How An Offshore Asset Protection Trust Can Help In A Divorce

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A common way of protecting assets during marriage, is by using a prenuptial agreement.

It’s a highly emotional issue discussing this topic, especially if you have gone through a divorce and have managed to keep a few dollars after a sole crushing process, and you are planning on getting married again.

An asset protection trust has a few clear advantages in case of a divorce, compared to a prenup agreement. Using an offshore trust is more effective, it won’t destroy the relationship, and your assets won’t be vulnerable to a domestic judge.

Offshore Asset Protection Trust Divorce

In the event you are sued by your ex-spouse, it will be almost impossible for anyone to reach your assets, if the trust is located offshore. There are two reasons why that’s the case. First of all no country will automatically enforce the laws of another country. Only in exceptional circumstances can that happen, but then you do at least have some kind of trial. And if your trust if formed in a foreign jurisdiction, the laws governing the trust are different, and in a lot of cases won’t recognize a spouse as being entitled to anything the trust owns.

Prenups destroy trust. If you declare your love for someone, acknowledging that person as the one who matters most to you in the world, and then throw an agreement in that person’s face, which says in case you get a divorce, they are not entitled to anything of what you are supposed to own together.

On the other hand with a trust, you don’t need to declare anything. You can even add your spouse as a beneficiary of the trust to stay on good terms, and at the same time have the right to refuse that person from any entitlement.

A prenuptial agreement is for the most part a good idea. Usually they work, but sometimes they don’t. But one thing you can always guarantee with such an agreement, is to destroy the trusting relationship between you and your spouse. Asking for a pre-nup is the same as admitting that you don’t trust your loved one. It can be a good idea, but ruins the trust between you. Prenups don’t establish good relationships. In a lot of cases, even suggesting it puts a strain on your relationship.

Your spouse might not feel quite as loved. The marriage in some ways becomes a lot colder, feeling that you can’t fully rely on each other.

It’s different if you are both mature, but we are all human beings, with emotions that aren’t always rational.

Having a properly structured offshore trust in place is essential. You don’t even have to show it to your future spouse, or you can keep her included as a beneficiary, which you can change or remove at any time anyway.

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Fredrik helps high net worth individuals with creating international asset protection strategies. To keep anything from currency, real estate, precious metals and any other kind of investment protected from an unexpected lawsuit.