Chicago Divorce Lawyer for Division of Trusts

Attorneys Assisting With Dividing Estates and Inheritances in Cook County and DuPage County

During your divorce, there are a wide variety of financial concerns that may affect you and your family. Inheritances, trusts, and estates are important to your and your loved ones' ongoing financial security, and determining how these assets should be divided between you and your spouse may be a complex matter. When you need to address complicated financial assets and determine how to protect family wealth, you should work with an experienced legal professional.

The attorneys of Weiss-Kunz & Oliver, LLC have helped numerous clients address complex divorce issues, and we are prepared to strongly advocate for your financial interests throughout the divorce process. Whether you are able to resolve your outstanding issues through negotiation or need to litigate your divorce in court, we can provide you with the representation you need to help you achieve a favorable outcome to your case.

Divorce and Inheritances

During a divorce, a couple's marital property should be divided fairly and equitably. Marital property includes all property and assets acquired by either spouse after the couple's marriage and before their legal separation. However, one exception to this is property acquired through inheritance. If one spouse inherited certain assets, those assets are usually considered separate property that is not subject to division.

It is important to note that when property obtained through inheritance is commingled with other property owned by one or both spouses, it may be converted to marital property. For example, if one spouse inherited money and used it to make a down payment on the couple's marital home, and the family went on to live in the home for several years before the spouses decided to divorce, the amount put toward the down payment may no longer be considered separate property.

Addressing Trusts During Divorce

Assets that are placed in a trust can be difficult to sort out during divorce, since they are considered to be owned by the trust rather than by either spouse. If a trust was created by one spouse prior to the marriage, it will likely be considered separate property. If a trust was created by either or both spouses during the marriage, determining how it will be handled will depend on whether it is revocable or irrevocable.

If a trust is revocable, any terms of the trust that pertain to the settlor's spouse will be revoked upon divorce, unless the terms of the trust state otherwise. For example, if a person created a revocable living trust and named their spouse as a successor trustee in the event of their death, those terms would be revoked upon divorce. However, if the spouses created the trust together, the trust would likely be considered a marital asset that will need to be divided during divorce.

If a couple created an irrevocable trust during their marriage, the trust will typically not be affected by their divorce. For example, if assets in an irrevocable trust are placed in the control of a trustee with instructions to distribute the assets to beneficiaries such as children or other family members, the divorce of the settlor will not affect this distribution, unless the terms of the trust state otherwise.

If either spouse is the beneficiary of a trust created by another person, such as a family member, the assets in the trust will typically not be part of the marital estate, because they would be treated as an inheritance and considered separate property. However, if the spouse received regular distributions from the trust during the couple's marriage, these distributions may be considered as part of the income earned by that spouse. Since this income will be part of the financial resources available to a spouse, it may be taken into consideration when making decisions about the division of marital property, eligibility for spousal maintenance, and child support calculations.

Contact an Elmhurst Asset Division Attorney

Because trusts, inheritances, and other related issues can greatly complicate a divorce case, it is crucial to work with an experienced attorney when addressing these issues. At Weiss-Kunz & Oliver, LLC, we will ensure that you consider all aspects of your situation, and we will help you negotiate a settlement that protects your financial interests in the years following your divorce. Contact our office today by calling 312-605-4041. We represent divorcing spouses in Park Ridge, Elmhurst, Lincolnwood, Chicago, Burr Ridge, Hinsdale, Oak Brook, Skokie, and throughout all of Cook County and DuPage County.