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How Trusts Can Protect Assets from a Divorce

Trusts play an important role in protecting assets against creditors as well as providing an efficient and tax-saving way to gift and manage assets. And depending on how they are structured, trusts can also help protect assets in case of a divorce; here's how:

If assets are placed in trust prior to marriage, they are typically treated as separate property and a future spouse would have no claim against the trust property.

In some states, assets placed in a discretionary trust are not considered to belong to the beneficiary and may not be used in calculating alimony.

Trusts can be used to protect post-divorce assets from creditors and lawsuits.

Drafted properly, a trust can help protect assets from unintended beneficiaries like an ex-spouse.

The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.

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