What happens to a trust when there is a divorce?
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What happens to a trust when there is a divorce?
On divorce, that relationship is severed and the exiting spouse is no longer a beneficiary of the trust. One complication it is important to be alert to arises if the trustee has made an election under the Tax Act for the trust to be a “family trust”.
Are family trusts protected from divorce?
The short answer is no, not necessarily. Trusts have many uses, particularly for tax, (just ask your accountant, they love them!) and while it is true that trust structures can make a property settlement more complicated, having a trust does not guarantee you can protect those assets from a claim by your ex.
Is a trust part of a divorce settlement?
The short answer is the assets of a standard form of trust are almost always available on divorce (the reasons are set out below). However, with special advice and the use of particular forms of trust, assets can be protected from divorce.
Is Impotence a reason for divorce?
Sexual issues In a number of states, another intimacy related matter—impotency—can also function as grounds for divorce. If a spouse is unable to perform the act of sex with his or her companion, the other member of the couple is within his or her rights to file for divorce.
