What Happens to Trust Funds in a Divorce? Asset Protection for Georgia Families

Trust funds are a common form of asset protection for many families in Georgia. These funds are typically set up to provide financial security for beneficiaries, such as children or grandchildren, and are often established by parents or grandparents as a way to pass on wealth to future generations. However, when a couple decides to divorce, the fate of trust funds can become a contentious issue. Understanding how trust funds are treated in divorce proceedings is crucial for Georgia families looking to protect their assets during a divorce.

In Georgia, trust funds are generally considered separate property and are not subject to division in a divorce. This means that the funds held in a trust are typically not included in the marital estate and are not subject to equitable distribution. However, there are certain factors that can affect the division of trust funds in a divorce. For example, if the trust funds were commingled with marital assets or used for the benefit of the marriage, they may be considered marital property and subject to division. Additionally, if the trust was established during the marriage, the court may consider it to be a marital asset and divide it accordingly.

To protect trust funds in a divorce, there are several strategies that Georgia families can employ. One common strategy is to include a provision in the trust agreement that explicitly states that the funds are intended to be separate property and are not subject to division in the event of a divorce. Additionally, families can take steps to ensure that the trust funds are not commingled with marital assets and are used solely for the benefit of the beneficiaries. By taking these proactive measures, families can help safeguard their trust funds from being divided in a divorce.

When considering the legal implications of trust funds in a divorce, it is important for Georgia families to consult with an experienced family law attorney. An attorney can provide guidance on how to structure trust funds to protect them in the event of a divorce and can help families navigate the complexities of Georgia’s divorce laws. By working with a knowledgeable attorney, families can ensure that their trust funds are safeguarded and that their financial interests are protected during a divorce.

In conclusion, trust funds can be a valuable form of asset protection for Georgia families, but they can also become a source of contention in a divorce. By understanding how trust funds are treated in divorce proceedings, considering the factors that can affect their division, implementing strategies to protect them, and seeking legal guidance, families can take proactive steps to safeguard their trust funds and ensure their financial security. Trust funds are an important tool for passing on wealth to future generations, and by taking the necessary precautions, families can protect these assets for the benefit of their loved ones.

Written by Atlanta Divorce Law Group