Divorce is a challenging and emotionally taxing experience for all involved, especially when children are part of the equation.
Amidst the turmoil, ensuring the financial stability and security of your children is important. One effective way to achieve this is by establishing a trust. It safeguards assets from misuse or depletion during the divorce proceedings while ensuring your children’s needs get met.
Understanding trusts
A trust is a legal arrangement where a trustee holds assets for the benefit of specific individuals, in this case, your children. The trustee manages and distributes these assets according to the terms you establish in the trust document.
Naming a trustee
Selecting a trustworthy individual to serve as the trustee is an important decision. This person will oversee the trust and manage its assets for the benefit of your children. Choose someone with financial acumen and a genuine commitment to your children’s well-being.
Determining trust terms
Decide on the terms of the trust, including when and how asset distribution should happen. Common triggers include reaching a certain age, achieving specific milestones or in the event of unexpected financial emergencies.
Reviewing and updating
As life progresses, your circumstances may change. Periodically revisit the trust to ensure it aligns with your children’s current needs and your financial situation. Stay prepared to make necessary adjustments to the trust terms or assets.
Approximately 11.2% of adults in Georgia are divorcees, many of whom have children that are their top priority. Creating a trust for your children during a divorce can offer peace of mind and financial security during a challenging time.
