When a marriage ends, property division can be one of the most contentious and legally complex aspects of the divorce process—especially when trust assets are involved.
At The Betz Law Firm, we often receive questions from parents and grandparents concerned about how to protect a child’s trust from being divided or accessed during a divorce.
Trust assets are generally considered separate property and should remain protected from division during divorce. However, the reality isn’t always straightforward. Missouri courts follow equitable distribution laws, meaning they divide marital property fairly but not necessarily equally.
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1. Document the Trust’s Origins – Gather all original trust documents, including:
2. Avoid Commingling – Never mix trust funds with marital assets. This includes:
3. Review Trustee Arrangements – If your spouse serves as a co-trustee, consider:
4. Update Beneficiary Designations – Review and update:
Q: Can my ex-spouse claim trust assets established by my parents for our children?
A: Generally, no, if the trust was properly established and maintained as separate property. However, the court may consider trust income when calculating support obligations.
Q: What happens if I used trust money to pay for family expenses during our marriage?
A: This commingling may compromise the trust’s protected status. However, proper documentation and legal arguments may still preserve some protection.
Q: Should I modify the trust terms during divorce proceedings?
A: Trust modifications during divorce require careful consideration and should only be done with experienced legal counsel to avoid unintended consequences.
Q: How do trust assets affect child support calculations in Missouri?
A: While trust principal typically isn’t considered income, regular distributions to benefit the child may affect support calculations.
Divorce is challenging enough without worrying about your children’s financial security. By understanding how Missouri law treats trust assets and taking proactive steps to maintain proper separation, you can preserve these critical resources for your children’s future needs.
Trust asset protection during divorce requires a delicate balance of legal knowledge, strategic planning, and meticulous documentation. The stakes are too high to navigate this process alone.
Protecting trust assets during divorce requires careful legal strategy and thorough documentation. At The Betz Law Firm, we understand how Missouri courts handle complex financial arrangements involving children’s trust assets. Our approach includes:
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