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Trusts may help Massachusetts couples protect assets in divorce

For many, coming to a financial settlement during the course of a divorce proceeding can be a stressful and difficult process. However, for many Massachusetts' residents who are facing a divorce, setting up a trust may be one way to ensure that their assets are protected. These trusts, if created before the marriage, can protect certain assets if they become subject to a property settlement dispute during the course of a divorce proceeding.

One of the great benefits of a trust is that, prior to marriage, it can be created without the consent of a future spouse. Further, the trust property, if created before marriage, is considered by many states to be separate property in divorce proceedings. However, that is not true in all jurisdictions, and the right advice may help in determining the applicability and effective use of a trust in your state.

For those individuals who are the beneficiaries of a trust left to them by the estate of another, they may gather another benefit from the existence of the trust. In many states, these trust assets are not considered when determining alimony.

A Massachusetts couple about to marry may not give a lot of thought to what will happen to their assets if they get a divorce, but perhaps they should. By seeking the right advice about trust options early on, individuals could save themselves a lot of problems that may arise if a divorce is in the cards later on.

Source: Forbes, "Can a Trust Protect My Assets in Divorce?" Jeff Landers, July 18, 2012

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