The Divorce Protection Trust
Before we begin
Some terms you will need to know:
1. Assets — Real or Personal Property, whether tangible or intangible, that has financial value and can be used for the payment of its owner’s debts.
2. Inheritance — Property received from a decedent, either by will or through state laws of intestate succession, where the decedent has failed to execute a valid will.
3. Community Property — The holdings and resources owned in common by a Husband and Wife.
4. Divorce — A court decree that terminates a marriage; also known as marital dissolution.
Why The Divorce Protection Trust Is So Important
You love your children.
You want what is best for them.
The reason you set up a living trust in the first place is to protect your assets FOR them.
The last thing you want to see happen is for everything you worked hard for, everything you have taken steps to protect, for your children, to get tangled up and lost in a divorce.
How would that happen? By mixing their inheritance with the marriage assets (homes, stocks, etc.).
Now that everything is mixed together, what was intended for your child only, is now a part of the marriage assets. In other words, their spouse has some of your child’s inheritance.
In California there are laws that interpret the “mixing” of assets to be community property. During a divorce settlement, community property is divided 50–50 between the divorcing parties, no matter who contributed what to those assets.
Adding a Divorce Protection Trust to the provisions of your family trust.
The DPT holds all of the assets that will be passed on to your children. After you and your spouse pass away, beneficiaries (your children) will be able to access their inheritance, with the proper precautions, and allow them to be divorce proof!
This solution can work for ANY beneficiary you like. Sisters and brothers? Nieces and nephews? Anyone you think would benefit with a divorce protection trust. And let’s be honest, with the divorce rate as high as it is, that is practically everyone.
If you have any questions please visit my website, watch my videos on other topics, or call me directly.
I am here to help.