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Divorce Protection Provisions

What is it?

These provisions work with spendthrift clauses to ensure trust assets are not considered marital property in a beneficiary's divorce. By keeping assets in trust (rather than distributing outright) and making clear that beneficiaries have no right to demand distributions, the assets remain protected from divorce claims.

Why is it important?

In many states, inherited assets can become marital property if commingled or if the inheriting spouse has significant control. Trust-based inheritance with proper provisions keeps assets separate and protected. This is one of the most valuable benefits of leaving assets in trust rather than outright to beneficiaries.

Example Language

Assets held in this Trust for any beneficiary shall not be considered marital or community property of such beneficiary. The beneficiary's interest is a discretionary interest only, with no right to compel distributions. In any divorce proceeding, the Trustee shall suspend distributions to the divorcing beneficiary until the divorce is final and shall not make any distribution that could be subject to division or attachment.