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Trusts can be an area of contention in a Texas divorce

Houston residents who are in the process of a divorce know how complicated all of the issues can be. Property division is one of the most contentious areas of a divorce and needs to be handled carefully and thoroughly. Property division includes all of the obvious items such as houses, land, vacation homes, bank accounts, stocks, and other tangible assets. Other assets such as an art collection or business are more difficult to divide and may require professional valuation.

A third-party trust can also be a contentious issue in a divorce. Third-party trusts are usually created for the benefit of specific beneficiaries by their parents, grandparents or other family members. Trusts often states they are for the beneficiary's health, education, maintenance and support. But if a divorce situation is not specifically mentioned in the trust, and one of the beneficiaries gets divorced, the assets in the trust may be considered marital property.

To protect a spouse who is a trust beneficiary from having the trust affected by a divorce, a prenuptial or postnuptial agreement can be a big help. The funds from the trust should also not be commingled and the trust should clearly state that it cannot be touched by creditors or an ex-spouse.

A family law attorney can help make sure a person who is going through a divorce comes out of it in sound financial condition. High asset divorces are typically very complicated and a fair settlement is necessary to maintain a spouse's standard of living. An experienced attorney knows how to negotiate these settlements and can make sure no assets are overlooked.

Source: forbes.com, "What divorcing women need to know about protecting third-party trusts", Jeff Landers, Oct. 8, 2015

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Attorney Christine K. Lincoln

Christine K. Lincoln offers sound counsel and legal services to protect clients and their families facing divorce and other family disputes.

She will take the time to understand your individual needs and develop a comprehensive solution to protect your rights and interests.

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