Many parents start college savings plans for their kids in anticipation of them getting good educations. But when parents' marriages end in divorce and assets and debts are being divided, the question is, what happens to those college funds? The last thing Connecticut parents would want to have happen is jeopardizing their children's educations, so careful consideration should be given to what happens to these funds.
Both parents should have a clear indication of where these funds are being held since there could be more than one college savings fund account such as 529 plans and savings bonds. Account balances, along with who the beneficiaries are for each account should be noted. Beneficiaries should actually be the children for whom the funds are being saved.
To make things as uncomplicated as possible, individuals should try to divide these college savings plans as equally as possible. Once ascertaining how funds in these plans will be split, it should be noted how they might be used by either of the former spouses for their kids' educations. Some plans are earmarked for specific uses like for tuition fees, buying books and supplies or college boarding. Having done that, it may be wise to figure out the additional contributions to these plans moving forward.
There are many issues that can be enmeshed with the divorce of Connecticut parents and college funds are just one of them. An attorney may be able to offer a client advice of the division of assets during separation or divorce, including the division of college savings plan funds. Getting a lawyer's guidance and advice saves the aggravation, cost and stress of having a judge make these kinds of decisions for a couple.