How Tracy Armstrong Helps Families Navigate FAFSA with Divorced Parents

If you’re divorced and trying to figure out how to fill out the FAFSA correctly, you’re not alone, and you’re in the right place. As a Certified College Funding Specialist (CCFS®) and founder of The College Planning Mastery Program, I’ve worked with hundreds of families who feel overwhelmed by the complexities of college financial aid, especially when divorce is in the picture. The truth is, filing the FAFSA with divorced parents comes with its own set of rules, challenges, and opportunities, and I’m here to help you navigate them with clarity, strategy, and confidence.

Why FAFSA Gets Complicated After Divorce

When families go through divorce, financial planning becomes more layered. It’s no different when it comes to college funding. The FAFSA with divorced parents doesn’t just ask “What does your household earn?” It digs deeper. You have to determine the custodial parent, report income from the correct parent, and sometimes include a step-parent's financials, even when that parent isn’t directly paying for college.

For many middle-income families, those who make too much to qualify for major need-based aid but not enough to cover college out-of-pocket, these complexities can feel paralyzing. That’s where I come in. I’ve designed my process to take the guesswork out of FAFSA filing and create financial aid strategies tailored specifically to your unique situation.

What Is the FAFSA Looking For When Parents Are Divorced?

The Free Application for Federal Student Aid (FAFSA) uses something called the Student Aid Index (SAI) to determine eligibility for aid. For divorced families, who you report as the custodial parent can drastically shift your child’s SAI, and ultimately, how much aid your family receives.

Here’s the short version of how it works:

• The FAFSA only considers the custodial parent’s income and assets.
  
  

• The custodial parent is not determined by legal custody, it’s based on who the student lived with most over the past 12 months.
  
  

• If the custodial parent is remarried, the step-parent’s income must be reported too.
  
  

• The non-custodial parent’s income is generally not included, but there are exceptions, especially for private schools that use the CSS Profile.
  
  

These subtle distinctions can dramatically affect your aid package, which is why my College Planning Mastery Program puts so much focus on structuring family financial information correctly and legally.

Strategic FAFSA Planning for Divorced Parents

Every family is different, and so is every divorce situation. That’s why I take a personalized approach to each client I work with.

When you enroll in The College Planning Mastery Program, one of the first steps we take together is reviewing your custody, financial history, and living arrangements. Based on that, I guide you through which parent should file the FAFSA, how to legally position income and assets, and what financial decisions may help you qualify for more aid.

For example, in some cases, it makes financial sense for the student to live with the lower-earning parent for more than 50% of the year, legally shifting the custodial status for FAFSA purposes. But that’s not always the best solution, especially if the step-parent’s income would then count.

This is the type of nuance most families miss on their own. My goal is to remove the confusion and replace it with clarity and strategy that fits your life.

Avoiding Common Mistakes with FAFSA and Divorce

Many families I work with are surprised by how easy it is to make a small mistake that leads to losing thousands in potential aid. Here are a few of the most common issues I help you avoid:

• Incorrectly naming the custodial parent based on legal documents instead of living arrangements.
  
  

• Omitting a step-parent’s income, which can lead to aid recalculations and delays.
  
  

• Double-reporting support or contributions from the non-custodial parent.
  
  

• Filing late and missing institutional deadlines for aid or merit scholarships.
  
  

• Assuming private colleges follow FAFSA rules, when many actually use the CSS Profile and include both biological parents’ financial data.
  
  

Each of these mistakes can be avoided with the right information and preparation. That’s why I walk each family through these steps in a way that’s clear, stress-free, and tailored to your real-world situation.

How I Help You Reduce College Costs

My work doesn’t stop at the FAFSA. In fact, the FAFSA is just one piece of the puzzle.

My full-service approach addresses all four cornerstones of college planning:

1. Choosing the Right School: Some schools offer generous aid to divorced families, while others rely heavily on parent contributions.
   
   

2. Positioning for Acceptance: I help students build strong, targeted applications that improve their chances of admission and merit aid.
   
   

3. Lowering the Cost: Through FAFSA planning, merit scholarship targeting, and tax-aware strategies, I help you pay less.
   
   

4. Paying Without Debt: I create a customized funding roadmap so you can cover costs without sacrificing retirement, assets, or financial security.
   
   

When I meet with families, we build a strategic college funding plan together. This includes:

• Reviewing income and asset positioning for financial aid.
  
  

• Deciding who should file the FAFSA and when.
  
  

• Navigating merit vs. need-based aid opportunities.
  
  

• Structuring financial support between both parents to optimize aid.
  
  

• Exploring tax strategies that may reduce the reported income on the FAFSA.
  
  

• Timing asset withdrawals and financial gifts to avoid impacting aid eligibility.
  
  

Every decision we make is legal, strategic, and completely tailored to your family's structure.

My Personal Philosophy: Serving the “Middle-Income” Families

I focus my work on families who earn too much to qualify for most federal or state grants, but not enough to write a check for $80,000 a year in tuition. These are the families I call the “squeezed middle.” Divorce often adds another layer of challenge, but it doesn’t have to mean your child’s dream college is out of reach.

I don’t sell financial products. I don’t push loans. I offer honest, professional, and experienced planning that’s built around your goals. And as someone who’s guided nearly 600 families and helped them save over $87,000 on average, I can say with confidence: you don’t have to figure this out on your own.

What to Expect from Working With Me

If you’re considering working with me, we’ll begin with a complimentary discovery call. This call allows me to understand your situation, how your family is structured, what your financial picture looks like, and what goals you have for your child’s education.

From there, if we’re a good fit, we’ll develop a strategy that may include:

• Determining which parent should file FAFSA
  
  

• Preparing documentation if a school requests clarification
  
  

• Projecting aid outcomes from different colleges based on your specific financial makeup
  
  

• Preparing for both FAFSA and CSS Profile, if applicable
  
  

• Aligning your aid strategy with your retirement, tax, and investment goals
  
  

This is a comprehensive process, and it’s why I only work with a select group of families each year, because I believe in doing this right, not rushing through it.

You Don’t Have to Navigate FAFSA Alone

Filing the FAFSA with divorced parents isn’t something you should tackle without expert advice. It’s not just about filling in boxes on a form, it’s about structuring your family’s financial story in the way that best serves your child’s future.

With The College Planning Mastery Program, I help you see the bigger picture. We don’t just submit forms. We create a clear, confident, and customized roadmap, one that helps your child get into a great school, and helps you afford it without risking your own financial future.

So if you’re ready to replace overwhelm with strategy and uncertainty with clarity, let’s talk. A quick call could change everything about how you approach the college journey ahead.

Ready to get started?
Schedule your complimentary consultation with me today. Let’s make a plan that works for your child and your peace of mind.