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Tag Archives: 529 savings account

DuPage County divorce attorneysCollege tuition prices currently range between almost $10,000 and nearly $36,000 per year, depending on whether a student attends private or public college, and an in-state university or one that is outside their state of residence. Those figures, which have been increasing at an alarming rate over the last decade, are expected to rise even further over the next several years, which is why so many parents have college savings accounts for their children. 

Unfortunately, if the parents eventually divorce, the child’s college savings account could be split between the parties. What is more, parents may find it more difficult to save for their child’s college tuition once the divorce has been finalized. Thankfully, there are preventative measures that can be taken during the divorce process to protect a child’s future education. Learn more in the following sections, including how a seasoned divorce attorney can help to improve the final outcome in your Illinois divorce case. 

Splitting a College Savings Account in Divorce

In a divorce, marital assets are valued and then distributed equitably between the parties. A child’s college savings account, though meant for the child’s future, is typically included in the marital estate. Parents can agree that the account will remain intact, under one parent, or they can split it amongst one another. Keep in mind that there are pros and cons to each choice (personal spending of the tuition money, having fewer liquid assets if you take the account in the divorce, etc). As such, it is recommended that you discuss your options and their potential consequences with a seasoned divorce lawyer before making any final decisions. 

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Wheaton divorce lawyersA college degree is almost essential in today’s job market, which is why so many parents set up an educational savings account for their children. Unfortunately, that account may be subject to division if the parents end their marriage. Learn how you can protect your child’s savings account during your Illinois divorce, and discover how a seasoned divorce lawyer may be able to help improve the overall outcome of your case. 

How Divorce Can Endanger Your Child’s College Savings

Going from one household to two can have a significant impact on your family’s overall financial trajectory - and that includes your child’s college savings account. That is because the household, which used to share expenses, now has two sets of bills. Add in the possibility of child support and alimony, and there is even less money to go around. As such, it may be difficult for parents to continue contributing to their child’s college savings account. Another issue is that some savings accounts are considered marital assets, so they may be split like other assets. Yet, even if the account is not split (such as with a 529 plan), there is a risk that one parent may wrongfully spend the money that has been saved. 

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DuPage County divorce attorneys, couples divorcing with teensThere is never really a good time to divorce. However, it may be especially rough for a couple that decides to divorce as their children become teenagers and young adults.

Parents will need to make important decisions regarding their teens and their divorce. If the children are closer to college age or even the planning stages, there are key issues that a couple will want to consider as well. 

Who Gets the College Savings Account?

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Abraham Lincoln A lawyer’s time and advice are his stock and trade. -Abraham Lincoln
Davi Law Group, LLC handles family law, estate planning and real estate matters for clients in Chicago and throughout the western suburbs including DuPage County, Will County, Kane County, Kendall County and Cook County and the cities of Aurora, Bloomingdale, Bolingbrook, Carol Stream, Darien, Downers Grove, Elmhurst, Geneva, Glen Ellyn, Hinsdale, Joliet, Kendall County, Lisle, Lombard, Naperville, Oak Park, Oak Brook, Oswego, Park Ridge, Roselle, St. Charles, Villa Park, Warrenville, Wheaton, Winfield, Woodridge and Yorkville, Illinois.
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