loan debt, RESPs, and child education support are involved.
An experienced family lawyer can help you understand your rights, negotiate fair arrangements, and ensure that both property division and education planning are handled appropriately under Alberta law.
At Jones Divorce & Family Law, our experienced child support lawyers in Calgary provide compassionate guidance and strong legal representation during this difficult time. If you need assistance with property division, education expenses, or child support matters, contact our team to schedule an initial consultation.
The content provided in the blog posts of Jones Divorce & Family Law is general information and should not be considered legal advice. Please contact a lawyer for legal advice tailored to your specific situation. All articles are current as of their original publication date.
