If you’re currently divorced or separated (or soon will be), and your child will be applying to colleges, there are a few things of which you should be aware of: The financial aid forms should be completed by the parent with whom the student lives for the greater part of the year.
If the parent with whom the child resides is re-married, you must include the income and assets of the step-parent as if he or she was a biological parent. This may not sound fair, but this is the way the financial aid system works.
Private colleges and Universities can ask to see other income and asset information of the other divorced parent when awarding their own funds. However, this information will not affect federally-based funds.