When you have a trust and you’re in the process of obtaining a divorce, your trust may be affected. There are several factors that may impact your trust. After you read this page, schedule your consultation with the Denver divorce and trust lawyers of Stahly Mehrtens LLC to learn what you can do to protect your interests.
Does Divorce Affect Different Types of Trusts in Denver?
There are several types of trusts as you likely already know as someone who has a trust or who is a beneficiary of a trust. Colorado Revised Statutes are complex when it comes to trusts. However, when you get divorced, all property must be categorized as either separate property or marital property. It’s vital to get legal advice from an experienced attorney because even if your trust was started or if you became the beneficiary while you were single, there could be circumstances that make at least some of the trust marital property.
The type of trust itself could also determine whether it is separate or marital property. As an example, Colorado Revised Statute currently states that a revocable trust that is created by a third party that makes you the beneficiary is not marital property. The trust can still be revoked or changed by that third party at any moment. As the beneficiary, you don’t have any control over it as the grantor or creator. Had you created the revocable trust and made yourself the beneficiary, it could be a different legal matter that must be untangled for your divorce since you would then have the ability to add and remove assets or revoke it at any moment on your own accord.
What Factors Will the Colorado Court Consider When Dividing Trust Assets?
Trust assets, if they are determined to be marital property, must be split in a manner that is considered fair and equitable. This does not mean that they are split 50/50. You and your spouse could decide that you wish to come to a settlement agreement.
If the trust interest is calculated to have increased and is considered marital property, it may be agreed upon by the spouses as to how to split it. Otherwise, the Court can decide how the interest value shall be split in a fair and equitable manner between the parties.
Protecting Your Trust Assets from Divorce
Because trusts are used for many purposes, it’s imperative that you know how to protect your trust assets from divorce. One of the best actions you can take is before you get married to already have a trust, then you can enter into a prenuptial agreement that names your trust as separate property. If you’re already married, you can talk with a divorce lawyer in Denver to discuss ways that you may be able to protect your trust assets during a divorce. This is crucial because how you may go about protecting those assets depend on the type of trust you have among other factors.
Contact a Denver Divorce and Trust Attorney Today
Trusts create complex issues during the divorce process. Schedule your consultation with the Denver divorce and trusts lawyers of Stahly Mehrtens LLC now.