Almost half of all Americans will go through a divorce. Manylegal experts state that a prenuptial agreement is best way to protect your possessionscoming into a marriage. However, there are a few trust options, which can helpyou retain your assets during a divorce. These trusts can guard your possessionsfrom unintended beneficiaries, coordinate the distribution of the assets thatare difficult to divide, and shield post-divorce assets from actions and creditors.One of these trusts is a self-settled trust. 13 different states allow thecreation of a self-settled trust. This type of trust permits you to place your own possessions in thetrust for your own benefit. It is recommended that this trust be set up beforeyou have a spouse so that the intent is not questioned. If the trust is not themain source of income, it is less likely that the court will include the trustin the marital estate.
Another trust that could potentially help people keep theirassets is a Delaware statutory trust. This trust includes assets and business sharesas a substitute to limited liability companies. However, if the trust becomespart of a marital estate it can be used as leverage. The individual who wantsthe trust will have to pay the income- tax connected to the trust even if thereis no distribution which will likely deter the ex spouse interested in claimingit.
See Tatiana Serafin, Divorce Trusts, Barron’s, May 18, 2013.
