529Plan in NJ

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davefromnj

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New Jersey
While married, against my ex-wife's wishes, I established a 529Plan for our daughter. I had inherited $163K, a portion of which was used to fund the plan. The value of the plan as of the date of divorce was $58K. In our original divorce settlement that was signed off by a judge, there was no mention of the 529 Plan and no discussion of how college costs were to be paid.

Fast forward 5 years later and college years about to begin. I continued to fund the plan on my own and the value has now reached $150K. My ex and her attorney are now saying that half of the $58K plus earnings since the date of divorce on that $58K (would love to know how that is calculated) represent my ex's contribution towards college. The plan is in my NAME only with my daughter as the beneficiary.

I feel since the original divorce agreement was silent as to the sharing of college costs and did not mention the 529 Plan, my ex has no right to claim any of these funds as her's.

Please advise.
Thank you!
 
I feel since the original divorce agreement was silent as to the sharing of college costs and did not mention the 529 Plan, my ex has no right to claim any of these funds as her's.

Please advise.

I haven't read your divorce decree (and if applicable, any divorce settlement) to see exactly what it says. I suggest you see a family law attorney in NJ and have him/her read over those documents and advise you on where you stand.

Is the issue here that the decree/agreement requires you each to contribute to the daughter's college and your ex-wife now wants to claim a portion of the § 529 plan as her contribution that requirement?
 
I haven't read your divorce decree (and if applicable, any divorce settlement) to see exactly what it says. I suggest you see a family law attorney in NJ and have him/her read over those documents and advise you on where you stand.

Is the issue here that the decree/agreement requires you each to contribute to the daughter's college and your ex-wife now wants to claim a portion of the § 529 plan as her contribution that requirement?


There is NO mention of college costs in the decree/agreement and NO mention of the 529 plan in the decree/agreement, period.

I was looking to try and get her to contribute towards my daughter's college education and out of nowhere she is claiming she is entitled to a portion of the 529 plan.

.
 
On the face of it she's not entitled to any of the 529 money, but on the other hand, she's not obligated to pay anything toward the college expenses.
 
I was looking to try and get her to contribute towards my daughter's college education and out of nowhere she is claiming she is entitled to a portion of the 529 plan.

That kind of says it all.

Based on my relatives' experience in NJ on the issue of college tuition, when not addressed in the divorce decree, I don't think she can be forced to contribute towards her daughter's college education.

Hopefully she'll at least fill out financial aid forms in a timely manner.
 
There is NO mention of college costs in the decree/agreement and NO mention of the 529 plan in the decree/agreement, period.

There is the possibility, though, that some general language in the decree or agreement could impact this, even though it does not specifically mention the § 529 plan. That's why it would be a good idea for a family law attorney to read those documents over.

I was looking to try and get her to contribute towards my daughter's college education and out of nowhere she is claiming she is entitled to a portion of the 529 plan.

Then just on what you've said here it seems likely she can't claim any part of the § 529 plan as being her contribution to the college expenses, but then if there is no stated requirement in the decree that she help pay for college expenses it may not end up making any real difference.
 
"Saying"? Have you been served any court papers yet?



She can "claim" anything she wants. You have the right to say "No."

We are going through mediation in an attempt to settle post divorce debts she owes me and sell the marital residence. I am fuming because my ex's attorney made this assertion (that 50% of the value 529 plan at the date of divorce plus accrued earnings since - is attributable to my ex), the mediator agreed and my attorney refused to comment. I feel like I am living in the twilight zone.
 
We are going through mediation in an attempt to settle post divorce debts she owes me and sell the marital residence. I am fuming because my ex's attorney made this assertion (that 50% of the value 529 plan at the date of divorce plus accrued earnings since - is attributable to my ex), the mediator agreed and my attorney refused to comment. I feel like I am living in the twilight zone.
As was mentioned above, it's possible that the language of your divorce decree, while not specifically mentioning the 529, may impact it. You have an attorney - ask your attorney.
 
My ex and her attorney are now saying that half of the $58K plus earnings since the date of divorce on that $58K (would love to know how that is calculated) represent my ex's contribution towards college.

It's pretty easy to determine when contributions were made, and everything else is earnings. Earnings would also be reported on statements, and it would present no difficulty to determine when the earnings were credited to the account.

Please advise.

Advise about what? Given that your "divorce settlement that was signed off by a judge . . . [contains] no discussion of how college costs [are] to be paid," who cares that your "ex and her attorney are . . . saying . . . [anything about your] ex's contribution towards college"?

I was looking to try and get her to contribute towards my daughter's college education and out of nowhere she is claiming she is entitled to a portion of the 529 plan.

In your original post, you told us that the 529 plan was not mentioned in the divorce settlement/decree. Why was it not mentioned? Did you disclose the existence of the plan during the divorce proceedings leading up to the settlement? If you did not, then her argument may well be viable, and you might want let sleeping dogs lie since, beyond what the divorce decree says (which is apparently nothing) neither one of you has any legal obligation to pay for your child's college.
 
As was mentioned above, it's possible that the language of your divorce decree, while not specifically mentioning the 529, may impact it. You have an attorney - ask your attorney.

Forgive me if this is inappropriate. I have uploaded my divorce settlement agreement. Its very brief and a quick read. I have blackened out last names. I am losing faith in my attorney, she seems too distracted and does not pay attention to details and rather than taking a position she said she is deferring to the mediator's decision which I do not believe is correct nor is it in my best interests.
 
Forgive me if this is inappropriate. I have uploaded my divorce settlement agreement. Its very brief and a quick read. I have blackened out last names. I am losing faith in my attorney, she seems too distracted and does not pay attention to details and rather than taking a position she said she is deferring to the mediator's decision which I do not believe is correct nor is it in my best interests.
Review of your decree is beyond the scope of this forum. Speak to your attorney.
 
I apologize

Thank you

If you have lost faith and confidence in your attorney, you consult other attorneys.
Once you find an attorney you can trust and afford, that attorney will begin the process of becoming your attorney of record.
As with everything in life, when you no longer trust someone, you sever all ties with that person.
That is the same thing you'd do if you hired a contractor who didn't perform to your satisfaction.
 
Forgive me if this is inappropriate. I have uploaded my divorce settlement agreement.

I don't see it. Did you remove it? If so, there's nothing inappropriate about it as long as it doesn't contain identifying information.

Also, you should answer the questions I asked in my prior response.
 
I don't see it. Did you remove it? If so, there's nothing inappropriate about it as long as it doesn't contain identifying information.

Also, you should answer the questions I asked in my prior response.

My ex always fought the idea of a 529 plan because her position was our daughter "can work her way through college, just like everybody else" (funny and true fact, I paid $45K to put my ex through college). When I inherited some money I paid off our HELO and paid down our mortgage I told her I was using the remainder to commence a 529 plan and told her I would be contributing whatever I could from then onward - that was in 2012. She has narcissistic personality disorder (something I did not realize then) and she never tolerated money being spent on myself or her child, every penny earned had to be spent on her or she would throw a tantrum - top designer everything, luxury cars, jewelry, etc. She was very bitter about me saving money for our daughter's education - I think that is why she left it out of the divorce settlement - she never wanted to acknowledge it. Now of course that college is right around the corner, her attorney advised her to "grab whatever she can".
 
My ex always fought the idea of a 529 plan because her position was our daughter "can work her way through college, just like everybody else" (funny and true fact. . . .

Instead of taking 183 words to bad-mouth your ex, it would have been great if you had answered the questions I asked in my first response in this thread.

As far as your divorce judgment and settlement agreement, they are consistent with what you wrote, so any further input will depend on how you answer the questions I asked.
 
Instead of taking 183 words to bad-mouth your ex, it would have been great if you had answered the questions I asked in my first response in this thread.

As far as your divorce judgment and settlement agreement, they are consistent with what you wrote, so any further input will depend on how you answer the questions I asked.

The OP brought this on himself by agreeing to such an incredibly vague settlement agreement.
 
My ex always fought the idea of a 529 plan because her position was our daughter "can work her way through college, just like everybody else" (funny and true fact, I paid $45K to put my ex through college). When I inherited some money I paid off our HELO and paid down our mortgage I told her I was using the remainder to commence a 529 plan and told her I would be contributing whatever I could from then onward - that was in 2012.
BLAH, BLAH, BLAH.

1) Get an initial consult with another lawyer or three. Your decree sucks.
a) If your ex couldn't afford to refi in her own name and buy you out at the time of the divorce, then the house should have been sold then. Ditto for the cars.
b) You really agreed to no holiday time, no vacation time with your child?!

2) What are your daughter's expectations? What is your daughter's aptitude? Have you read any of the popular self help books about college admissions?

3) Colleges don't care about divorce decrees. They expect both parents to contribute. Become familiar with the calculators.
 
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