On July 4, 2026, the new government-authorized savings and investment opportunities, commonly referred to as Trump Accounts, became available for eligible children. These accounts are designed to help families begin building long-term financial assets for their children.
The program provides eligible children born between January 1, 2025 and December 31, 2028, with a $1,000 government-funded starter contribution. Parents, family members, and other approved sources may also make additional contributions. Children born before January 1, 2025 may still have a Trump Account if they meet the general eligibility rules, but they are not eligible for the $1,000 government seed contribution.
What challenges might these new accounts present to attorneys involved in a divorce proceeding?
These accounts may prove to be one of easier assets to address in a divorce litigation. That is because the accounts are owned by the child—not the parents. A parent, legal guardian, or another authorized individual opens the account on the child's behalf and serves as the responsible party/custodian while the child is a minor. However, the child is the account beneficiary and owner from the time the account is established.
Because the account is titled in the child’s name, it will most likely not be subject to equitable distribution like most marital assets are. And after a child becomes eighteen, the account will essentially function as an Individual Retirement Account (IRA), subject to the rules governing the program.
Once the account holder reaches the age specified by the program, funds may be used for qualified purposes outlined in the law, such as paying for education, purchasing a first home, starting a business, or other approved expenses. Specific rules regarding withdrawals, eligibility, contribution limits, and tax treatment are determined by the legislation governing the program.
There may still be some issues that arise regarding these accounts. For instance, the parent serving as custodian may become a point of disagreement. If one parent has control of the account, the other may seek provisions in the divorce settlement that address account management, access to statements, and decision-making authority.
Parents should work with an experienced family law attorney to ensure that any settlement agreement clearly addresses the management of a child's Trump Account and protects the child's long-term financial interests. Navigating equitable distribution and other issues involving children’s assets can be difficult. If you have questions about these issues, contact the experienced family law attorneys at Cohn Lifland.