Most parents tuck away money for their kids’ higher education—but what happens to that cash during and after a divorce? How are future contributions weighed, and is there anything you can do to prevent your ex from dipping into the funds without your knowledge? Only your Chapel Hill divorce lawyer can provide you with legal advice that’s tailored to your case, but you can do your best to communicate with your spouse about your kids’ college savings without forcing it through the court system.
Giving it the Old College Try
Any Chapel Hill divorce lawyer can tell you that you’re more likely to come to a satisfactory agreement with your ex if you can work things out yourselves. Sometimes when a court intervenes, one or both spouses feel like they’ve given up too much ground and walk away dissatisfied.
First, let your attorney know about your kids’ accounts. If possible, talk to your spouse about how your divorce affects your kids’ college savings plans. Some college savings accounts can only have one owner or manager and one beneficiary, so you’ll need to discuss how the non-managing parent can still contribute and what will happen if the managing parent wants to access the funds.
Professing Your Intentions
If you’ve discussed (or tried to discuss) your kids’ college savings accounts with your spouse and don’t think you’re capable of reaching an agreement, tell your Chapel Hill divorce lawyer. He or she may suggest that you work with a mediator or that you ask the court to make a decision. Ask your attorney whether your kids’ existing accounts can be counted as an asset when the court distributes property so you’re armed with the information you need.
Your lawyer might advise you to start your own college savings accounts for your children after your divorce is final so that you have full control of contributions, withdrawals and other activity. He or she might also suggest that you talk to a financial adviser to make sure you’re headed in the right direction.
