Asset Protection: Trusts And Vacation Properties In Divorce
Trust funds can be crafted to serve a variety of legal functions. They can play quite a large role during a divorce proceeding for the simple, and often overlooked, reason that assets placed in a trust before marriage are treated as separate property and are untouchable by the divorcing party. Setting up a domestic or foreign asset protection trust will allow you to shift ownership of your property, including a company should you own one, to a separate trust.
In the event of a contentious divorce involving significant assets, property division of the trust assets will be rendered a complete nonissue as you are NOT the owner of them, but rather the TRUST is the owner. Trusts offer more flexibility than prenuptial agreements in that they do not require the consent of the marrying party and may be unilaterally formed by the vested party. When the formation of the trust predates the wedding, the future ex-spouse will be effectively preempted from formulating a viable legal claim against the trust property and all without their foreknowledge.
A Family Attorney Can Provide Legal Asset Protection
The terms and conditions of such a trust must be meticulously crafted by a skilled legal professional in order to ensure the type of protection described above. It is important to exclude unintended beneficiaries, including, but not limited to, ex-spouses.
Divorce is, of course, the furthest thing from the mind of a party considering marriage, but the possibility, which is statistically quite large, nonetheless looms. In order to ensure that legally enforceable safeguards for your premarital assets are securely in place you can confidently rely upon the skill and expertise of the trust fund attorney team at V. Freitas Law, PLLC, to dot the i’s and cross all the legal t’s.
Consider Using A Trust To Protect Yourself Before A Divorce
The utility of protective trust funds can be extended to reduce your target profile against many forms of confiscatory taxation and other predatory schemes that may jeopardize your assets. We invite you to sit down with us and discuss the possibility of armoring yourself with this type of financial protection at V. Freitas Law, PLLC.
Our attorney is also at your disposal to discuss your familial circumstances in the context of setting up wills, estate planning, disposing of real estate holdings and strategic tax planning.
Dividing Vacation Property During Divorce
When the day comes that you discover you’ll be moving forth with a divorce, it is only natural that myriad things will run through your head. That said, one thing that initially escapes your train of thought could be your vacation property.
Yes, that same vacation property that hopefully you and your soon-to-be former spouse enjoyed going to on occasion. With a pending divorce, just who will get that prized possession? Our attorney can guide you in either making your claim to have at least half of the property in terms of utilizing it during the year or pursuing whatever arrangement will work best for you.
How Do Community Property Considerations Apply To Vacation Properties?
Given Washington is a community property state, note that any property gained by either spouse from start to finish of the marriage is considered community property. However, we can fight for you in hopes of making sure you do not lose out on the property that you are either fully or partially invested in. Keep in mind that the court will also take into consideration the idea of separate property that is the property that you had individually prior to becoming a husband or wife to your partner.
In order to best position yourself in terms of holding on to any vacation property you have, be sure to discuss the following with your divorce attorney:
- How ownership of the property came about – First and foremost, how did you come to end up having the vacation property in the first place? If you inherited it, it can be looked upon as something that is yours, though your marital status at the time of inheritance will be factored in too.
- Will your partner take money for their half? – If the vacation property was acquired during your marriage, consider asking your partner if they will allow you to pay them a fair amount of money so that the property is solely yours moving forward. If that is a consideration, once again, this is why an attorney in your corner is necessary.
- Sharing the property – Lastly, there is always the possibility that you will have an amicable divorce, one whereby both parties use the property at designated times. In some cases, this might be the best solution. Not only does it prevent the court from divvying up the property, but it can have a positive impact overall on your divorce proceedings.
We can help you address these and other considerations.