How Are Homes in a Trust Handled in an Ohio Divorce?

When navigating a divorce in Ohio, property division is often a major concern, especially if one or both spouses have placed assets, such as a home, in a trust. The way a home is handled in a divorce depends on whether the trust is revocable or irrevocable.

Revocable Trusts in Divorce

A revocable trust allows the grantor (the person who created it) to make changes or dissolve the trust at any time. Because of this flexibility, courts typically consider homes in revocable trusts marital property if they were acquired during the marriage. In a divorce, the court may order the trust to be revoked so that the property can be divided equitably.

Key Considerations:

• If one spouse created the trust and retains control, the court can order its dissolution or modification.

• If the home was placed in the trust during the marriage, it is likely subject to equitable division.

• If the home was owned prior to the marriage and placed in the trust for estate planning purposes, it may be treated as separate property.

Irrevocable Trusts in Divorce

An irrevocable trust is more complicated because once assets are placed in it, the grantor typically cannot modify or revoke the trust. This often means that the court has limited authority to reassign the home during divorce proceedings. However, there are still important factors to consider:

Key Considerations:

• Who Created the Trust? If one spouse transferred the home into an irrevocable trust before the marriage, it may be considered separate property and not subject to division.

• Timing of the Transfer – If the home was placed in the trust during the marriage, courts may investigate whether the transfer was made in an attempt to shield assets from division.

• Trust Beneficiaries – If both spouses are named as beneficiaries, a court may determine that the trust assets should be divided accordingly.

• Fraudulent Transfers – If the trust was created to prevent a spouse from accessing the asset during divorce proceedings, a court may consider it an attempt to defraud the other spouse and could take corrective actions.

  
  

What Are Your Legal Options?

If you or your spouse have a home in a trust and are going through a divorce, it is important to work with an experienced Columbus, Ohio divorce attorney to determine how the property should be handled. Courts carefully evaluate the purpose of the trust, timing of the transfer, and control over the asset to ensure an equitable outcome.

If you need guidance on property division and trusts in divorce, contact our office today for a consultation.