Payment into college savings plans can be complicated by divorce. From the court’s point of view, an instrument like a 529 College Savings Plan is a marital asset subject to distribution – even though the funds are destined for your child.
When developing a college savings plan as part of the divorce settlement or child support program, you may need to offer some flexibility of terms, for instance, a reduced dollar amount for support and some money diverted into a savings plan.
Questions may arise, such as whether your child will want to attend a less expensive public college or university, or is likely to need help paying for a more expensive private institution?
Is your child likely to be eligible for scholarships?
By talking through the possibilities now, you and your spouse can plan more effectively for the future.
At Friedman & Ranzenhofer, we can help. Call us at 585-484-7432 for a legal consultation.