Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
The soon to be ex-husband's bankruptcy will have no affect on your children's CDs as long as his name is XXXXX XXXXX the CDs. Even if one is married, they can take individual bankrutpcy and they only include in the assets, assets that are theirs. Since his name is XXXXX XXXXX the CDs he does not have any ownership interest in them and they will not be included in the bankruptcy petiiton.
You can have a POD on CDs, contact your bank to have this arranged. This is always a good idea. The proceeds pass outside of probate upon death of the owners, but will still be added to the gross Estate for estate and inheritance tax purposes.