Can Your Ex Remove Money From the Custodial Bank Account?

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 law related legal issues, and we want to help you!