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Bank Account for a Minor

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dantarantado

Active Member
What is the name of your state? WA

I opened an account for my son when he was a baby, he is 8 yrs old now. I am not sure what kind of account it is, but it is under his and my name, and as far as I can remember, my son can have access to it only when he reached the legal age of 18.
My question is.. If me and my husband get a divorce, will that bank account be included in the "separation of property"? I have been trying to save money for my son's future, and it will really devastate me if my husband will get half of it.
 


LdiJ

Senior Member
What is the name of your state? WA

I opened an account for my son when he was a baby, he is 8 yrs old now. I am not sure what kind of account it is, but it is under his and my name, and as far as I can remember, my son can have access to it only when he reached the legal age of 18.
My question is.. If me and my husband get a divorce, will that bank account be included in the "separation of property"? I have been trying to save money for my son's future, and it will really devastate me if my husband will get half of it.
If your husband makes a big enough stink about it its possible that it could end up as part of the property settlement. However you also both could agree (and/or possibly convince a judge) that its your son's future and should be left alone.

What tends to happen sometimes is that neither party trusts the other to leave the money alone for the child, and sometimes both parent's names end up on the account.
 

Taxing Matters

Overtaxed Member
My question is.. If me and my husband get a divorce, will that bank account be included in the "separation of property"? I have been trying to save money for my son's future, and it will really devastate me if my husband will get half of it.
If you did it correctly, that money belongs to your son, not to you or your husband. In that case, the money would not be split between you and your husband in a divorce. You could argue over who gets to be custodian of the account for your son, but the role of the custodian is to manage the account for your son. The custodian does not get to use the money for himself/herself.
 

dantarantado

Active Member
If you did it correctly, that money belongs to your son, not to you or your husband. In that case, the money would not be split between you and your husband in a divorce. You could argue over who gets to be custodian of the account for your son, but the role of the custodian is to manage the account for your son. The custodian does not get to use the money for himself/herself.
Yes, that's why I opened that account, because when my son was born, he received monetary gifts from family and friends, so I decided to put it in the bank. And I continue depositing regularly, from the money I earn from my online business. All transactions are "deposits", there was never a time, not even once, that I withdrew money from that account.
 

adjusterjack

Senior Member
I continue depositing regularly, from the money I earn from my online business. All transactions are "deposits", there was never a time, not even once, that I withdrew money from that account.
I think you are trying to make the distinction that those earnings belong to you. They don't. WA is a community property state. Earnings of both spouses belong to the marital community.

That you are co-owner on the account might make it community property. Read the following statute on Uniform Transfers to Minors to see what it takes to protect the account:

https://apps.leg.wa.gov/RCW/default.aspx?cite=11.114
If divorce is in your future I suggest you consult an attorney on how to fix the account if it needs fixing.
 

dantarantado

Active Member
I think you are trying to make the distinction that those earnings belong to you. They don't. WA is a community property state. Earnings of both spouses belong to the marital community.
I'm a little confused.. So, is there no such thing as "savings for the kids"?
 

Zigner

Senior Member, Non-Attorney
I'm a little confused.. So, is there no such thing as "savings for the kids"?
Sure there is - but it's not just a savigns account that you open. A link was posted to the Uniform Transfer to Minors Act above. Read that and then Google it for your state to get an idea of how to proceed.
 

Ohiogal

Queen Bee
Yes, that's why I opened that account, because when my son was born, he received monetary gifts from family and friends, so I decided to put it in the bank. And I continue depositing regularly, from the money I earn from my online business. All transactions are "deposits", there was never a time, not even once, that I withdrew money from that account.
Do you pay tax on what you earn from your online business? How much from what you earn from your online business is deposited into your son's account?
 

dantarantado

Active Member
Do you pay tax on what you earn from your online business? How much from what you earn from your online business is deposited into your son's account?
Yes I pay taxes. I started my business in 2016. It's just a small online store so I don't earn that much, there's no regular amount of what I earn. The earnings are directly deposited in my personal account, and I just transfer a certain amount to my son's account, depending on how much I earn each time. Some I use to help pay our bills.
 

justalayman

Senior Member
Your husband may be able to argue the child’s savings account is being used to hide your assets. If you have access to it as a co-owner, there is no real difference than your own personal account.
 

dantarantado

Active Member
Your husband may be able to argue the child’s savings account is being used to hide your assets. If you have access to it as a co-owner, there is no real difference than your own personal account.
If my husband agrees that the money is for our son, and he isn't interested with that account, nor my own personal account, will that be honored by the court, or the court will still have to look at it and split them if necessary?
 

LdiJ

Senior Member
If my husband agrees that the money is for our son, and he isn't interested with that account, nor my own personal account, will that be honored by the court, or the court will still have to look at it and split them if necessary?
A court is not going to second guess any agreement you come to unless it includes something illegal or against pubic policy. Property settlement agreements are rarely questioned.
 

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