PA - College Support Issue

I have been divorced for 7+ years, and our decree stipulates that my ex-wife and I pay for our kids' college tuition/room/board in proportion to our net incomes.

When the two kids were born 17/18 years ago, I set up UTMA accounts ($10,000 each) using pre-marital assets (stock mutual funds). Even though I did not add any additional funds to these accounts, they have appreciated quite nicely. Back in March 2009 (when the market was at a nadir) I converted these accounts into 529 plans, and paid the cap gains taxes out of my own pocket (just as I had paid the annual taxes due when they were UTMA accounts). I continue to be the sole custodian for these accounts.

Now that my daughter is preparing to go to college next year, my ex-wife says that her lawyer told her that these 529 monies are "off the top". That is, the 529 funds are applied first, and for the remaining tuition/room/board amounts, my 'ex-' and I pay for proportionally (as per the divorce decree).

Put another way, the argument is that I cannot use the 529 monies in my obligated 'proportion'.

This cannot be true!
Can it??

[annjd]

No.

If you saved, those funds should apply to your obligation.
Ask the court to rule as such if you two cannot agree.