New Tax Act Changes Rules for 529 Plans

529 plans are a common asset that’s divided in a divorce.  Perviously these funds could only be used for college expenses.  The new Tax Cut and Jobs Act changes that to allow 529 plans to be used for homeschooling and private school tuition up to $10,000 per year.  This option should be part of any settlement discussion going forward in any child custody divorce.  It will also be interesting to see whether courts weigh in on disputes between parents as to what to do with these plans.  The current state of the law does not allow a court to order college expenses be paid by a parent, but they are allowed to address the educational children.  Stay tuned.