Custodial accounts

Statistically, it has been reported that 99 percent of divorce litigation is resolved by settlement or voluntarily dismissal. The issue of whether a custodial account in one parent’s name, who has a child, can be kept separate from marital assets when there is a divorce has been examined. Spouses can choose and agree upon which terms or conditions should rule in their divorce as long as there is no violation of public policy. Such a violation would include if a custodial parent tries to waive child support. This is because courts have found that the right to child support belongs to the child.

Most times custodial accounts are set aside for the child in terms of setting up an education fund for schooling and college. After a child goes to college if there is any extra money in the fun then it can get split between the former spouses or the remainder can go to the child. It depends on how the parties have decided it. Each family’s situation lend to a different determination and outcome when it comes to custodial accounts during a divorce, because the facts and circumstances of each family is very different.
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In terms of college tuition for a child, it is important for the non-custodial parent to be very involved in the child’s decision to attend either a public or a private college. One seminal court case, Nebel v. Nebel, 103 N.J. Super. 216 (App. Div. 1968), established what is known as the “Rutgers” Rule. This rule holds that a financially able father must contribute to the college education expenses of a child while the custodial mother could designate a private college. However, the father’s share to pay is limited. Thus, the non-custodial parent can always argue with the legal reasoning from the Nebel case that their legal responsibility to give monies toward the cost of college should be limited to the cost to attend Rutgers, or a similar public college or university in New Jersey.

Seeking advice about being a good co-parent

In times of divorce, an experienced attorney will guide you and advise you in preserving the maximum amount of the marital estate, developing an agreement which the court will approve, and finding the best possible outcome for your children. The law firm of Taylor and Boguski, in Mount Laurel, NJ, can help you. Contact us for a free attorney consultation by calling 800-404-5299 or 856-234-2233, or contact us online.