Navigating divorce is challenging — especially when trusts are involved. At Hobson & Hobson, P.C., we understand the complexities of trust and divorce cases in Georgia. Our experience in high-asset divorces, combined with our innovative, client-centric approach, ensures your financial interests and family legacy are protected.
Understanding Trusts in Divorce: Georgia Law
When considering what happens to a trust in a divorce, it’s crucial to understand how Georgia law distinguishes between marital and separate property. Trusts can be a focal point in divorce proceedings, particularly in high-asset or complex family situations.
Are Trusts Considered Marital Property?
In Georgia, the classification of trust assets in divorce depends on several factors:
- Trusts established during the marriage are typically considered marital property and may be subject to equitable division.
- Trusts funded with marital assets — even if created before marriage — can lose their “separate” status if commingled with marital funds.
- Premarital or inherited trusts may remain separate property if kept strictly apart from marital finances.
Georgia courts scrutinize the origin and management of trust assets. If you’re asking, “Can I put my house in a trust before divorce?” — the answer is nuanced. If the house is marital property, transferring it to a trust may not shield it from division unless done transparently and for legitimate estate planning reasons.
Types of Trusts and Their Impact in Divorce
Living Trust and Divorce
A revocable living trust is a popular estate planning tool. But what happens to a living trust in a divorce? In Georgia:
- Revocable trusts can be altered or dissolved by the grantor. If created during marriage with marital assets, they’re often considered marital property.
- Irrevocable trusts generally offer more protection, as the grantor relinquishes control. Assets in an irrevocable trust may be excluded from the marital estate, depending on their origin and terms.
If you’re concerned about what happens to a revocable trust in a divorce, it’s important to know that Georgia law does not automatically revoke your ex-spouse’s interest. You must take proactive steps to update beneficiaries and trustees post-divorce.
Family Trust and Divorce
Family trusts, often used to manage generational wealth, can become a point of contention in divorce. Whether a family trust is divided depends on:
- The timing of its creation (before or during marriage)
- The source of its funding (separate or marital assets)
- The terms of the trust and the degree of control retained by the parties
Our attorneys at Hobson & Hobson are skilled in dissecting these details to ensure your interests are protected.
Recent Developments in Georgia Divorce Law
Georgia’s family law landscape is evolving. As of 2025:
- Financial disclosure requirements are stricter, demanding comprehensive transparency of income, assets, and debts.
- Mediation is increasingly recommended or required, aiming to reduce the emotional and financial toll of litigation.
- Child custody decisions now place even greater emphasis on the best interests of the child, which can affect trust distributions intended for minors.
For more on Georgia’s divorce process, visit the Georgia Department of Human Services.
Protecting Trust Assets in Divorce
If you’re considering divorce and have significant trust assets, proactive planning is essential:
- Keep premarital and inherited assets separate. Mixing them with marital funds can convert them into marital property.
- Consider prenuptial or postnuptial agreements. These can clarify the treatment of trust assets in divorce.
- Consult with experienced counsel. Our team at Hobson & Hobson leverages advanced technology and litigation training to safeguard your interests.
Common Mistakes to Avoid
- Transferring marital assets into a trust without proper documentation or disclosure can be seen as an attempt to hide assets, leading to legal complications.
- Failing to update trust documents post-divorce can result in unintended distributions to an ex-spouse.
Trusts and Creditors: What You Need to Know
Georgia is considered “pro-creditor.” This means:
- Trust assets may not be fully shielded from claims for child support or alimony, even if they’re technically separate property.
- A former spouse can be treated as a creditor if owed support, and courts may order distributions from a trust to satisfy these obligations.
For more on asset protection and creditor rights, see Nolo’s guide to asset protection.
High-Asset Divorce: Trusts and Complex Estates
High-net-worth individuals often use trusts for privacy and asset management. However, in a divorce:
- Detailed financial disclosures are required, and hidden or undisclosed trust assets can lead to severe legal penalties.
- Expert valuation of trust assets may be necessary, especially for business interests or real estate held in trust.
Our attorneys have over 30 years of combined experience handling high-asset divorces and contentious custody disputes. We use cutting-edge technology to organize and present complex financial information efficiently.
Professional Advice: Protecting Your Interests
As family law experts, we recommend:
- Early consultation: If you have a trust or are considering creating one, speak with a family law attorney before making any changes.
- Transparency: Full disclosure of all assets, including trusts, is not only required by law but also builds credibility with the court.
- Ongoing review: Trust and estate plans should be revisited after major life events, including divorce.
For more on the intersection of trusts and divorce, visit the American Bar Association’s Family Law Section.
Frequently Asked Questions
What happens to a trust in a divorce in Georgia?
It depends on the type of trust, when it was created, and how it was funded. Trusts created during marriage with marital assets are generally subject to division. Separate property trusts may be protected if kept distinct.
Are trusts considered marital property?
Trusts can be considered marital property if funded with marital assets or created during the marriage. Separate property trusts, such as those funded before marriage or by inheritance, may be excluded if not commingled.
Can I put my house in a trust before divorce?
Placing a house in a trust before divorce does not automatically protect it from division if it is marital property. Courts will examine the intent and timing of the transfer.
What happens to a living trust in a divorce?
A revocable living trust can be altered by the grantor. If created during marriage, it may be divided. If you wish to remove your ex-spouse as a beneficiary, you must update the trust documents.
What happens to a revocable trust in a divorce?
Georgia law does not automatically revoke your ex-spouse’s interest in a revocable trust. You must take action to change beneficiaries and trustees after divorce.
How can I protect trust assets in divorce?
Keep separate assets distinct, consider prenuptial agreements, and consult with experienced legal counsel. Transparency and proper documentation are key.
Why Choose Hobson & Hobson, P.C.?
- Over 30 years of combined experience in divorce and custody cases
- Special litigation training for efficient, effective outcomes
- Client-focused, empathetic approach balanced with aggressive advocacy
- Five convenient office locations across Atlanta and North Georgia
- Cutting-edge technology for seamless, organized legal solutions
We are committed to helping you make the best legal decisions during challenging times. Whether your case involves a family trust, living trust, or complex asset division, our team is prepared to guide you every step of the way.
For more information or to schedule a consultation, visit Hobson & Hobson, P.C..
References:
- Georgia Department of Human Services
- Nolo: Asset Protection
- American Bar Association: Family Law
- FindLaw: Divorce and Trusts
- Hobson & Hobson, P.C.
Attorney Sarah Hobson at Hobson and Hobson, P.C. are powerful advocates for those who fight for better futures for those going through divorce and custody law matters.