Nearly half of all U.S. marriages—and more than half of all second marriages—end in divorce*. There are many complexities that result from these breakups, particularly when children are involved. Decisions around the funding of college and completing financial aid forms properly can create many challenges for a divorced family. And unfortunately, high-net-worth families are not immune from these concerns.
For better or worse, you’re entering a new chapter in your personal and financial life. If you weren’t the primary breadwinner in the marriage, you may have relied on your partner to handle the finances. Starting anew, many in your situation face a rude awakening when they realize their credit record and score isn’t quite what it was when they were one-half of a married couple.
This article was published in Steve Leimberg’s Estate Planning Newsletter and provides a discussion on the Ferri vs. Powell case and trusts and divorce. The Connecticut Supreme Court found that trust assets were moved out of reach of a divorcing wife through a ‘decanting process,’ but would be considered for alimony purposes. While about half the states provide statutory authority to decant, most states require that notice be given to beneficiaries.