Custodial accounts are created as a way to give money to children after a
divorce without having to include a trust under their name. While many wealthy
families will establish a trust fund, it is also very common for a divorcing
couple to establish a custodial account. Depending on how the account
is set up determines whether or not a parent is able to withdraw from
the account. Both parents have the right to deposit money into he account,
and if there isn’t a set custodian over the account, or one parent
hasn’t been removed off of the account, then both parents have equal
rights when it comes to that money.
This account is set up by parents for their children who are minors, and
it gives them the opportunity for a checking, savings as well as other
investment accounts. In the event of a divorce, if you and your spouse
had already established these accounts for your children, you will want
to consider these as assets to be divided in the divorce. If you are at
all concerned with the possibility that your ex’s right to withdraw
money will be for personal use and not the children, discuss those concerns
with your attorney. A parent may seek to have the other spouses name removed
from the account, therefore preventing them from access to the money.
In order to have a name removed off of the account however, requires the
approval of the two parents.
Under The Uniform Gift to Minors Act and the Uniform Transfer to Minors
Act, the money in these counts is legally protected on behalf of the children.
While the kids are still minors, a parent will have the right to withdraw
money, the requirement being that it is being used directly for the wellbeing
of the child. If you are concerned that your ex is withdrawing money from
your child’s custodial account so that they can pay off debt, or
other personal things that have nothing to do with the children, legal
steps can be taken.
When it comes to divorce, even the aftermath can be difficult when it is
with an ex-spouse that is hard to count on. If you suspect that withdrawals
are being taken not for the good of your kids, contact your family and
divorce attorney to discuss the situation. These accounts were established
so that the children can be benefited, not the divorced parent. A divorce
is hard enough on the children, stealing their own personal money is not
called for at all. If you or someone you know is considering a divorce,
or has any concerns about life after the divorce,
contact Hutchinson Law today for more information. We have years of experience helping clients
though divorces as well as other family related legal issues, and we want
to help you!