The Effects of Divorce on 529 Plans, College Saving Plans, Qualified Tuition Plans, Custodial Accounts and Trusts, or other investment or savings vehicles.
Equitable distribution is a basic component of Florida divorces. People are oftentimes consumed in dividing their marital assets like real estate property, boats, automobiles, bank accounts, retirement accounts, and the like. However, 529 Plans, College Saving Plans, other qualified tuition plans, or other investment or savings vehicles such as custodial accounts and trusts are lost in the mix of the dividing chaos. They become either forgotten, neglected, or assumed to simply be the property of the child and therefore not subject to equitable distribution.
Whatever the situation might be, the college savings plan is most often an asset of the marriage. It is important to know that because of the marital nature of this asset; college savings plans are subject to being divided as part of an equitable distribution scheme and should be taken very seriously.
Take for example a Florida 529 Savings Plan. The Florida 529 Savings Plan allows parents to start this fund at any time and for as long as they would like to fund the plan. The Florida 529 Savings Plan should simply be viewed as a savings account, albeit with special incentives, but is nonetheless an account. As such, this account is an asset that will be divided equally pursuant to Florida law, specifically Florida Statute 61.075.
Protecting your assets so that you have a full and fair settlement agreement, or that you don’t forget about certain property, is fundamental while going through a divorce. This is not only about protecting your assets, but also protecting your child’s future. Untying the mesh of financial disarray during a divorce is already stressful enough and most people are prone to overlook some assets.
Divorce is complex. Don’t go at it alone. Contact us today to talk about how family lawyers at Morgan & Barbary, P.A. can help you navigate the cloudy waters of equitable distribution in Florida.
John V Moore, Esquire