Trust planning can be used to achieve similar goals as a post-nuptial agreement and can be challenged as such
Trust planning can be used to achieve similar goals as a post-nuptial agreement and can be challenged as such. For example, husband sets up an estate plan in which wife transfers valuable marital assets to a trust to benefit husband. Even if this is purportedly (or even actually) done to avoid estate tax, save income tax, protect assets or other valid goals, it may severely hinder the wife if there is a later divorce. But that type of planning may be the equivalent to achieving the goals of a post-nuptial agreement. A post-nup is a contract made during the course of the marriage, that affects how assets will be distributed if there is a later divorce. Post-nuptial agreements are subject to specific rules which vary by state but may require that the agreement be fair, all financial information be disclosed, and that each spouse is represented by an attorney. If a trust plan is used to circumvent these requirements it may be possible to challenge the trust as a disguised prenup, or a prenup called a trust.
