If you marry someone who is 20 years younger or older than you, then you have a 95% chance of divorcing according to the Department of Economics at Emory University. As an attorney who helps folks protect their wealth I have a simple suggestion: don’t divorce. If that’s not possible, plan ahead. Those who are fortunately enough to be in their first marriage, planning may seem harsh or mean. But for those who have experienced the financial devastation that comes with a divorce, it should at least be a consideration to do some planning the next time around. Yet, giving marriage planning some consideration is about as far as it goes. It’s all just too embarrassing to actually ask for and get a prenuptial agreement.
But we can all agree on one thing: we don’t want our children to lose their inheritance to a divorce.
Because we can’t choose who our children marry, we have to face the reality that our children’s marriages might end in divorce. If that happens after we die, the inheritance and life insurance our children receive will be split with their ex-spouse. And that’s just not acceptable.
It’s so easy to stop this from happening, but almost no one knows how. It just takes a little wake-up call from me and a little caring from you. Once you know the problem and then care enough to do something about it, the rest is simple.
The solution I simply call a “Child Trust.” This isn’t a trust for little kids. It’s for your adult child who is responsible enough to manage her own assets. Once you die, the assets earmarked for her go to her Child Trust that she controls. Here’s the kicker: no one can ever take these assets from her. Not a lawsuit. Bankruptcy. IRS problem. Or divorce. This trust is so powerful not even child support claims against her can penetrate the Child Trust (I mention this to demonstrate the power of the trust–not that they should be used to avoid child support obligations).