Divorce is rarely straightforward, and the presence of substantial trust assets often adds layers of legal and financial complexity.
In this exclusive interview with MSN.com, William “Bill” London, a founding partner of Kimura London & White LLP, answers our questions about divorce and trust litigation. With years of proven experience in estate and family law, Mr. London has become well-known for his integrity, loyalty, and responsibility, earning accolades such as “America’s Top 50 Lawyers”.
Kimura London & White LLP, based in Irvine, California, is an award-winning law firm featured in Forbes and Fortune magazines. As an Inc. 5,000 firm, they are proud to provide proven guidance in family law and trust litigation. Below, Mr. London shares his insights into navigating the challenging legal matters our readers are most interested in.
Divorce & Trust Litigation FAQ: Understanding the Basics
MSN.com: Are assets held in a trust completely protected from division in a divorce?
Bill London: Not necessarily. Trust assets can provide some protection, but their treatment during divorce depends on factors like the type of trust, how it was funded, and state-specific divorce laws. For example, revocable trusts are more likely to be considered marital property, while irrevocable trusts typically offer stronger protection.
Types of Trusts and Their Impact on Divorce
MSN.com: What is the difference between revocable and irrevocable trusts in the context of divorce?
Bill London: Revocable trusts, or living trusts, allow the creator to retain control and make changes during their lifetime. This flexibility makes them more vulnerable to division in divorce proceedings. Irrevocable trusts, on the other hand, generally remove the creator’s control over the assets, offering greater protection—unless there’s evidence of fraud or an attempt to hide marital property.
Factors Influencing Asset Division
MSN.com: What factors determine whether trust assets can be divided in a divorce?
Bill London: Key factors include when the trust was created, its purpose, how it was funded, and who benefits from it. If the trust was funded with marital property or created during the marriage, it may be subject to division. Courts also scrutinize trusts for any signs of asset shielding.
Protecting Your Interests During Divorce
MSN.com: What steps should individuals take to protect their financial interests?
Bill London: Keep detailed records of all marital and separate assets, including those in trusts. Consult both a family law attorney and an estate planning professional to structure or modify trusts appropriately. This proactive approach can help safeguard your financial future.
Alternative Dispute Resolution (ADR) for Divorce
MSN.com: Are there ways to avoid lengthy court battles?
Bill London: Absolutely. Alternative dispute resolution methods like mediation and collaborative divorce can lead to faster and more amicable outcomes. These approaches often help parties reach agreements on property division and financial matters without the delays and costs associated with litigation.
FAQs about Divorce & Trust Litigation
MSN.com: Does money in a trust get split in a divorce?
Bill London: It depends on the type of trust and the circumstances. Revocable trusts are more vulnerable, while irrevocable trusts typically offer more protection. Local laws and specific details of the case play a significant role.
MSN.com: Who loses the most in a divorce?
Bill London: There’s no one-size-fits-all answer. Financial outcomes depend on factors like the length of the marriage and whether assets were commingled. Longer marriages often involve more complex property division, making prenuptial agreements a valuable tool for asset protection.
MSN.com: Do I need a lawyer if we agree on everything?
Bill London: Yes, it’s always wise to seek independent legal counsel. A family lawyer helps ensure that agreements comply with the law and protect your interests, especially when significant assets or trusts are involved.
MSN.com: Can my ex-spouse access my trust fund?
Bill London: Courts consider various factors, including the trust’s type and purpose. Irrevocable trusts are generally protected, but exceptions exist. It’s crucial to consult an attorney to understand your specific situation.
Conclusion
MSN.com: What is the key takeaway for those navigating divorce and trust litigation?
Bill London: The process requires careful planning and the right legal expertise. Understanding the nuances of both family and trust law is crucial to protecting your financial future. Working with experienced professionals can help you navigate the complexities and achieve an outcome that respects everyone’s interests.
Disclaimer: This information is for educational purposes only and does not constitute legal advice. For personalized guidance, consult a qualified attorney.