When a divorce turns to the division of property, the circumstances of each piece of property's ownership and the standards of that state can determine who receives what.
In the case of children's property, the issue of ownership can become more complicated.
As parents may have put their own money into a given account, depending on who specifically owns the account can determine whether that money can be affected by the terms of divorce.
Parents establish bank accounts for their children for a number of reasons.
In some situations, a parent may set up a savings account to teach their child about the virtue of putting away money for a later date and building proper financial habits.
On the other hand, a parent may set up a savings account or similar interest-based account with the intent of using that money for educational purposes.
If the parent or parents who established the account put the funds in the name of the child and did not attach their own names, that money has precedent of being the property of the child or children, and not the parents.
This means that the money cannot be divided by a divorce, as neither one of the marital estates has a claim to it.
The property is considered to be a part of the child's estate, even if they are still a dependent of an adult.
Where the law becomes more confusing is if a parent's name is attached to the account.
Especially if both parents legally own portions of the account, the result can create a legal contest over who rightfully controls the account.
This can become even more problematic if the parents have spent some of the account on other expenses.
Given the complexity of these situations, contact a divorce attorney if you want to learn more about how these situations play out in court.