Children's Accounts - How to Value and How to Address

Children's accounts, also known as custodial accounts, are financial accounts established for the benefit of children.

Most common accounts held for the benefit of children:

• Savings Accounts
• Investment Accounts
• 529 College Savings Plans (Note: can only be in one parent's name)
• UTMA/UGMA Accounts

Considers source of funding of these accounts, like other assets, to determine if they are shared or individual accounts.

Key Considerations:

• Intended purpose of children's accounts, such as saving for education or providing financial support for the children's needs, may influence how they are handled in divorce
• Unless parents have substantial financial need for their own support, most parties choose to continue to maintain the accounts for the benefit of the children
• May disagree on who will have control over the assets for the benefit of the children
• Both parents typically want access to children's accounts and visibility in use
• Consider making sure other parent is successor on any benefit for children

Careful consideration and strategic planning are essential for addressing children's accounts in a manner that prioritizes the children's welfare and financial security.