28 May What Happens to My Child’s Trust in a Divorce?
Going through a divorce comes with a lot of questions. One of the biggest questions parents ask is: “What happens to my child’s trust?” If a trust was set up for your child before or during the marriage, it’s important to understand how it might be affected during divorce.
At Navarrette Family Law, we’re here to help families like yours protect what matters most. Let’s walk through what you need to know.
What Is a Trust for a Child?
A trust is a legal way to manage money or property for someone, like your child. Many parents or grandparents set up trusts to help with future education, and medical needs, or to pass down family wealth. A trust has a trustee (the person who manages the trust) and a beneficiary (your child).
Does the Trust Belong to the Child?
Yes. If the trust is irrevocable, meaning it can’t be changed or canceled easily, and the money or assets are truly meant for your child, it is generally not considered marital property. That means it is usually not divided during a divorce.
However, if a parent is a trustee or if the funds have been used for family expenses, the court may take a closer look. If the trust is revocable and controlled by one or both parents, it might be seen as a financial resource and discussed in divorce negotiations.
Will the Trust Affect Child Support?
Maybe. Courts look at each parent’s ability to pay when calculating child support. If a parent receives money from a child’s trust or can access the trust’s assets, it could impact support decisions. Still, the child’s trust itself is usually not counted as income for the parents.
What Should You Do to Protect It?
If your child has a trust in place, you should:
- Talk to your attorney about how the trust was created
- Keep good records of how the trust funds are used
- Make sure the trust clearly states it belongs to the child
- Consider using a neutral third-party trustee
To get a full picture of what to expect in your divorce, read our post on How to Prepare for Your First Divorce Consultation.
Your child’s future is worth protecting. At Navarrette Family Law, we help parents understand their rights and make smart choices during divorce. If your child has a trust or you’re thinking about setting one up, we’re here to help you navigate the process. Request counsel from our firm today.