If you are facing a divorce and you have a trust, it is important to speak with an experienced Denver divorce and trust lawyer to discuss your options. The impact of divorce on trusts can vary depending on a number of factors, including the type of trust, the terms of the trust, and the laws of the state in which the trust is located. In some cases, the trust may be unaffected by the divorce. In other cases, the trust may be divided between the spouses, or the spouse who created the trust may be able to revoke it.
At Stahly Mehrtens Miner LLC, our divorce and trust lawyers have extensive experience representing clients in these types of cases. We understand the unique challenges involved and can help you protect your assets while navigating the divorce process. Our Denver divorce attorneys will work with you to understand the impact of the divorce on your trust and to develop a strategy to protect your interests. Get started with us today by scheduling a consultation. Call us at 303-797-2900 or contact us online.
How Does Divorce Affect Different Types of Trusts in Denver?
When you get divorced, all property must be categorized as either separate or marital property, this includes any property or assets you have obtained via trust. It is important to note that there are several different types of trusts and the Colorado Revised Statutes surrounding them are detailed and complex. It’s vital to get legal advice from an experienced Denver divorce and trust attorney because even if your trust was started or if you became the beneficiary while you were single, there may 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 created by a third party that makes you the beneficiary is not considered marital property. The trust can still be revoked or changed by that third party at any moment and 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 since you would then have the ability to add and remove assets or revoke it at any moment on your own accord.
Equitable Distribution In Trust Asset Division
Trust assets, if they are determined to be marital property, must be split in a manner that is considered fair and equitable, this concept is known as equitable distribution. This does not mean that they are split 50/50. You and your spouse may decide to come to a settlement agreement on the terms of trust asset division, or if you cannot come to an agreement, you may ask the courts to decide for you. If possible, it is better to come to an agreement on your own than to ask the courts because once you relinquish the decision to the court, you no longer have a say in how the assets will be divided.
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 to get a prenuptial agreement in place before you get married that names your trust as separate property. If you’re already married, you can talk with a lawyer 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 depends on the type of trust you have among other factors.
Contact Our Denver Divorce and Trust Attorney Today
Trusts can create complex issues during the divorce process, but the team at Stahly Mehrtens Miner LLC can help. Schedule your consultation with our experienced Denver divorce and trust lawyer today by calling us at 303-797-2900 or contacting us online.