The Uses of Living Trusts to Protect Assets in Divorce

 Posted on October 26, 2012 in DIvision of Property

There are two things that can ruin your financial security, the first is taxes; the second is divorce.  The gruesome stat about divorce is that 50% of marriages end up that way.  So for those who have worked to build some savings or are the beneficiaries of someone's will, you should consider shielding your assets in case of a divorce.  There are a couple of ways you can keep your previous property separate just in case.

The first way is through premarital or post-marital agreements.  These contracts can specify the division of property after a marriage has ended.  Just as you could safeguard family heirlooms from your spouse, you can also protect assets that come from your family.  Yet these kinds of documents are not as effective when dealing with income, due to the fact that you can't limit things like child support in these agreements.

The easiest way to guard your income is by setting up an irrevocable trust.  This kind of trust is no longer your assets because they are controlled by the trust.  Creditors and ex-spouses are not able to access these kinds of accounts either.  The trust can also be structured to protect your assets as they are inherited by children and grandchildren.

To protect your hard work, consider the different options you have before tying the knot.  A family law attorney will be able to assist you on any issues that come up before or after your union.  Please contact a knowledgeable family law lawyer in Kane County who can guide you through the legal jungle of divorce and the division of property.