Do College Savings Plans Get Divided in an Illinois Divorce?

 Posted on January 28, 2026 in Family Law

When going through a divorce, dividing assets can be complicated. There may be retirement accounts, one or more homes, businesses, intellectual property, and more. But what happens to the college savings plan you started for your child years ago?

The answer depends on several things, including when the account was opened and who contributed to it. If you have questions about your child's education funds during your divorce in 2026, a DuPage County divorce lawyer can help you understand your options.

Are College Savings Plans Considered Marital Property in Illinois?

The Education Data Initiative says that 35 percent of families have college savings funds. College savings accounts like 529 plans can be considered marital property, separate property, or a mix of both. In Illinois, courts follow "equitable distribution" when dividing property in a divorce. This means the court divides marital property fairly, but not always equally. Under 750 ILCS 5/503, this includes most assets acquired during the marriage.

If you or your spouse opened the account during your marriage with money you both earned, the account is likely marital property. If the account was opened with money from an inheritance or money from before the marriage, that part may be considered separate property.

If you started a 529 plan before getting married but continued adding to it during the marriage, the original balance and any contributions made before marriage might be separate property. The contributions made during the marriage would be marital property.

How Do Courts Decide What Happens to 529 Plans in an Illinois Divorce?

The judge looks at the financial situation of both parents, the needs of the child, and what serves the child's best interests.

Courts generally try to keep these accounts for their intended purpose of funding the child's education. Judges understand that draining or splitting college funds can harm the child's future. However, this does not mean the accounts are automatically protected from division.

If only one parent managed and contributed to the account, they may be awarded the full account. The court might also order the account to be split between both parents. In some cases, the court might offset the value of the college savings account by giving other assets to the spouse who does not get it.

What Happens to Contributions Made During the Marriage?

Contributions to a college savings plan made during your marriage are usually treated as marital property, even if only one parent's name appears on the account. The court will bear in mind whether both parents contributed to the account from their own income sources. The judge might ask questions like:

• Who made the contributions and when

• Where the money came from (i.e., was it earned at a job or a gift from another family member, like a grandparent)

• Whether one parent sacrificed career opportunities to care for children while the other parent worked and made deposits

• How much each parent's income supported the household during the marriage

The goal is to reach a fair division that reflects both parents' contributions to building the family's assets.

Can a Prenuptial Agreement Protect College Savings Plans?

If you and your spouse agreed in writing that college accounts would be separate property, Illinois courts usually honor those agreements. A valid pre or postnuptial agreement can say how college savings plans will be treated in a divorce.

Does the Type of College Savings Account Matter?

Different types of college savings accounts may be handled differently in divorce proceedings. The most common types are:

• 529 college savings plans

• Coverdell Education Savings Accounts (ESAs)

• UTMA or UGMA custodial accounts

• Trust funds established for education

UTMA and UGMA accounts are technically owned by the child, not the parents, and should not be divided as marital property. Trusts set up by third parties (like grandparents) are usually not divided up in divorce.

Each account type has different ownership rules and tax implications. Understanding these differences is important when negotiating your divorce settlement.

Call a Lombard, IL Divorce Property Division Lawyer Today

To understand the effects of asset division on your child’s future education, you should get help from a legal professional. If you have questions about college savings plans or other assets in your divorce, the DuPage County divorce attorneys at Mevorah & Giglio Law Offices are ready to help. 

Our large firm brings more than 175 years of combined experience to every case. We focus on keeping clients informed with frequent communication throughout the divorce process. Contact us today at 630-932-9100 for a free consultation with an experienced divorce lawyer.