Private Client weekly highlights—29 May 2025
This week’s edition of Private Client highlights includes: (1) the necessity of a DOLs order wh...
If a party to a marriage/civil partnership is a beneficiary under a trust and entitled to receive income or capital from it, that income or capital may be regarded as a financial resource of that party and be taken into account by the court. The court's approach will depend on the type of trust in question and the reasons for which it was set up. The court's ability to consider trusts assets as a resource of a party arises from the section 25(2)(a) of the Matrimonial Causes Act 1973 (MCA 1973) and paragraph 21(2)(a) of Schedule 5 Part 5 to the Civil Partnership Act 2004 (CPA 2004). A trust may also be varied if it is a nuptial settlement. In addition, there may be trusts or property law considerations within family proceedings.
There are three main methods of approaching trusts on divorce/dissolution:
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