If your spouse challenges the source of the funds you put into the 529 account, the court could decide that the value of the account is subject to distribution.
There are other concerns with 529 plans as well.
Under New York law, the contributor to the 529 plan is the sole owner, but there is precedent for a divorce court ordering how and when 529 funds must be used, as well as giving the ex-spouse oversight over how the plan is managed.
This can lead to messy situations, since contributors can ordinarily withdraw funds from the plan if they need the money.
But if your 529 is governed by a court order, you may find your options limited. While college savings for your children are important, you should consult with an experienced Queens divorce attorney before making investment decisions while a divorce is pending.
The attorneys at Zelenitz, Shapiro & D’Agostino can help you make smart decisions about your money during a divorce.
Call us today at 718-523-1111 for a free consultation.