One goal that most divorcing parents agree on, even if they disagree on a multitude of issues, is that their divorce shouldn’t interfere with their children’s future. That often includes their ability to get the best college education possible.
Many parents start putting away money for a child’s college expenses when they’re very young. Whether it’s in a joint bank or investment account or a tax-advantaged 529 college savings plan, it will likely be considered community property under California law, which is typically subject to equal division in divorce.
If you need to divide these assets that are meant to eventually be used for your child but are currently in both your name and your spouse’s, how can you ensure that your spouse won’t keep the money for themselves or maybe even use it for a future child or stepchild’s education if they remarry? Further, how can you make sure they’ll continue to contribute to your child’s college savings?
Putting some agreements in place to protect these assets
You can seek to include some agreements in your divorce decree that specify things like what or how much money is to be spent only on your child’s education (or professional training like art, music or culinary school if they decide not to go the college route).
An agreement can be particularly crucial if you have a 529 college savings plan. Because only one parent can be listed as the owner of that account, the non-owning parent has no legal control over what happens to the funds. During a divorce or even a separation, however, a couple can put an agreement in place requiring the non-owning parent to provide written permission to make any withdrawals, requiring that both parents have access to information about the account and more.
Each couple – and each family – is unique. Divorcing parents can choose from a variety of options to help ensure that their shared goal of a good college or vocational program for their child isn’t sacrificed as a result of a divorce. With experienced legal guidance, you can determine how best to protect your child’s future as well as your own as your personal divorce process unfolds.