When a Kentucky couple goes through a divorce, marital assets are divided based on state law. Depending on how a trust is written, it is possible that a spouse could lay a claim to assets inside of a trust created by the family of the other spouse. One way to prevent this is to create clear language that those assets are not to be considered marital property or used to calculate alimony.
This may help protect an individual against a spouse who wishes to lay claim to as much cash or other assets as possible in a divorce order. However, the terms of a trust could actual allow for a beneficiary’s parents to continue supporting a former spouse after a divorce is final. This may occur if the parties have a good relationship with each other or if they were not at fault for how the relationship ended.
In most cases, the language of a trust will be upheld if it isn’t illegal or have terms that go against the public interest. While a trust may not account for all situations, it should account for as many as an individual can think of. It should also have contingencies built into it in case something does happen that no one anticipated ahead of time.
Those who are about to go through the divorce process may wish to talk with an attorney. It may be possible to review trusts or other third-party assets to determine if they are marital property or likely to be deemed separate property. In the event that a couple has a prenuptial agreement, it may determine how to divide marital assets assuming that it is valid.