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Berchem Moses PC
  • Milford 203-783-1200
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Property division involving trusts can be tricky during divorce

A contentious divorce can easily chip away at one's family's wealth. This is why trusts can come in handy during divorce. Unfortunately, people in Connecticut do not always understand how to handle trusts during divorces, particularly with regard to property division negotiations, for example.

Sometimes, parents put money into an irrevocable trust for their adult children in an effort to protect their wealth from their children's spouses in the event their children get divorced. To serve this purpose, the trust must have been drafted correctly. If it was not set up properly, the funds placed in the trust for an adult child will be treated as marital property by the divorce court, meaning it is subject to division between the parties to the divorce.

Generally, any assets that are placed in trusts that were established prior to marriage are exempt from treatment as marital assets. This is true only if these funds are not commingled with marital funds. If money leaves the trust, then the trust is essentially defeated, unless a prenuptial agreement dictates otherwise.

The process of a Connecticut divorce can be complicated, especially when trusts and high-value assets are involved. Knowing one's rights is essential when it comes to issues such as property division, particularly when both parties cannot see eye to eye on how address these matters. With proper legal guidance, people may effectively fight for their best interests while still taking into consideration the other party's needs and wishes in order to achieve a fair and binding settlement.

Source:, "Why Some Trusts Crumble and Some Endure During Divorce", Amy Feldman, March 26, 2016

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Berchem Moses PC
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Milford, CT 06460
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