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What Happens to My Living Trust If I Get a Divorce?

Feb. 19, 2024

In the midst of a divorce, individuals with a living trust may have concerns about the fate of their trust and its assets. Understanding the implications of a living trust in the event of a divorce is crucial for safeguarding one's assets and planning for the future.

Impact of Revocable living trust’s on Divorce Settlement

If a revocable living trust is considered marital property, it can still significantly impact the divorce settlement. The assets held within the trust may be subject to equitable division during the divorce proceedings, influencing the allocation of assets between the divorcing spouses.

Treatment of Assets Transferred Into Trust During Marriage

As a general rule, if assets were transferred into an irrevocable trust during the marriage, they are typically no longer considered marital or community property. This distinction can have implications for the division of assets during divorce, potentially safeguarding those assets from being subject to equitable division.

Tracing of Trust Assets

In the context of a divorce action, the non-beneficiary spouse may have the opportunity to trace the source of the assets in the trust to determine their classification as marital or separate property. This tracing process can have significant implications for the treatment of trust assets during the divorce proceedings.

Potential Division of Trust Assets

In certain cases, particularly involving revocable living trusts, couples may choose to dissolve the trust during the divorce and evenly distribute its contents. The flexibility of revocable trusts allows for modifications, including dissolution, which can impact the final distribution of trust assets in the event of a divorce.

Consideration for Post-Divorce Asset Distribution

It's essential to consider the potential impact of divorce on the distribution of trust assets post-divorce. Trustees should review and update their trust documents to reflect their preferences regarding the distribution of trust assets in light of the divorce, ensuring that their intentions are clearly outlined.


In conclusion, the fate of a living trust in the event of a divorce can be impacted by various legal considerations, including the classification of trust assets, their treatment during divorce proceedings, and the potential for post-divorce asset distribution. Understanding these factors and seeking legal counsel are essential steps for safeguarding the assets held within the trust and ensuring that they are appropriately managed in the event of a divorce.

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