Save Money for Your Child After a Separation

Saving in Your Child's Name: Both Guardians Manage the Account

When a child has a savings account or fund account in their own name, both guardians manage it until the child turns 18. This applies even if you are separated, and even if one of you only starts saving in the child's name after the separation. Some banks let you set up the account so that neither of you can withdraw money alone — one parent always needs the other's authorization. Otherwise, you both manage the account freely, without needing the other's permission. Check with your bank what applies to you.

If you want to close the account, the money must be moved to another account in the child's name — which both guardians then manage as well. Another option is a locked child savings account. In that case, the chief guardian (överförmyndaren) in your municipality must consent to every withdrawal.

Funds or Stocks: Agree on Risk and Responsibility

If you have funds or stocks saved for your child, you need to keep managing those investments after the separation. Talk about who will look after the money and the investments, and agree on what level of risk you both accept. Higher risk can mean much more money in the end — but also bigger losses if the market crashes.

Good to Know: Deposits Are a Gift to the Child

Money you deposit into a savings or investment account in a child's name counts as a gift. The child owns the money, and taking it back — for example by transferring it to your own account or spending it on yourself — is a crime. The child's guardians manage the money until the child turns 18 and gains full access to the account. If you as a guardian withdraw money, it must be used for something that benefits the child.

Saving in Your Own Name Gives You Control

A common solution is to open a savings account or an ISK (investeringssparkonto, a Swedish investment savings account) in your own name and save for the child there. The advantage is that you fully control the money and the withdrawals, and you decide when the child gets access. If you choose this route, I recommend writing a will that makes clear the money is earmarked for your child if you were to pass away. At icabanken.se you can read more about different ways of saving for children.

Summary: Saving for Your Child After a Separation

An account in the child's own name is managed by both guardians until the child's 18th birthday. If you have funds or stocks for the child, agree on how the savings will be managed after the separation. If you save in your own name, you control the money and withdrawals completely — but write a will so it's clear the money should go to your child.