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Trusts and Divorce

Trusts have long been used to regulate and preserve ownership of assets in order to protect them from dissipation, for the benefit of future generations.

Difficulties can arise in a divorce where one party has a beneficial interest under a discretionary trust. As he or she has no more than a right to be considered by the trustees in the exercise of their discretion, this can cause difficulties in establishing whether a trust interest is a financial resource. The beneficiary spouse is likely to argue that their trust interest is not a resource which should be taken into account on a re-distribution of the marital assets. The other spouse is likely to take a contrary position.

This is a complex area of the law which requires an understanding of how trusts work, what further information and documentation is required and the way in which they are treated by the Court.

Our divorce solictors have considerable experience of dealing with matters involving complex trusts.

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