My ex-husband is suing for part of our kids’s 529 plans — 8 years after our divorce. Is he entitled to plunder those accounts?


I opened 529 instructional budget for each and every of our 4 youngsters in a while once they had been born. Just one particular person is also indexed because the account proprietor, so all the way through my marriage I owned, controlled and contributed per thirty days to each and every fund from a joint bank account. 

My better half knew concerning the budget, however they weren’t integrated in our marital agreement settlement after we divorced. The budget had been supposed to lend a hand offset the learning value of sending our kids to school. 

8 years after our divorce was once finalized, alternatively, my ex-husband has made up our minds to take me to courtroom for “his percentage” of the cash contributed to those accounts. The belongings weren’t hid all the way through the wedding.

One fund earned thrice the volume of our private contributions in pastime on my own. Would my ex be entitled to part of the particular contributions made all the way through the wedding or part of the whole account values, together with contributions and earned pastime? 

Ex-Spouse and Mom of 4 

“A pass judgement on would no longer glance favorably upon his coming again 8 years later in quest of a percentage of your budget.”

MarketWatch representation

Expensive Ex-Spouse and Mom,

Congratulations on putting in place tax-advantaged 529 accounts when your youngsters had been born, and staying the path. You probably did the suitable factor. I’m sorry your husband has made up our minds 8 years after your divorce that he merits 50% of those accounts.

You divorced your husband for a reason why — or, most probably, a number of causes. A pass judgement on would no longer glance favorably upon his coming again 8 years later in quest of a percentage of your budget. I’d be stunned if a legal professional didn’t inform you a similar factor.

Courts have steadily handled 529 accounts as the kid’s assets, despite the fact that they’re in a guardian’s title. The regulation company Goldsberry, Portz & Lutterbie reviewed a variety of circumstances in states together with Texas, Ohio and New York regarding the department of such accounts in a divorce.

In Ramsay v. Ramsay in Ohio, “the courtroom regarded as the accounts to be the valuables of the events’ youngsters no longer matter to department between the events all the way through the divorce. Courts in Indiana have additionally handled 529 accounts as break free the fogeys’ assets,” the regulation company stated.

In Zuchowski v. Zuchowski in New York, the events agreed to percentage faculty bills 50/50 and stay the 529 plan within the spouse’s title, the company added. But if she attempted years later to make use of that truth to scale back her percentage of the varsity bills, the courtroom stated the account’s objective was once to fund the kid’s training, no longer for my part get advantages both birthday party.

As those courtroom circumstances counsel, it’s sophisticated. On the time of your divorce, the pass judgement on can have made up our minds to separate the cash in those 529 accounts. Even if those accounts had been arrange for the good thing about your youngsters’s training, they had been nonetheless regarded as marital belongings. However no longer anymore.

Timing is vital

“Most often, all disputable problems should be resolved or else identify controls,” says Randall Kessler, a divorce legal professional in Atlanta. “In different phrases, if the accounts are managed by way of her, she stays in fee. In the event that they weren’t disputed all the way through the divorce, that’s on him and/or his felony recommend.”

“In a different way, circumstances could be matter to being reopened time and again and over,” Kessler provides. “This can be a elementary guideline of the regulation that each one contestable problems or claims should be resolved or they’re forfeited except in particular reserved — if events agree that later came upon belongings can be divided.”

Matheu Nunn, a divorce legal professional and spouse at Einhorn Barbarito in Denville, N.J., concurs that this must had been hashed out 8 years in the past. “Divorce agreements are contracts. And, like all contract, they’re presumptively enforceable — as written,” he says.

Then again, in just about each and every state, the distribution of belongings like a 529 plan in a divorce is guided by way of ideas of fairness and equity. A pass judgement on, as an example, would wish to know whether or not the omission of the 529 plans from the settlement was once unintentional or intentional.

“A pass judgement on would wish to know whether or not you made any further contributions after the grievance for divorce were filed,” Nunn provides. “If that is so, your ex-spouse would no longer be entitled to any post-complaint contributions made by way of you.”

Out of your telling, those accounts weren’t hidden all the way through the divorce court cases, your ex-husband was once acutely aware of them, they usually weren’t integrated or divided as a part of the department of marital belongings. As Kessler sees it, your ex-husband is most probably out of time and out of success.

I’m hoping and accept as true with your youngsters gets the training they deserve.

You’ll electronic mail The Moneyist with any monetary and moral questions at, and practice Quentin Fottrell on X, the platform previously referred to as Twitter.

Take a look at the Moneyist personal Fb workforce, the place we search for solutions to lifestyles’s thorniest cash problems. Put up your questions, inform me what you wish to have to grasp extra about, or weigh in on the newest Moneyist columns.

The Moneyist regrets he can’t respond to questions for my part.

Earlier columns by way of Quentin Fottrell:

If I purchase a house with an inheritance and simplest put my title at the deed, does my husband have any rights? 

I cosigned my boyfriend’s loan, however I’m no longer at the deed. I didn’t wish to marry once more after a pricey divorce. How do I give protection to myself?

My mom claims I’m in her will however refuses to turn it to me. Will have to she put my title at the deed to her house?



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