Divorce is seldom an easy process. Many Arizona residents with children going through a divorce know how stressful it can be. Between child support and child custody, the kids may often bear the unexpected burden of divorce. Among the many issues related to asset division in a high-asset divorce, parents of children may also have to cope with how to manage any money currently set aside to help pay for a child's future college expenses.
Most parents aspire to see their child attend college but realize the financial difficulties. That is why many parents put money away in a 529 plan, which works as a college saving investment plan with tax advantages. But with most assets in divorce, they'll need to be divided. Parents with a 529 will often contemplate what to do with the account upon divorce. In normal circumstances, an individual can withdraw from the account at anytime but will face a tax penalty if the money is not used towards education.