In the event of divorce, parents frequently believe that the balance in their children’s savings account should be divided between them is not acceptable. The balance in the child’s savings account is not part of the matrimonial community of property and thus cannot be divided in the event of a divorce. If parents save in their own name for the child, this may be different.
SAVINGS BALANCE IN THE NAME OF THE CHILDREN
If the savings account is in the name of the children, the savings belong to the children. The remaining funds are the children’s assets. In the event of a divorce, parents do not divide the balance in the children’s savings account. In that case, what is permitted and what is not?
MANAGEMENT
Savings are only managed in the name of minor children by parents with authority. Managing entails keeping the children’s assets as long as possible until they reach the age of majority. The law requires parents to do this as well as they possibly can. By the way, you can also visit how to hire an attorney or what to do if you’ve been in an accident. As good administrators, parents with authority must administer their children’s property. Both custody parents keep control of their children’s assets after the divorce. This also applies to any savings account you have opened in your minor child’s name. This means that parents cannot take the money out of the account. They may have access to the savings of the children in theory. When a parent withdraws money from their children’s savings account, the latter can go wrong in practice.
WITHDRAW BALANCE
In theory, parents are not allowed to use their children’s assets to cover the costs of caring for and raising them. Not even for the family’s general expenses, and certainly not for themselves. After all, it is the parents who are in charge of their children’s upkeep. In theory, they must support the children with their own money or assets. In exceptional circumstances, a parent may wish to dispose of a minor’s assets in a way that is not consistent with normal management. In this case, the parent can request permission from the subdistrict court. This applies not only to borrowing money from children, but also to draw on a minor’s estate for the minor’s upkeep.
IMPROPER RULE
When a parent withdraws money from their children’s savings account without their permission, the court may conclude that the account has been mismanaged. In the event of improper administration, the parent is responsible for the harm caused to the children. In general, the damage is equal to the amount withdrawn from the account. All of this is true insofar as the withdrawn funds are not considered capital gains.
FRUITFULNESS
Parents do have usufruct over their children’s assets. When interest is due or payable, a child’s right to interest falls under the parental enjoyment of the child. This interest can then be appropriated by the parent. If the interest is only paid after the beneficiary reaches the age of majority, the parent loses his or her right to the interest owed during the child’s minority. The fruits do not appear until the individual has reached adulthood.
SAVINGS BALANCE FOR THE CHILDREN IN THE NAME OF THE PARENTS
If parents save for their children on their own accounts, the savings balance is considered to be part of the parents’ matrimonial community. This savings balance is divided between the parents in the event of divorce. This could be different if parents knew they were only going to save for their children when they opened the savings account. As a result, children cannot automatically claim their parent’s account balance.
HOW DO YOU PREVENT YOUR EX-PARTNER FROM USING THE CHILDREN’S SAVINGS
the savings account It is possible to stipulate in the divorce agreement that one of the parents will manage the children’s savings account. In that case, the managing parent sends annual balance statements to the other parent. The other parent can keep track of the balance this way. A savings account with a BEM clause is also a viable option. This clause entails placing a “lock” on a child’s bank account, which prevents the balance from growing during the child’s minority. In that case, parents can only sell the balance with the subdistrict court’s permission. Finally, after the divorce, you can save for your children in your own bank account.