Interesting divorce situation

#3 05-08-2004, 11:36 AM

G`otta love how kids "won't be affected" by the divorce huh - NOT! I
can just imagine the OTHER crap that they're fighting about......

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#2 05-05-2004, 07:16 PM

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

> Couple in process of divorce. There is one child - a
> 12-year old son. Husband has created and is custodian of
> $25,000 mutual fund for son. (Is registered as UGMA account
> with father as Custodian and son's SS number.)
> According to my client, attorneys for both parents have said
> that Custodial property is family property since it was
> created during term of marriage. As such, it is subject to
> being split by Family Court.
> I think that is hogwash. My view would be that the Family
> Court might change who is the Custodial parent, but the
> asset itself is owned by the child who is not a party to the
> divorce. Has anyone encountered this?

I have NOT encountered this, but I am with you on the
analysis of who owns the asset.

Gene E. Utterback, EA

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#1 05-04-2004, 04:20 AM

HW "Skip" Weldon wrote:

- quote -

> Couple in process of divorce. There is one child - a
> 12-year old son. Husband has created and is custodian of
> $25,000 mutual fund for son. (Is registered as UGMA account
> with father as Custodian and son's SS number.)
> According to my client, attorneys for both parents have said
> that Custodial property is family property since it was
> created during term of marriage. As such, it is subject to
> being split by Family Court.
> I think that is hogwash. My view would be that the Family
> Court might change who is the Custodial parent, but the
> asset itself is owned by the child who is not a party to the
> divorce. Has anyone encountered this?

The only instances that I am aware of where a court included
UGMA/UTMA accounts as part of the divorce settlement, were
where the court determined that the custodian was using the
account to hide assets and income from the other spouse.

On another note, state law would determine whether these
accounts should be a factor in determining child support
payments from the noncustodial parent.

--
Alan
http://taxtopics.net

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05-04-2004, 04:00 AM

"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

> Couple in process of divorce. There is one child - a
> 12-year old son. Husband has created and is custodian of
> $25,000 mutual fund for son. (Is registered as UGMA account
> with father as Custodian and son's SS number.)
> According to my client, attorneys for both parents have said
> that Custodial property is family property since it was
> created during term of marriage. As such, it is subject to
> being split by Family Court.
> I think that is hogwash. My view would be that the Family
> Court might change who is the Custodial parent, but the
> asset itself is owned by the child who is not a party to the
> divorce. Has anyone encountered this?

No, but from a legal standpoint you are correct. Sounds
like that child might need a guardian ad litem.

Stu

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#-1 05-03-2004, 07:59 AM

Couple in process of divorce. There is one child - a
12-year old son. Husband has created and is custodian of
$25,000 mutual fund for son. (Is registered as UGMA account
with father as Custodian and son's SS number.)

According to my client, attorneys for both parents have said
that Custodial property is family property since it was
created during term of marriage. As such, it is subject to
being split by Family Court.

I think that is hogwash. My view would be that the Family
Court might change who is the Custodial parent, but the
asset itself is owned by the child who is not a party to the
divorce. Has anyone encountered this?

-HW "Skip" Weldon
Columbia, SC

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