Seiling, 1990

“Children of Divorce: Financial Counseling Issues for Custodial Parents” (Financial Counseling
and Planning, Volume 1, 1990)

By: SHARON SEILING AND GOLDEN JACKSON

CONTACT: SHARON SEILING (E-MAIL: seiling.1@osu.edu)

POSTAL: 1787 Neil Ave., Columbus, OH 43210

PHONE: (614) 292-4224 FAX: (614) 292-7536

The purpose of this paper is to discuss the financial planning implications of child support awards
made at time of divorce. A case study approach is used to describe a typical divorce award, to
compare a typical settlement with costs of raising children, and to project an alternative settlement
scenario given the difference in award and costs. Factors affecting awards made to custodial
parents and the need of the custodial parent for support are presented. Data from court records
of divorce settlements in four Ohio counties are used to develop typical award patterns, and cost
estimates developed by Edwards are used to project need. These projections show that current
guidelines for child support result in awards that do not adequately meet costs past the third year.

KEY WORDS: divorce, child support, financial planning