Money and the division of marital property are some of the most complex issues in a divorce. Mississippi couples may find that they are unsure of how to divide the money they set aside to pay for their kids’ future college education. They may be at odds over who should pay for college and which parent should manage the college savings fund. This is a complex matter that can lead to contention and disputes, and a final divorce order should clearly address these savings.
Addressing a complicated issue
In many cases, marital property is equitably divided between the two spouses. However, it is prudent not to assume that this will be the case with savings specifically earmarked for college expenses. Some parents are able to reach a negotiated settlement regarding these assets, such as agreeing to place the funds in a 529 account.
With a 529 account, the person who invests the fund is considered the owner of the account. In a divorce settlement, it will be helpful to clearly establish which parent is in charge of the account, how the parents will make decisions regarding these funds and other details. This will ensure the funds are used appropriately and that they are invested prudently.
Protecting the kids’ interests
Even though many types of savings accounts are considered marital property, that does not mean that a college savings fund will be split in a divorce. Mississippi parents may decide it is best to keep the funds as they are, managing them in a way that is in the interests of their kids. When addressing college funds in a divorce, it may help to discuss the matter with an experienced family law attorney.