Texas parents want the best for their children, and that often includes providing the funds for a college education. Because tuition can be expensive, parents often need to work together to come up with a savings plan. Of course, when parents go through divorce, this issue may become a bit more sensitive.
For some, discussing this future issue before the divorce is finalized may be wise. After all the effects of property division could greatly affect any savings accounts utilized for this purpose. For instance, if 529 accounts were used to put funds directly toward college savings, those accounts likely faced division. In many cases, however, the parent who opened the account or who funded it most often maintains ownership of them.
In addition to thinking about how property division will affect tuition savings, parents may need to determine whether they want to continue saving for tuition together. They may be able to come up with an agreement that helps them both work toward savings goals for the sake of their kids. If that is not possible, parents may consider setting up separate accounts with the children as beneficiaries.
Divorce can disrupt a number of life aspects, and because parents typically do not want a decision they made to upset the lives of their kids, considering future endeavors may be necessary. If Texas parents are concerned about protecting their children’s tuition savings during marriage dissolution proceedings, they may want to discuss this topic with their legal counsel. Having reliable information could help when forming a plan for future savings.