How to Fill Out the FAFSA When Parents Are Divorced
Simplify your FAFSA application. Understand the unique requirements for students whose parents are divorced to secure college financial aid.
The Free Application for Federal Student Aid (FAFSA) serves as a gateway to various forms of financial assistance for college, encompassing federal grants, loans, work-study programs, and often state and institutional aid. This application evaluates a family’s financial strength to determine how much they can reasonably contribute toward educational costs. While the FAFSA process can be straightforward for many families, it introduces unique complexities when a student’s parents are divorced or separated. Understanding the guidelines in these situations helps accurately complete the form and maximize aid eligibility.
Determining the Parent for FAFSA
When parents are divorced or separated, the FAFSA requires financial information from one parent, referred to as the “custodial parent.” This designation is based on where the student lived for the majority of the 12 months preceding the FAFSA application date, not legal custody agreements. The parent with whom the student resided for more than 50% of that time is considered the custodial parent.
If the student lived with each parent for an equal amount of time during the 12-month period, the FAFSA specifies that the custodial parent is the one who provided more financial support to the student. This financial support can include money for housing, food, clothing, medical expenses, and other necessities. This rule ensures a clear determination of which parent’s financial data.
Only the financial information of the designated custodial parent, and any stepparent if remarried, is included on the FAFSA. The income and assets of the non-custodial parent are not reported on the application.
Gathering Required Financial Information
Completing the FAFSA requires collecting specific financial documents from the custodial parent and any stepparent. The primary document needed is the federal income tax return from the prior-prior tax year. For example, the 2025-2026 FAFSA, which opens on October 1, 2024, requires tax information from the 2023 tax year.
Additional documents include W-2 forms and records of any untaxed income. Examples of untaxed income often include child support received, untaxed portions of pensions, and veterans’ non-education benefits. Current balances of cash, savings, and checking accounts are also required, along with investment records for assets such as stocks, bonds, mutual funds, and real estate not used as the primary residence.
Child support received by the custodial parent for any of the children in the household must be reported as untaxed income on the FAFSA. Conversely, child support paid by the custodial parent to another household is not reported on the FAFSA. Alimony received by the custodial parent is taxable income and should be reflected on their federal income tax return. For agreements after December 31, 2018, alimony payments are not deductible by the payer and are not taxable income for the recipient. For agreements before 2019, alimony received is taxable income and alimony paid is deductible.
If the custodial parent has remarried, the income and asset information of the stepparent must also be included on the FAFSA. The Department of Education considers the stepparent’s income and assets as part of the household’s financial resources available to support the student. This inclusion is mandatory, regardless of any prenuptial agreements or financial arrangements.
Completing the FAFSA Application
After gathering financial documentation, complete the FAFSA application. Both the student and the custodial parent (and stepparent, if applicable) need to create a Federal Student Aid (FSA) ID. This unique username and password serve as a legal electronic signature and are used for accessing and signing the FAFSA. The FSA ID is also used to access other federal student aid websites and can be created directly on the Federal Student Aid website.
To begin, navigate to the official FAFSA website and select the appropriate aid year. During the application process, there will be a section addressing parent marital status, where “Divorced or Separated” should be selected. The system will then prompt for the demographic and financial information of the designated custodial parent and any stepparent.
The IRS Data Retrieval Tool (DRT) is a tool for inputting financial data. This tool allows eligible applicants to securely transfer their tax information directly from the IRS into the FAFSA. Using the DRT helps reduce errors and may streamline the verification process later. If the DRT cannot be used or if the tax data is unavailable, the financial information must be manually entered from the tax returns and other financial records.
Once all sections of the FAFSA are completed, review all entered information for accuracy. Any discrepancies or errors could lead to delays or incorrect aid eligibility determinations. After reviewing, both the student and the custodial parent (and stepparent, if applicable) must electronically sign the application using their FSA IDs. Upon successful submission, a confirmation email will be sent, and a Student Aid Report (SAR) will be generated, summarizing the FAFSA data and providing an estimated Expected Family Contribution (EFC).
Understanding Special Circumstances
The FAFSA process is designed to capture a family’s financial situation based on prior-prior year tax information, but certain events can significantly alter a family’s ability to pay for college. These situations are known as “special circumstances” and allow for a review of the student’s aid eligibility. Examples of special circumstances include a significant loss of income due to job loss, a substantial reduction in work hours, or a decrease in untaxed income such as child support.
Other qualifying special circumstances can involve high unreimbursed medical expenses, the death of a parent, or unusual dependent care costs. If the non-custodial parent provides substantial financial support not reflected in the custodial parent’s FAFSA information, this could also be considered a special circumstance. These events are often not captured by the standard FAFSA questions and may warrant an adjustment to the financial aid calculation.
To request a review for special circumstances, the student or family must contact the financial aid office at each college to which the student is applying. Each institution has its own process for evaluating these requests, which is often referred to as a “professional judgment.” Colleges may require specific documentation to support the claim, such as letters from former employers, medical bills, or legal documents related to changes in support.
The decision to adjust a student’s financial aid package based on special circumstances rests solely with the financial aid office of each individual college. This process is intended for unusual and verifiable changes in financial situations, not for general dissatisfaction with the aid offer or to avoid reporting required income. Providing thorough and accurate documentation is important for a successful review.