Iowa courts have held the authority to order divorced parents to contribute to their children's college education expenses. This unique provision, outlined in the Iowa Code as the "postsecondary education subsidy," has been a significant factor in divorce proceedings throughout the state, particularly when it comes to property settlements and long-term financial planning.

However, a significant change is on the horizon. The Iowa Legislature passed Senate File 513, a bill that eliminates the court's power to mandate these payments. The bill is now on its way to Governor Reynolds, and if she signs it into law, it will mean a fundamental change in how college expenses are handled in divorce cases and create a more equitable standard across different family structures.

Understanding the Historical Context

Iowa was among a number of states that gave courts the authority to order divorced parents to pay for their children's college education. This typically included tuition, room and board, books, and other related expenses. The rationale behind this law was to ensure that children of divorce weren't disadvantaged in their educational opportunities compared to children from intact families.

Under this system, courts could order parents to pay up to one-third of the cost of a state college education. This potential obligation significantly influenced how divorcing couples approached property settlements and custody arrangements, as they needed to account for these future expenses.

What's changing? Specifics of Senate File 513

Senate File 513 makes a fundamental change to Iowa's divorce laws. The bill completely eliminates the court's option to order postsecondary education subsidies in divorce cases. Section 2 of the bill is explicit: "The court shall not order either of the parties to pay a postsecondary education subsidy under a temporary order or final judgment or decree."

This means that while parents can still voluntarily agree to contribute to their children's college expenses as part of their divorce settlement, the court itself will no longer have the authority to mandate such payments absent explicit agreement between the parties.

This change addresses a long-standing criticism that the previous law created an inequitable situation: only divorced parents faced court-ordered college expense obligations, while married parents and never-married parents had no such legal responsibility.

Impact on Pending and Future Divorces

According to the bill, these changes will apply to any support order, decree, or judgment entered or pending on or after July 1, 2025. Importantly, the new law will not affect existing orders that were entered before that date. This means that if your divorce decree already includes provisions for postsecondary education subsidies and was finalized before July 1, 2025, those obligations will remain in force.

A New Era in Iowa Divorce Law

The bill passed the Iowa legislature with significant support—according to legislative tracking information, it passed 43-4 in the Senate and 85-6 in the House. If the Governor signs, it means a significant shift in philosophy, treating all parents—married, divorced, or never married—equally when it comes to the legal obligation to fund a child's college education.

While some may see this as potentially disadvantageous to children of divorce, others will view it as correcting an inequity in how different family structures were treated under the law. Regardless of one's perspective on the policy itself, divorce attorneys and their clients will need to adapt to this new legal landscape.

For divorcing parents who value their children's higher education, proactive planning and explicit agreements will become more important than ever.