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To Trust Or Not To Trust –

No, we are not talking about whether you trust your husband or wife! A Trust is an arrangement, defined by law, where an individual or a group of people are made responsible for assets for the benefit of another person or group of people.

So what happens if it is known or discovered within divorce proceedings that there is a Trust asset that is a potential resource of either spouse or their children? First of all it would be essential to discover whether the Trust had been set up by a spouse to try and defeat a financial claim of the other spouse. These types of Trusts are known as “Sham Trusts” and can be set aside by the family courts.

Trusts may be based off-shore and are often sophisticated structures but the Courts are very familiar with them nowadays and as one eminent Family Judge said recently, “They neither impress, intimidate, nor fool anyone. The Courts have lived with them for years”.

However, the law relating to Trusts can be complex and it is essential at the outset of your divorce to establish the validity or other wise of any Trust so that any difficulties or issues can be identified at an early stage. It is therefore crucial to seek legal advice as soon as possible.

Monday, October 28th, 2013 Divorce, Marriage Breakdown

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