Peter Rayney considers the extent to which trust assets are protected on a divorce.
Professional advisers are often asked whether trusts offer an effective form of protection against claims arising on divorce.
In England and Wales, a divorcing party can apply for a lump sum, a property adjustment, a pension order, or a periodical adjustment (i.e. maintenance).
The court must make an application that is fair having regard to the factors set out in Matrimonial Causes Act 1973 (‘the Act’), s 25. When determining financial remedies, the courts must consider each spouse’s current financial resources and those that they are likely to have in the foreseeable future. The extent to which assets held in a trust are regarded as available to the beneficiary - and therefore considered in their divorce settlement – will depend on the precise
