On behalf of Tasha K. Schaffner of Schaffner Family Law posted in divorce on Monday, August 29, 2016.
As Kentucky readers know, divorce is a complicated process that requires a person to consider and decide on many important financial matters. In the midst of this potentially overwhelming process, it is important to pursue the protection of certain savings accounts. College savings, set aside for future educational needs of the parties’ children, can be protected during divorce in order to ensure that these funds are distributed appropriately.
If a parent has put money into an account to pay for college education in the future, a financial agreement can ensure that the other spouse cannot use this money for any future children he or she may have. While there are various options in these situations, parents may find it easier to leave the money where it is, but take intentional steps to ensure that non-qualified withdrawals cannot be made. Specific options depend on the type of financial account in question.
When putting protections in place, a parent can specify who may make a qualified withdrawal, consider state tax benefits, request duplicate statements and outline successor ownership. In some cases, an account can be divided or money can be placed in a trust. These savings are an important part of a marital estate and should be appropriately and thoughtfully addressed.
When it comes to a child’s future, a parent cannot be too careful. Working with an experienced Kentucky lawyer is an excellent way to ensure that all rights and interests are protected during a divorce. A legal ally can also ensure that the end of a marriage does not have to disrupt or derail a child’s future education plans.