QUESTION
Can my ex-wife be criminally liable for emptying the 529 savings account?
Asked on May 21st, 2015 on Child Custody - Wisconsin
More details to this question:
I have been contributing to the 529 college savings account for my daughter. Over the course of her life, I have contributed a substantial amount of money, substantially more than my ex wife. Now she has emptied the account and is using the money for her own personal reasons and her massive debt. What can I do and who do I need to notify?
3 ANSWERS
Dispute Resolution Attorney serving Seattle, WA
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Law Offices of Helene Ellenbogen P.S.
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Depending on the child support language you may have recourse under the family law court. Otherwise, it is a question of whether or not she had legal access to the account.
Answered on May 21st, 2015 at 5:51 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See an attorney with the details, there are a number of issues raised, including taxation. Such is normally not, but could be, a criminal matter. Too little facts to form an opinion.
Answered on May 21st, 2015 at 4:13 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First things first: notify your divorce lawyer. If you did not have one then, find one now. Apart from that, closely review the divorce decree and any agreements which were incorporated into it. She might be violating one or the other and that would suggest you file a motion for contempt of court. (While emptying a 529 account might count as embezzlement, the authorities are unlikely to be interested in pursuing it and after all, what good would a criminal charge do? She probably cannot restore the money.) Good Luck.
Answered on May 21st, 2015 at 4:11 PM