When Jessica and her husband, Greg, first opened a college savings account for their daughter, Emily, they made a promise: This money is untouchable. For 16 years, Jessica scrimped and saved—turning down vacations, driving an old Honda, even skipping her own dental work—to ensure Emily would graduate debt-free.
Then, one random Tuesday, Jessica logged into their 529 plan to check the balance.
$0.00
At first, she thought it was a glitch. But when she called the plan administrator, the truth hit like a sledgehammer:
“The funds were withdrawn last week by Mr. Thompson. He said it was for ‘educational expenses.'”
Except it wasn’t.
The Boat Incident
Greg had secretly liquidated $62,000—every penny of Emily’s college fund—to buy a 28-foot Bayliner speedboat. His justification?
“It’s an investment! Boats hold their value!”
Except:
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The boat was a 2007 model (already 16 years old).
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He’d bought it from a sketchy Craigslist ad—no inspection, no warranty.
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He’d already spent $3,000 on “upgrades” (a new stereo and cupholders).
When Jessica demanded he sell it, Greg refused. “You’re overreacting. Emily can just get loans like everyone else!”
The Financial Betrayal
Jessica soon discovered this wasn’t Greg’s first secret withdrawal:
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$8,000 from their emergency fund for a “golf trip with the guys.”
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$5,000 from their joint savings for crypto (which he lost in a week).
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No remorse. Just: “It’s my money too!”
Legally, Jessica was powerless. Because Greg was a co-owner of the 529 plan, he had every right to drain it—even if it was morally bankrupt.
The Fallout
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Emily (then a high school junior) spiraled into depression. “I worked so hard for nothing.”
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Jessica filed for divorce—but because Greg had blown their savings, she couldn’t afford a lawyer.
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The boat? It broke down after 3 months. Greg sold it for $14,000—a $48,000 loss.
The Lesson
Financial experts warn:
🔹 Never share 529 plan access with a spouse who’s bad with money.
🔹 Set up email alerts for withdrawals over $1,000.
🔹 Consider a trust—unlike 529s, trustees can’t raid them for boats.
Now: Emily attends community college while working two jobs. Greg is shocked she won’t speak to him. And Jessica? She runs a support group for women financially betrayed by their partners.