Trusts and divorce
Trusts can be used for very many different purposes, they can arise expressly or inadvertently, and they may be established by written deed or created by someone’s conduct.
The position of trusts in relation to divorce is complicated. Generally speaking, a trust can protect assets should someone divorce, and it is difficult even in extremely high value cases to include trust assets within a divorce settlement.
A High Court Judge has recently made a decision that further emphasises this.
In Joy v Joy-Morancho, the Judge confirmed that a trust established before a couple began their relationship cannot be treated as a nuptial settlement, thus taking it further beyond the reach of the divorce courts. This decision overturned a previous Court ruling from 2014.
Nick Palmer is a solicitor in our Private Clients team.