Wellllllll, another discovery. I went over the bank statements several months ago, and noticed that there was a $42,000 deposit(!) made in April of 2007, when I was at Ft. Bragg, a month away from Iraq.
Apparently, STBX had not disclosed that this money, which she claims was set aside for the kids by her father's wife for "educational purposes", when we went to court last March 5th.
Stand by..............
OMG, yowza! Well, clearly if she doesn't willingly start using it to cover educational expenses, it looks like a call to the L will be in order.
Unfortunately, if she doesn't decide to use that money right now to cover applications, without legal intervention there isn't anything that you can do about it immediately. In the long term, I wonder if the money can be put into a trust that you administer since XW is mishandling it.
Anyway, right now, you are pretty much where you were before with respect to how you handle your contribution to DD's application fees. XW will either contribute or not. You need to set your own boundaries. Don't let XW's antics undermine your DD's application process. Any legal action will probably happen long after applications are due. And, don't worry, there will be PLENTY of educational expenses to use up the $42000 (plus interest).
Hang in there. Take many deep breaths. Remember, this latest stuff is separate from the immediate issue with DD. Hopefully, though, XW will choose to do the right thing now that her educational money stash has been revealed. After all, she has some interest in avoid more legal fees.