In states that follow the legal concept of community property, all the assets and debts incurred by a couple during their marriage are under shared property. Till the marriage is over, all the assets acquired during the marriage are assumed as shared assets regardless of who gains them after divorce. Alliance Law Group helps in the protection of your assets after divorce. 

In the event of divorce, the shared marital property is subjected to equitable division between the couple. The division of assets may not be equal or 50-50 but equitably. 

Separate property refers to the assets acquired before the marriage or gained during the marriage years in the form of gifts or inheritance. It also involves money recovered from claims like personal injury coverage.

Many cases involve mixed property, which refers to the assets containing marital and separate property. In case a spouse creates a retirement account before the marriage but has made contributions to it from marital funds during the active years of marriage, the retirement account will be assumed as a mixed property. It will be subjected to division in the event of divorce. 

The funds are traced back to assess how much is jointly held and how much is separately owned. 


In order to decide the outcome of trust in the event of divorce, it is assessed whether the trust comes under shared or separate property or mixed. 

The source of the funds is checked, and factors like the date of establishment, beneficiaries, and conditions of the trust are assessed to decide the trust’s outcome. Along with that, it is also examined how the funds from the trust are utilized during the marriage. 

There are various kinds of trusts, including a revocable trust,  revocable trust, spendthrift trust, special needs trust, charitable trust, etc.  Equitable distribution is done after the trust dissolution if it is decided that the trust comes under the marital property. Both parties are provided with their shares of the trust funds. 

Trusts And Prenuptial Agreement

In many instances, trust funds are not subjected to call property distribution in the event of divorce. This is because of the clauses of a prenuptial or premarital agreement. Prenups are signed before the marriage. They entail handling trust funds and other financial aspects of the married couple in case of a divorce. Both spouses formally sign the prenuptial agreement, which is legally binding. 

However, mentioning trust funds in the pre-marital or post-marital agreements does not consolidate protection in the event of divorce. Therefore you should consult an attorney regarding your situation to protect your assets. They help in proving that your trust comes under separate property and defend your prenup on your behalf. 

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