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Are Trusts Divided in an Illinois Divorce?

 Posted on March 08, 2024 in Divorce

IL divorce lawyerA common divorce topic is that of the division of marital assets that needs to be carried out within the framework of a divorce settlement. Things that are generally included under the category of marital assets include joint bank accounts, properties that the couple accumulated, and investments that the couple contributed to throughout their marriage. If a trust was created by or on behalf of either spouse during their marriage, this would also be included as something to be divided in a divorce. If there is a trust in your or your spouse’s name and you want to understand how it will be handled in an upcoming divorce, speak with a Kendall County, IL asset division attorney to find out more.

What Is a Trust?

There are different types of trusts, and they can be worth different values, but a trust is essentially a legal entity created to hold and maintain assets placed in it on behalf of named beneficiaries. Before proceeding, you need to determine how the trust in question is classified, meaning whether it is considered a marital or nonmarital asset. This is generally determined based on when it was established, but a knowledgeable attorney can review the specifics of your trust and help you proceed.

If the trust is considered a marital asset, it will be subject to an equitable distribution of assets under Illinois law. Like all other marital assets, it does not need to be divided equally but rather fairly. The courts consider several factors when deciding what would be a fair division and here, too, a trustworthy lawyer will be of utmost help in explaining the intricacies to you.

Each trust will have what is known as a certificate of trust, which generally includes provisions about how the assets contained in the trust are to be distributed should the marriage be dissolved or ended in some other way. These provisions need to be followed carefully.

Certain factors would not necessarily be addressed in the certificate of trust, for example, if this generates income for either spouse and therefore impacts spousal support decisions. Additionally, the trust might be subject to modification or termination if the court decides that this would be in the best interest of the parties involved and of fulfilling the terms of a divorce settlement.

Schedule a Free Consultation with a Wheaton, IL Asset Division Lawyer

Trusts can be a complicated issue in the division of assets that comes with a divorce. If you are nearing or past retirement age, it can seem even more pressing, as you may have planned your retirement around it. If this is an issue of concern for you, contact a reliable DuPage County, IL divorce attorney. Call Divorce Over 50 - Goostree Law Group at 630-634-5050 to schedule a free consultation.

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