But how useful is a trust or a prenup? How do you know which strategy is right for you? This article defines a position of trust and a marital agreement, and then compares them side by side. 5 Are you right, can prenuptial chords help you? (see March 16, 2015). family.findlaw.com/marriage/can-prenuptial-agreements-help-you.html 6 ID. Setting up a trust before marriage can be one of the keys to separating your partner`s assets. There are several advantages if you put your high-quality assets in a trust, as an article for Forbes explains. If an experienced organization, such as ours, carefully develops the terms of a trust, it can be a very effective asset protection strategy. It can even protect your property in the event of legal action against your spouse. A marital or anti-marriage agreement is a mandatory contract between two people who want to marry. The agreement lists the individual and common assets of each party that should not be included in a divorce comparison. Marital agreements sometimes contain language on how financial and personal property should be distributed in the event of death or divorce, the allocation of pension or education funds, the division of property held by one of the parties before marriage or who own life insurance rights. You can put your money in a Fortune 5 bank, have your trust in a jurisdiction that does not recognize a divorce decree; and I can tell you to be ex-spouse soon when the divorce comes will not be able to get those funds protected. Unlike a pre-marital contract that becomes a pre-marriage contract, a wealth protection trust fund can be created at any time, even after the parties have married.
This is an advantage for those who might not be able to think about the impact of divorce at first, but a number of years could be in another context in terms of marriage or the potential longevity of the relationship. Your client should be aware that he or she should establish this kind of trust before proceeding with divorce and before it is clear that the relationship is heading towards divorce. Wealth transfers, as long as a divorce is pending or sought just before divorce, may prompt a court to declare the fraudulent transfer as a fraudulent transfer to voluntarily protective assets, in which your client`s spouse would otherwise be entitled.14 Depending on the state in which the DAPT is charged, it may provide less liability to your former spouse than a matrimonial agreement. While it sounds like a DAPT, the most advantageous option is, It can be even more advantageous for individuals, even having a marital arrangement. Using these instruments to protect combined assets may be the best way to protect your assets from an unfavorable divorce judgment.
