Working hard to ensure financial stability and comfort can often take years. Unfortunately, a divorce can often wipe out years of that work. However, there are some steps Colorado residents might consider to help mitigate one’s losses.
The phrase that many may think of when they hear the term trusts may be inheritance taxes. However, trusts can be used in a variety of ways that might help insulate some assets when a divorce is unavoidable. These financial planning tools may be crafted in a way that ensures that holdings can pass directly on to one’s heirs. There are also types of trusts that can enable the owner to retain control of a business while also granting a chosen individual the ability to make pertinent decisions.
In addition, if one wants to prevent a former spouse from being awarded a business after a marriage dissolution, and yet there is no immediate heir that desires to run the company, then a directed trust might work best. These tools enable the owner to appoint someone to manage the running of the enterprise while the family still benefits from the proceeds of ownership. This type of trust is one way of ensuring that the ownership of a company is separate from the day-to-day operations.
Each and every situation is different, and only a qualified professional can provide the correct information for one’s particular needs and circumstances. However, when one is contemplating a divorce, it may be helpful to know that there may be ways to protect certain assets. In addition to important financial planning, Colorado residents may seek the knowledge and experience of an attorney who specializes in high asset divorces in order to have the most complete picture of what post-divorce life may look like so one can plan accordingly.
Source: wealthmanagement.com, “Planning For Protection and Control“, David H. Lenok, Jan. 27, 2017