Divorce may require revoking, updating, or creating separate Trusts, depending on whether joint or individual Trusts were signed and funded. Both spouses may need to confirm changes. Because transferring assets and revising beneficiaries can be legally complex, consult an attorney and contact Member Support for guidance.
Getting divorced can affect your Trust, and what you'll need to do depends on your situation. This article covers the basics, but since these steps can have legal consequences, we recommend consulting an attorney. We're not a law firm, so we can't provide legal advice, but our Attorney Services can connect you with an attorney if you'd like legal guidance.
Did You and Your Spouse Create a Joint Trust?
If you created one joint Trust together, what happens next depends on whether it's been signed and funded (meaning assets were transferred into it).
If your joint Trust was signed and funded:
- You can revoke your joint Trust. We do not offer revocation forms, but a revocation form may be available online.
- You and your ex-spouse may need to work together to transfer assets out of the old joint Trust, first into your individual names, and then into new separate Trusts once you've each created one.
- You might want to create a new, separate Trust & Will account to build your own individual Trust.
If your joint Trust has NOT been signed or funded yet:
You have two options:
- One spouse can keep the current account, update their marital status to Divorced and convert their plan to an individual Trust, while the other spouse starts a new account.
- Or, you can both start fresh with new, separate accounts. This is usually the simpler option.
Either way, we'll need confirmation from both spouses before making changes to a shared account.
Did You and Your Spouse Create Two Separate Trusts in One Account?
In separate property states, some couples create two individual Trusts within one shared account. If these Trusts haven't been signed or funded, you can either split the account (one spouse starts a new account while the other keeps the current one and updates their marital status) or have both spouses start fresh with new accounts.
If your separate Trusts have already been signed and funded, both spouses will likely need to revoke or restate their Trusts, since you'll each need to update your marital status and possibly your beneficiaries, successor trustees, and other details.
A Few Things to Keep in Mind
- Trust revocation and moving assets can be legally complex, so we always recommend speaking with an attorney.
- If you've created a new estate plan, it may be a good idea to shred any old documents from your previous Trust to avoid confusion down the road.
If you have questions about your specific situation, please reach out to our friendly Member Support team. We're happy to walk you through your options.