I am about to get a divorce and I am the trustee of our family trust. Can I move money from the family trust into separate trust accounts set up for the benefit of our children? Will this prevent that money from being considered property of the marriage for family law purposes?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by LegalEagle™ staff, Melbourne 3000 VIC
- No. Generally speaking you cannot do this.
- Recent court decisions have found that actions that seek to alter someone’s rights under a trust can be set aside by the courts.
- The assets of the trust will be considered your property in family law proceedings as you have control over the trust.