North Carolina, if the boy lives in the same state as his father, has some great schools. Greg should start to discuss this with his ex-wife now. There are numerous books and Web sites that walk parents through the cost calculations. For parents with incomes too high to qualify for college-related tax credits, it's worth checking out Section 529 of the 1997 Taxpayer Relief Act. This provision allows states to act as trustees of prepaid education funds.
Dollars contributed by the parent are typically tax deferred.
Here's where both wives must be considerate of him. Greg's first wife must realize that tuition is paid in a lump sum, but Greg's salary is not. Kim must not count the days until 2005. She should consider the year 2009 as the ex-child support date. As any parent with two kids of very different ages knows, it's easier to pay for college if you start early.