≡ Menu

Isn’t the 529 college savings plan technically my child’s property?

No, the 529 savings plan that you have been contributing to is the property of the spouse who opened it, or a joint account if you opened it together.

When couples with 529s divorce, the funds in the account must be included as part of the marital assets and their division approved by the court.

Some couples prefer to leave an existing account intact, while others are willing to take the tax hit that goes with closing it out and starting another, singly held account.

If you have any concerns that your former spouse might raid a 529 left in their control, you should insist on a cash out as part of the settlement.

The Brooklyn divorce attorneys at Zelenitz, Shapiro & D’Agostino know 529s and other tax-preferred savings plans and can help you maximize your settlement while minimizing the tax liabilities associated.

Call us today at 718-725-9601 for a free consultation.

Comments on this entry are closed.