divorce

I often get asked what happens to the assets of a trust in the event of a divorce, especially if the spouses are both trustees. The first thing to fully understand is that the assets are owned by the trust (or its company) and not one of the spouses getting divorced. The other spouse can be thought of as a potential creditor trying to break through the firewall protecting the trust assets. His or her attorneys will, (because this is what they learned at University and is about all they know about trusts), try to prove that the trust is…