Dealing with a divorce in Idaho becomes emotional and challenging. Due to the coronavirus hit, many weddings have been put on hold whereas couples are still rethinking their relationships and getting a divorce. People are more concerned about their financial arrangements after the divorce. In 2019, the number of divorces was 746,971 in the U.S.A.
Parents have shifted their focus from providing financial assistance to their adult children for a fear of losing that money in a divorce. Anxious parents are often interested to know whether their family wealth for their children and grandchildren will go to their estranged son or daughter-in-law. In that case, they can delay the divorce process. Inheritance, gifts, and advancements are treated differently by courts from those assets and investments made during the marriage. However, several proactive measures can be taken by the parents to help preserve the wealth that is intended for the family.
Prenuptial Agreements & Divorces in Idaho:
Any contributions done by parents in terms of family wealth for their children are often protected by a prenuptial agreement. In a divorce in Idaho, a prenuptial agreement is essential to protect any asset or inheritance from division. If you are married, you can enter into a postnuptial agreement that has the same purpose as a prenuptial agreement.
If you plan to protect contributions to an adult child’s finances, a properly drawn loan agreement is beneficial for you. When the money is advanced, a repayment clause should be set in writing in case the parent expects repayment at a certain point. During a divorce in Idaho, it would be easier to convince the judge that contributions made for a deposit on a family home from one partner’s parents were a loan intended to be repaid rather than a gift. Show a clear agreement that is signed, including the purpose of the loan and terms of repayment.
The most effective technique to preserve wealth for children and grandchildren during divorce in Idaho is setting up a trust. There are several reasons for setting up a trust. It will allow control and protection of the assets when the individual is too young to manage them. While the giver is alive assets can be passed on through a trust. The trustees are the owners of assets held in a trust. They complete the wishes of the giver. The trustees could be professionals, colleagues, family members, or friends. Most trusts are discretionary. The trustees decide on what each beneficiary will be receiving and at what terms.
The family court can question the trust in several ways. The court can identify if the trust establishes of ‘nuptial settlement’ meaning a connection between marriage and the settlement exists. Or it could mean provision to one or both parents to a marriage with or without provision for children. An order to vary the trust can be made by the court if this is found.
The validity of your trust can also be challenged in court. This could be caused if the court finds an issue with the technicalities of its creation or decides that the trust is a sham. A sham trust is not intended to be a trust. It is commonly determined a sham as the settlor retains control of trust thus undermining the duties and power of the trustees. In this situation, the protection of assets at the trust is at risk of being lost.
Letter of wishes must be carefully created with the professional help of an attorney. The court can see the trust as a financial resource belonging to one party. This is a common way to attack trust assets during a divorce in Idaho. It is complicated to protect against this attack. Professional assistance and attention at the trust’s beginning and its lifetime can help you in defending trust assets. You should always carefully plan and establish a detailed defense in place to ensure the trust effectively protects your assets.
Get in Touch With an Experienced Attorney:
A divorce in Idaho brings along difficulties for both parties. It is essential to look out at all options and understand their impact on your divorce case. Hiring a professional divorce attorney can help you in strengthening your case. We have years of experience in handling similar cases. We ensure the appropriate protection of your assets. Our legal advice is personalized according to the sensitivity of your case. If you or someone you know is going through a divorce, get in touch to ease the legal matters.