Divorces bring many challenges to families going through the process, whether it be emotional or financial. There is a solution to ease the financial burdens that divorces pose. Divorce Trusts have many advantages, including some inadvertent benefits that you may not realize. How can you use a Divorce Trust to ensure the best life for your family when times are tough?
- Divorce Trusts can protect assets for children of divorcing spouses
- Divorce Trusts are created by a divorcing couple
- Divorce Trusts can help alleviate stress and expense caused by divorce
The Consequences of Divorce
Divorce is a long, hard process that takes a toll on everybody involved. The emotional strain that it can cause is insurmountable, and the last thing anyone in a divorce wants to worry about is sticky, contentious matters like separation of assets. Children with parents who are divorced are at risk to perform badly in school. Also, they’re more likely to get held back a year, have high dropout rates, and have lower rates of college graduation than children with married parents. The stress that the divorce process can put on the children can result in unintended consequences, but can be mitigated by proper planning.
What Is A Divorce Trust?
A Divorce Trust is an irrevocable trust created to aid in divorce proceedings. It is intended to simplify the separation of property. You and your soon-to-be-ex-spouse can establish a trust in which you place assets for the benefit and use of your children for things such as future education expenses with total assurance that neither ex-spouse can access the money.
How Divorce Trust Can Help
Divorce Trusts can:
- Protect assets for the sole benefit of the children of divorcing spouses
- Protect access to assets from both ex-spouses
- Be established without a court order
- Be created without an attorney
- Protect important assets from untrusted individuals
- Simplify and minimize the financial repercussions of divorce
- Create a spendthrift trust in an ending relationship to make regularly scheduled payments to an ex-spouse with poor spending habits.
- 3rd-party trustees ensure that commitments are kept and reduce contact with ex-spouse.
- Prevent unauthorized use of the assets by either party
- Set aside money for children's college as a part of the settlement
- Be a useful tool in arbitration
- Be affordable with services such as Kiss Trust from Eastern Point Trust Company