In theory, the funds you deposit into a 529 plan during a divorce in Brooklyn shouldn’t be subject to distribution, but there’s always the chance that your spouse will claim you’ve deposited marital funds.
This can make the process a headache, but if you’re careful, it probably won’t be difficult to defeat the action.
The larger risk you run is that the 529 could ultimately be subject to court order, which would direct how and when it can be used, and that your then ex-spouse may have some oversight power on the account.
In a previous New York divorce case, a judge directed that an existing 529 plan owned by one parent must be exhausted before either parent would be required to contribute to the child’s college expenses.
This negates many of the advantages of a 529 for the contributor, and may mean you pay more of your child’s college education than your spouse does, whatever your settlement may say.
Be cautious when it comes to 529 accounts during a divorce.
Call the attorneys at Zelenitz, Shapiro & D’Agostino today at 718-725-9601 for a free consultation about your divorce and savings plans.