Can a trust be declared invalid in a divorce?

Can a trust be declared invalid in a divorce?

The settlor spouse must, however, be aware that the other spouse may argue that the settlor spouse has wrongly dissipated assets. If the court agrees, it may declare the settlor’s disposition of funds into a trust as invalid, resulting in the assets placed in the trust reverting back to the spouse.

How are discretionary trusts handled in a divorce?

The position in respect of discretionary trusts is more complex. If a spouse is within the class of beneficiaries in the discretionary trust, then, before the court can treat that interest as a financial resource, it must find that the trustees would be likely to advance trust assets to the spouse either immediately or in the foreseeable future.

Can a trust interest be taken into account in a divorce?

The trust interest can only be taken into account by the court on divorce if the beneficiary spouse will have access to the trust assets at some point within the foreseeable future.

Can a discretionary trust be set up by a disabled person?

Discretionary and life interest trusts can either be set up by the disabled person themselves or by somebody else. In the case of a discretionary trust, there needs to be a named disabled beneficiary and there are restrictions on funds that can be paid for the benefit of anybody else.

Can a trust be an issue in a divorce?

Technically, a trust is not marital property. A trust is a relationship where the property is held by one party for the benefit of the other. That being said, a trust can become an issue in a divorce if it was funded with marital property.

Can a disabled spouse get spousal support in a divorce?

Understanding what’s at stake can help you better prepare for your divorce. A disabled spouse may be entitled to additional spousal support or alimony in a divorce. The rules governing alimony vary from state to state.

What happens if my disabled ex spouse dies?

If your disabled ex-spouse dies, you may still be eligible for SSDI survivor benefits. Many of the same criteria as above are required: you’re over 62, married for 10 years or more, you’re not entitled to a larger Social Security benefit, and you haven’t remarried. I am disabled and unable to work.

Can a person with special needs have an amicable divorce?

In the case of an amicable divorce, it’s not unusual for an ex-spouse to continue playing a supportive role in the life of an individual with disabilities, especially if there are minor children from the marriage. Still, a person with special needs may require an array of new services, depending on the ex-spouse’s previous level of involvement.