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pab_tx
I need some information on how a 529 plan is viewed during a divorce in TX. My in-laws put $50,000 in a 529 for my son who is their step-grandson. They put it under my husband's name with my son as the recipient of the funds.

We were together for 10 years and now he has filed for divorce. He has removed the entire $50,000, saying that he transferred it to his niece instead. My son is 17 and for years we 'thought' we had college $ covered for him, now I am back at ground zero.

My questions:

1) Is (was) the $50,000 considered joint marital property? TX is a community property state.

2) And if it were considered joint, do I have a right to ask for 1/2 of it placed into a new 529 plan for my son?

cape cod Bob
In a divorce proceeding both parties have to list their assets and since a 529 is an asset I would think that your husband must list it as he could cash it in at any point regardless of the tax consequenses.
Obviously, your attorney would know the legalese of this but from my thinking I would pursue the 529 as his asset since the 529 has to have an owner and in this case your husband. Certainely a point for you to seek 1/2 dollar amount.
good luck!