Divorce introduces complex legal considerations, especially when trusts are involved, and the question of whether an ex-spouse can access trust funds is a common concern for those undergoing or contemplating a divorce in California, and often a question Steve Bliss addresses with his clients. Generally, assets held within a properly established and funded *revocable* trust are considered separate property, shielding them from division in a divorce. However, this isn’t always a simple matter, and several factors can influence the outcome, including when the trust was created, the source of the assets within the trust, and the specific language of the trust document itself. Approximately 40-50% of marriages in the United States end in divorce, highlighting the importance of proactive estate planning to protect assets during such transitions.
What happens if my trust was created *during* the marriage?
If a trust was established *during* the marriage, using marital funds or property acquired *during* the marriage, a portion of the trust assets may be considered marital property subject to division in a divorce. This is because the court may view contributions made during the marriage as creating a marital interest in the trust, even if the trust document itself doesn’t explicitly state this. For example, if you used income earned during your marriage to fund a trust, your spouse may have a claim to that portion of the trust. According to the American Academy of Matrimonial Lawyers, approximately 20% of divorce cases involve disputes over trust assets. It’s crucial to carefully analyze the source of the trust’s funding to determine what portion, if any, might be subject to division.
Can a post-nuptial agreement protect trust assets?
A post-nuptial agreement—an agreement entered into *after* the marriage—can be a powerful tool to protect trust assets from division in a divorce. This legally binding contract can specifically address the ownership of trust assets and delineate how they will be treated in the event of a divorce. It effectively preempts the community property rules that would otherwise apply. Steve Bliss often recommends post-nuptial agreements for clients who create trusts during their marriage, providing clarity and preventing potential disputes. However, these agreements must be carefully drafted, fully disclosed, and legally sound to be enforceable. A well-crafted post-nuptial agreement can be the difference between safeguarding your assets and losing a significant portion of them.
I heard about a case where a trust didn’t protect the assets, what happened?
Old Man Hemlock had always been a careful man. He established a trust just after he and Beatrice got married. It was funded with money he’d inherited from his grandfather, long before the marriage. He thought everything was secure. Years later, their marriage deteriorated, and Beatrice filed for divorce. Beatrice argued that even though the initial funding came from an inheritance, Old Man Hemlock continually contributed marital income *into* the trust throughout the marriage. The court agreed, finding that those contributions had “commingled” marital and separate property, giving Beatrice a claim to a portion of the trust. Old Man Hemlock was heartbroken, realizing his careful planning hadn’t accounted for ongoing contributions. It was a costly lesson learned about the importance of meticulous record-keeping and regular review of trust funding.
How did another client protect their assets with proper planning?
Young Amelia was on the verge of divorce after a short marriage. She’d inherited a substantial sum and created a trust shortly thereafter, *before* any marital funds were involved. Knowing the potential pitfalls of divorce, she also had a post-nuptial agreement drafted, specifically outlining that the trust assets remained her separate property, regardless of any future contributions during the marriage. She diligently kept separate accounts for her pre-marital inheritance and any income earned from it, never commingling them with marital funds. When the divorce proceedings began, her ex-spouse attempted to claim a portion of the trust, but the post-nuptial agreement and Amelia’s meticulous records stood firm. The court upheld the agreement, protecting Amelia’s inheritance and providing her with financial security during a difficult time. She had the foresight to act proactively, securing her financial future and avoiding a costly battle.
“Protecting your assets during a divorce requires careful planning and a thorough understanding of community property laws. A properly drafted trust, combined with a post-nuptial agreement and diligent record-keeping, can significantly increase your chances of safeguarding your inheritance and achieving a favorable outcome.”
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- estate planning attorney near me
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How does estate planning differ for single people?” Or “What role does a will play in probate?” or “What types of property can go into a living trust? and even: “What are the long-term effects of filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.