How Will Divorce Impact A Trust That You And Your Spouse Created Or May Benefit From?
Trusts are well-regarded estate planning tools that can simplify estate administration but may lead to complexities in case of a divorce. Whether you and your spouse have created a trust or are beneficiaries of a trust, the implications of the arrangement may have an effect on your divorce outcome.
As you start planning for divorce, you should create a complete inventory of assets that you and your spouse will need to divide. At Callahan | Barraco, we strongly urge you to get legal advice before attempting to resolve such issues on your own. You may believe you should cancel or change your trust(s). That may be true, but don’t risk making costly mistakes by proceeding without an attorney’s counsel.
Your Case Is Unique And Deserves Individualized Direction
If you created a trust: If you and your spouse have established a trust and now are on the verge of divorce, you may want or need to abolish or alter that trust for myriad reasons. For example, your real estate property that is included in the trust will likely change ownership from both of you to one of you or a buyer. To ensure that your wishes regarding your estate are respected and your divorce negotiations protect your interests, work with a family law attorney as well as an estate planning lawyer or an appropriate expert.
If you and your spouse are beneficiaries of a trust: According to Massachusetts court decisions in the past decade, trust proceeds may be considered marital assets. This is the case even if the named beneficiary is just one of the spouses. In other words, if you or your spouse are the beneficiaries of a trust, the value of your share may be divisible in case of a divorce.
Callahan | Barraco is both an estate planning and family law firm. Our attorneys can advocate for you and advise you on any aspects of trusts for which you are the creator or a beneficiary.
Work With Your Family Law Attorney To Negotiate A Resolution That Makes Sense
Our lawyers have years of experience and a commitment to supporting clients’ needs and priorities. We welcome the opportunity to help you discover and pursue the most appropriate resolution to your estate-related issues as they pertain to your Massachusetts divorce.