New York City Family Law Blog

We are continuing our discussion of the New York Law Revision Commission's recommendations for changes to the state's alimony, or spousal maintenance, laws. In 2010, the Legislature asked the commission to evaluate a number of new laws enacted that year; the laws were a first step at revising the state's approach to alimony. The commission took more time than the Legislature had anticipated, but lawmakers and family law attorneys are pleased with the results.

The commission's research showed that current laws pull the system in opposite directions: Temporary alimony laws are designed for consistent outcomes, while the laws for final alimony promote more individualized results. The commission added that the O'Brien precedent provided a whole new layer of complexity.

When NFL linebacker Jovan Belcher shot his girlfriend and then took his own life, he left the couple's 3-month-old daughter without a legal guardian. Apparently neither parent had a will in place, and just six months later the baby is at the center of a custody dispute between the two families.

Belcher's mother, Cheryl Shepherd, was granted temporary custody within days of the couple's deaths. She petitioned the court soon thereafter to be granted permanent custody and to be conservator of Zoey's estate, the bulk of which was inherited from Belcher.

We are still talking about how to handle 529 plan accounts in a divorce. So far, we have talked about freezing the account and the pros and cons of that approach. One of the cons is that one parent will have control of the account. In a particularly contentious divorce, that may not sit well with the other parent.

It is also possible to split the account. Couples should keep in mind that splitting an account requires a court order, but once the order is filed, the state of New York would have to abide by it.

A personal finance radio show caught our attention recently. The guest was talking to average Americans about how to handle their college loans. One caller was close to tears as she explained that she was getting divorced, had overwhelming student loan debt (both federal and private loans) and, on top of everything else, had a fairly significant medical bill, too. 

The federal government has a number of programs that help people with student loan debt. The government also has a program that helps parents prepare for their children's college education, the 529 plan. With the 529 plan, parents can set money aside for their children's education. When the time comes to pay tuition and other college-related expenses, the funds are available and are not subject to federal income tax.

What happens to the plan funds, though, if the parents divorce?