Wilson Whitaker Rynell

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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
wilson whitaker rynell attorneys and counselors at law logo
972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN

Trusts in Divorce in Texas

ATTORNEYS IN DALLAS

Inherited trusts are considered separate property of the beneficiary spouse and such assets are not subject to division in divorce.

Trusts in Divorce

Individuals with substantial wealth often establish trusts to safeguard their assets for future generations. Trusts not only assist in evading tax liabilities but also provide a shield against division of assets in the event of a divorce for the settlor or beneficiary. However, trusts may not always safeguard assets in case of a divorce. Therefore, it is wise for anyone contemplating a divorce to consult with legal counsel about the potential effects of a divorce on any trust related to the individual or their spouse.

Texas Law and Property Division in Divorces

Texas follows the community property law, which mandates the division of all community property in the event of a divorce. Community property generally refers to any property that either spouse acquires during their marriage, except for certain items such as damages awarded in personal injury cases, gifts and inheritances, and property that remains separate property due to a prenuptial agreement. Community property is jointly owned by both spouses, whereas separate property is owned by only one spouse. Typically, separate property includes assets owned by either spouse before marriage, including trusts. However, in certain cases, a portion or all of the income from a trust may be classified as community property, leading to a just and equitable division by the court during a divorce.

Revocable and Irrevocable Trusts in Texas Divorces

The determination of whether property in a trust or trust proceeds are community property is generally dependent on the trust's creation date, the nature of the property placed into it, and the trust's terms. For instance, if an irrevocable trust was established by a settlor before marriage and a spouse is named as a beneficiary without the right to possess trust assets, the trust assets are likely considered separate property. However, if the irrevocable trust was created after marriage, the community or separate property designation depends on whether one or both spouses are beneficiaries.

In Texas, regardless of whether trust assets are considered community property in a divorce, income received by a spouse from an irrevocable trust may be considered community property. Whether income from a trust is deemed community property depends on factors such as whether the beneficiary has a current or future right to the trust's assets and whether the beneficiary has exercised that right. A divorce attorney can help determine whether the trust income is community property.

Another issue arises when dividing trust property in a divorce where one spouse creates a trust for the benefit of a third party during the marriage. If the trust is revocable, and marital assets fund it, the trust's assets will likely be deemed community property because the settlor retains the right to cancel or amend the trust.

Speak with an Experienced Divorce Attorney

Dividing property can be a complex task when individuals with significant wealth go through a divorce. If you or your spouse have a trust that you created or benefit from, it's advisable to seek legal counsel to understand the possible financial ramifications of the divorce. At Wilson Whitaker Rynell, we are dedicated to assisting you in achieving a beneficial asset division outcome. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.

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In order to best prepare yourself during the divorce process, it is vital that you have a qualified divorce attorney by your side. Our divorce law firm is dedicated to providing knowledgeable, professional, and effective legal counsel for all types of family and divorce matters. When you work with our experienced Dallas family law attorneys, you can trust that we will have your best interests in mind.

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By Leigh Whitaker January 28, 2025
Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. For one, they often have experience working on issues that disproportionately affect women in divorce such as spousal support (alimony), child custody disputes, and asset division. Additionally, female divorce lawyers offer a unique level of empathy, understanding, and communication. As a result, many clients feel that they are more approachable and compassionate, which is beneficial when dealing with the emotional turmoil of the process. More importantly, female divorce attorneys are more familiar with how the court treats women in divorce cases and use this knowledge to strategically protect their clients’ interests, whether male or female. Why Our Female Divorce Attorneys May be Right for You At Wilson Whitaker Rynell, our female divorce attorneys are skilled, knowledgeable professionals, they also have many years of experience in handling complex divorce cases. Whether it’s issues surrounding custody of children, alimony, or asset division, our female divorce lawyers ensure each client receives high-quality legal advice. Our firm’s female divorce attorneys provide the highest level of personal attention, ensuring that each client’s unique needs and concerns are addressed through every step. Unique Challenges Women Face in Family Law Disputes in Texas Family law disputes can be emotionally charged and legally complex, especially for women navigating the process in Texas. Women often encounter unique challenges due to their roles in the marriage and family dynamic, particularly when it comes to child custody, child support, and the division of marital assets. Child Custody Challenges In many marriages, women take on the primary caregiving role for their children. However, when it comes to custody decisions, courts in Texas prioritize the best interests of the child over parental gender. While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. Additionally, women who sacrificed their careers to support their spouses or raise children may feel disadvantaged during the division of assets if their earning potential is limited compared to their ex-spouse. How Your Divorce Attorney Will Support You Each divorce case is unique, and having an experienced attorney standing by you is vital. Whether you’re dividing assets, negotiating child custody, or managing other complex legal issues, the female divorce attorneys at Wilson Whitaker Rynell are here to protect the interests of you and your family. Our attorneys will take the time to understand your unique circumstances and empower you to make informed decisions that support your career, family and future. When you choose a female divorce attorney from Wilson Whitaker Rynell, you can trust that they will: Prioritize your family’s best interests. Negotiate with integrity, ensuring fairness and transparency. Clearly explain all your options and their potential outcomes. Help you create the future you want by offering trusted legal advice. Use efficient methods to minimize unnecessary costs and keep the process manageable. Navigating family law disputes requires a thorough understanding of Texas family law and strong advocacy. Women facing divorce or other family law issues are encouraged to seek an experienced family law attorney who can provide personalized guidance. A skilled lawyer can help craft a strategy that protects their rights and ensures a fair resolution. This includes representing their interests in court, negotiating settlements, and helping enforce orders such as child support or spousal maintenance.
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