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Navigating trusts and estate plans in high-asset divorces

On Behalf of The Law Office of John Heilbrun | Jun 27, 2024 | High-Asset Divorce |

Divorces with significant assets bring unique challenges, especially when trusts are involved. In Ohio, laws govern how to divide assets during divorce. Both parties must understand how trusts fit into this framework.

Understanding trusts in divorce

Trusts are legal arrangements where a trustee holds assets for beneficiaries. They can be set up during one’s lifetime (living trusts) or upon death (testamentary trusts) to manage and protect assets. In divorce, trusts add complexity. Assets within them might not count as marital assets subject to property division.

Determining trust ownership

Ohio law divides assets into marital or separate property. Assets in a trust from before marriage or received as an inheritance count as separate property. These assets are not subject to division. If marital funds mix with trust assets or the trust allows beneficiary control, courts may see these assets differently.

Valuing trust assets

Valuing trust assets accurately is crucial. Trusts can hold various assets, such as real estate, investments, or business interests. A forensic accountant or financial expert can assess their value to ensure fair division in divorce proceedings.

Negotiating equitable division

Equitable division doesn’t always mean equal division but what’s fair under the circumstances. Negotiating the division of trust assets involves understanding their characteristics, contributions during marriage, and legal implications. Settlements may include using different assets or scheduling payments over time.

Seeking legal and financial guidance

Given the complexities, both spouses should consult experienced legal and financial advisors. Specialists in high-asset divorce and estate planning can offer you strategic advice. While financial experts can help value and divide trust assets.

This process requires careful attention to legal and financial details. Thorough preparation and professional guidance can lead to a smoother resolution in these complex situations.