It’s normal to have questions about what can be divided and how during a divorce. If you have a trust, you might wonder if your spouse can claim it in your divorce.
Let our team of experienced Illinois trust attorneys at Diamond Estate Planning explain below.
What Is a Trust?
The first thing you need to understand is the definition of a trust. A trust is an agreement for someone to hold property for the benefit of another, and it is created and managed by a document called a trust agreement.
All of the assets outlined in the trust agreement are controlled by an individual called a trustee. You may appoint yourself the trustee of your trust while you are alive, or you can appoint another trusted individual as your trustee.
Some property and assets you can include in a trust are:
- Real estate
- Retirement accounts
- Ownership interests in businesses
Irrevocable vs. Revocable Trusts
There are many types of trusts, but they can be categorized in one of these two ways: revocable or irrevocable.
- Revocable trusts: Can be changed while you are alive.
- Irrevocable trusts: Cannot be changed or ended after its creation.
What Happens to a Trust In a Divorce?
If you created your trust on your own before you were married, it is likely to be considered non-marital property and you will probably keep it after the divorce is over.
Trusts created before the marriage are generally separate property, which is property that is either acquired before the marriage, or inherited or gifted during the marriage.
The assets of a trust will be considered in the equitable distribution process if they contain marital property.
Marital property is any property that is acquired during the marriage. If you included marital property in your trust, then your spouse may be able to claim it.
On the other hand, the division of a trust can be more complicated if you created the trust with your spouse.
Property In a Revocable Trust
If you created a revocable trust with your spouse during your marriage, the assets in a trust are typically divided similar to other property in a divorce. Therefore, some property may be considered separate, and some may be considered marital.
If you don’t know what category the property in your trust falls under in Illinois, it’s important to consult with an experienced McHenry trusts attorney.
Contact Diamond Estate Planning To Take Control Of Your Illinois Trust
If you have a trust that you want to protect, then you need an Illinois trust lawyer who will focus on what you want and getting your family what they need. Contact Diamond Estate Planning Law, and we will work with you to create a plan that is catered directly to your needs and ensures your trust and your legacy is protected.
DISCLAIMER: Any information contained herein is solely for informational purposes and is only applicable in the state of Illinois. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.