Can I stop my ex-husband from misusing our son’s school savings?

My husband and I have $30,000 saved for our son’s secondary education, but we’re divorcing, and I’m concerned he may try to claim half and misuse it. Is there a way to securely invest or hold these funds so they are protected and can only be used for our child’s education in about six years? Earning some interest would be great, but security is my top priority.

Thanks for your question. There are specific products available to fund children’s education expenses. However, I can’t see that they would provide the protection that you are seeking.

Assets that belonged to both of you as a couple will be split evenly in any divorce proceedings.Credit: Simon Letch

Access to any account or investment is determined by who the signatories on the account are. I imagine the account could be set up with you as the sole signatory, but setting up new accounts and transferring money around while working through a financial settlement is almost always a bad idea.

You should speak to your lawyer and obtain advice. It would appear that this is an asset belonging to you both as a couple, and I would therefore imagine it would be included in any financial settlement.

My parents-in-law have just sold an investment property they held for many years, and should have about $450,000 each after tax is paid on the sale. They’ve been asset rich and cash poor before this sale. They’ve been used to living on the moderate rental income alone and haven’t qualified for any seniors benefits. They are both in their 80s and own their home.

What would be a smart, low-risk use of their cash given their stage in life, to generate some income without putting capital at risk?

A term deposit with monthly interest would be my first thought here. The capital is secure and they will receive regular income. If they rolled it over for a year at a time, it would be reasonably simple to administer. At rollover, they could access some of the principal if they wished.

Note that with this solution, whilst their capital is preserved, it is not keeping up with inflation, and so 10 years from now the purchasing power won’t be what it is today. I suspect capital security is more important than keeping pace with inflation, but it is important they are aware of this issue.

Another alternative would be to place a portion of the monies into a balanced type fund, with the aim of generating higher returns. Return and risk are always linked, however, so they would need to be comfortable assuming that extra risk.

If I have a joint account with my husband and one of us dies, is the joint account frozen? My husband is 93 and in a care home. I am 86 and remain in our home. If he died and the joint account is frozen, how could I buy any food or pay bills?

Yes, I appreciate your concern. If your husband dies, you will become the sole owner of the joint account. There is no need to go through probate in this instance, the survivor simply becomes the sole owner of jointly owned assets.

As to whether the bank freezes the account temporarily whilst they process things, I don’t know, but it would seem possible. Your bank should be able to advise of their standard process in such circumstances.

Perhaps you could establish an account in your name solely, and park some money in it to deal with the concern you have.

Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [e-mail]

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.