Trusts can add a level of complexity to divorce negotiations or court proceedings but sometimes they can be the source of a solution that enables both parties to move on with their lives.
What is a trust?
A trust is set up by a settlor and looked after and administered by trustees on behalf of the beneficiaries. It has a separate legal identity. A key feature of a trust is that neither the husband or wife, owns the assets of the trust in the way that they legally own their house, car or savings. Trustees have a duty to look after the interests of the beneficiaries so requests for capital or income may be refused if this unfairly prejudices the interests of the others.
Trusts & divorce
How trust funds are dealt with in divorce depends on the circumstances of the trust and the case. The Court has a wide discretion when deciding what should be considered and in a range of circumstances, the power to vary or rewrite the trust agreement.