How to Divorce-Proof Your Finances
A good trust will have built-in protections for your children and your entire family. An experienced, competent attorney will make sure that the trusts contains an inheritance trust for your son or your daughter, so it’s divorce-proof.
When you pass away, the funds go to your son and daughter, and if your son or daughter gets
a divorce, their spouse cannot touch it. So, the trust allows you to control from the grave, so to speak, to protect from the grave the finances of your children and grandchildren.
A simple will or any other estate planning instrument is normally not capable of offering this type of protection. When used correctly, a living trust will ensure that money stays in the family and won’t be taken by outsiders, even in the case of divorce.
Let’s say a couple is worth 5 million dollars. If the wife dies first, the husband gets everything. Say, hypothetically, that the husband marries someone brand new and the new wife takes everything upon his death. That’s probably not what his wife and his children would want.
To avoid this situation, we can build the trust to stipulate that upon the death of the first spouse -- let’s say the wife dies first -- we can put her half, her 50% into a special trust, so it is guaranteed for her kids.
The bottom line is, if you want to protect your family and divorce-proof your and your children’s finances, you must have a trust in place. And the best time to get a trust is before you pass away. So, unless you know your death date, the best time to contact an experienced attorney is right now.
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