Q: What happens with a family trust in a divorce? We own a house together, cars and joint bank accounts.
We each have life insurance policies, IRA’s, traditional Roth and 401k. All named in our Trust. I have kids (18+) from a previous marriage.
A:
As this is not a settled matter in Nevada, it will come down to deciding if the property that was placed in the trust was and will be considered community property or separate property. Putting assets in a trust does not automatically make the assets separate property. The source of the assets will need to be traced to determine their designation and decide whether they are subject to equitable distribution.
I recommend you speak to an attorney to get further information on this matter.
Janice Jacovino agrees with this answer
A: I agree with the other attorney's answer. Most of the time the Court will "break the trust" especially if the trust is revokable and for estate planning purposes. One the court decides if it will break the trust then it will decided on the designation of the property ( separate or community or mixed) based on the facts of the case.
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