New York trusts may protect assets in a divorce

Posted By Michael R. Varble & Associates, P.C. || 2-Aug-2012

Getting married is supposed to be the happiest time in every New York couple's life. No one wants to think about protecting themselves in the event of a divorce before they have even said I do. However, with more couples getting married later in life, each party has had more of a chance to accumulate wealth and assets prior to marriage.

With the amount of high profile divorces in the news lately, more people may be thinking about how to protect their assets in the event of a divorce. There is nothing wrong with wanting to be practical. Preparing for divorce before getting married may not seem like the romantic thing to do, but the harsh reality is that not all marriage do last, and it may make a divorce more amicable if there is less to fight about.

The fewer assets and other financial issues that have to be dealt with in a divorce, the more possibility there is that things will go smoothly. There are different options when looking to keep assets outside of the marriage. One that appears to be gaining some popularity is the use of a trust.

When assets are put into a trust, they become the property of the trust, and are often excluded as marital property in the event of a divorce. In addition, any monetary distributions from a trust may be excluded when calculating alimony. This can benefit either party since distributions may not be added to a party's income for this purpose. No matter how a New York couple decides to protect their assets prior to marriage, the right advice may help in creating a plan to minimize financial risk for existing assets.

Source: Forbes.com, "Can a Trust Protect My Assets in Divorce?," Jeff Landers, July 18, 2012

Categories: Divorce

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