The 2026–27 FAFSA is now open — earlier than usual — and families will notice a few tweaks on top of the major changes introduced by the FAFSA Simplification Act two years ago. These updates affect how divorced or separated parents determine which household completes the form, what financial information must be included, and how certain family assets are treated.
For the 2026–27 FAFSA, parents and students must use 2024 tax return information. The federal filing deadline is June 30, 2027, but state and college priority deadlines may fall earlier, so plan ahead.
FAFSA Basics for Divorced or Separated Parents
The following rules, introduced through the FAFSA Simplification Act, continue to apply this year. These determine who fills out the form, what income and assets are counted, and how family circumstances affect financial aid eligibility.
- Which parent files the FAFSA: The parent who provided the greater portion of the student’s financial support during the most recent 12 months is responsible for completing the form.
- If support is equal: When both parents contributed exactly the same amount, the parent with the higher income and assets must file.
- Including a stepparent: If the FAFSA parent is remarried on the day the form is submitted, the stepparent’s income and assets must also be included.
- IRS data transfer: Each required contributor (student, parent, or stepparent) must provide consent for the IRS to share federal tax data directly with FAFSA.
- Child support received: Report any child support received; it is counted as an asset rather than income under the new formula.
New FAFSA Updates for 2026–27
Several updates apply for this year’s FAFSA cycle. These changes are designed to simplify reporting and adjust how certain assets and income are treated.
Before you start the application, review the following new points:
- Certain assets are no longer reported: Families do not need to include the net worth of a small business with 100 or fewer full-time employees, a family farm where they live, or a family-owned commercial fishing business.
- Pell Grant calculations changed: Students are ineligible for Pell Grants if their Student Aid Index (SAI) equals or exceeds twice the maximum Pell Grant amount. In addition, the foreign earned income exclusion is now added back to adjusted gross income when determining Pell eligibility.
- Simpler contributor process: The online FAFSA now has an improved “contributor invitation” flow. Parents who are married and filed jointly enter less information, and parents without a Social Security number can create StudentAid.gov accounts through a new identity-matching process.
>>RELATED:
- 2026-27 FAFSA Guide
- Understanding the Student Aid Index (SAI)
- Why You Should Fill Out FAFSA Even if You Don’t Qualify for Financial Aid
How to Determine the FAFSA Parent
For divorced or separated parents, the main decision is which parent reports financial information on the FAFSA. The key factor is financial support — not custody or residence.
Here’s how to decide:
- Start by identifying which parent provided more financial support to the student in the most recent 12 months.
- If support was exactly equal, use the parent with the greater income and assets.
- If that parent is remarried, include the stepparent’s income and assets on the form.
Family Size on the FAFSA
The FAFSA asks for your current family size, which includes you, your spouse (if applicable), and your dependents. If your family size has changed since filing your 2024 tax return — through marriage, birth, or another event— you can update it when completing the FAFSA.
Tax Considerations for Divorced Parents
Remember that the FAFSA uses information from the 2024 tax year. Changing which parent claims the student as a dependent on a tax return does not determine which parent completes the FAFSA; the FAFSA always follows the financial support rule. If you’re unsure how tax filing choices affect your aid eligibility, consult a tax professional.It is crucial for divorced or separated parents to understand the potential tax implications of the FAFSA changes and how they may impact their financial situation and ability to receive financial aid. Consulting with a tax professional can provide guidance on navigating these changes effectively.
FAFSA To-Do List for Divorced or Separated Families
Before you start your 2026–27 FAFSA, take these steps to prevent delays or mistakes:
- Identify the FAFSA parent now by reviewing who provided the most support in the last 12 months.
- Collect 2024 tax information for every required contributor and make sure each person can give consent for IRS data sharing.
- Confirm which assets must be reported—and which new exclusions apply.
- Check your family size and update it if it changed since 2024.
- File early to maximize eligibility for state and institutional aid.
FAQ on FAFSA for Divorced/Separated Families
Does FAFSA require both parents’ information if we’re divorced?
No. Only the parent who provided more financial support submits the FAFSA, along with a stepparent’s information if that parent has remarried. If both parents provided the same amount, the parent with the higher income and assets files.
If a FAFSA parent dies, do I report a stepparent?
You do not report a deceased parent’s income. If the surviving parent is remarried, include the stepparent’s information. Students who have lost a parent and don’t receive financial support from the other may request a dependency override through their college.
What happens if someone lies about which parent files the FAFSA?
Providing false information on a federal form is a felony. Penalties can include fines up to $20,000, imprisonment for up to five years, or both. Schools can also revoke aid and report suspected fraud to the Department of Education.
How to Use Road2College Insights to Find Financial Aid
We offer a college search and comparison tool called Road2College Insights. Try it for free to see which colleges provide the most financial aid for your situation. We offer a free version to get started and a premium version to go deeper.
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