Australia’s Family Law is a comprehensive statute that prescribes how to handle disputes involving matrimonial relationships, child custody and conjugal assets. It defends the rights of its members, especially the children, and supports and safeguards the sanctity, values and ideals.
A part of Australia’s Family Law is to protect the rights and best interests of family members. This includes ensuring that spouses are treated fairly in divorce proceedings and that all family members have access to the resources they need.
Going through a divorce is a stressful situation. Many issues between the ex-spouses are difficult to resolve, and factors like children or marital property may make the divorce settlement more challenging.
If you are looking for legal counsel during a difficult and stressful life event, like a divorce, the case must be handled with utmost care and professionalism. You need a trustworthy family lawyer from Madison Marcus who knows the ins and outs of the law.
Read through the article to guide you to the things that should be considered for estate planning during a divorce.
Why Does Estate Planning for Divorce Matter?
An estate plan is created to manage an individual’s assets during their lifetime and determine how those assets will be distributed after death. On the other hand, estate planning during a divorce often wants to ensure that the former spouse does not inherit any of their assets.
Through investments and insurance, estate planning offers a financial safety net so your family may carry on living as you had intended. By law, before receiving their inheritance, your beneficiaries must pay a sizable sum of taxes. Estate planning can considerably reduce this expense.
What Happens to Living Trusts in Divorce?
A living trust is created during an individual’s lifetime and designates how their assets will be distributed upon their death. If you have a living trust and get divorced, the terms of the trust may be modified or revoked by a court order. The court will consider the best interests of both parties when deciding on divorce proceedings. Consulting a divorce lawyer beforehand will make you prepared for the options laid on you.
What Are the Things You Should Consider During Estate Planning?
Estate planning is the process of designing a plan to protect your assets and loved ones in the event of your death, incapacity or divorce.
During the divorce process and prior to a property settlement
In a divorce settlement, all property acquired during the marriage is a fair game. This includes not only physical possessions but also intangible assets like stocks, bonds and retirement accounts.
Here are the following things to keep in mind:
- A living trust is a legal arrangement that allows you to hold the property for the benefit of another person. Trusts can be either revocable or irrevocable. Hence, they can be dissolved or amended by the grantor at any time.
- You may want to consider creating a trust during divorce proceedings to keep certain assets out of the reach of your spouse. However, it’s important to note that once an asset is placed in a trust, it may be difficult or impossible to get it back.
- If you have minor children, it’s especially important to create a will that appoints a guardian in the event of your passing. This ensures that your children will be taken care of by someone you trust if something happens to you.
Can You Revoke a Trust During a Divorce?
If you have a living trust during a divorce, the terms of the trust may be modified or revoked by a court order. The court will consider the best interests of both parties when deciding
divorce proceedings, however, so it’s important to speak with a divorce lawyer to understand all your options and what may be best for you.
How Do I Protect My Assets From Divorce?
There are a few things you can do to protect your assets during divorce proceedings.
Firstly, you should try to reach an agreement with your spouse on how to divide your assets. If you can’t agree, you may want to consider mediation or arbitration. These are alternatives to going to court that can help you resolve your differences without the expense and stress of a trial.
Another option is to create a prenuptial agreement. This is a legal contract that spells out how you will divide your property in the event of divorce. Prenuptial agreements are usually signed before marriage.
How Madison Marcus Can Help You
Estate planning during divorce is both complex and difficult. Also, it is crucial to have knowledgeable legal representation from the beginning to make sure your assets are safeguarded.
At Madison Marcus, our family law and estate planning experts have years of experience with divorce, child custody, alimony and beyond. These experienced divorce lawyers can help you with all aspects of divorce. For all enquiries or initial consultation, contact us here.