Can I trust ‘my’ Trust if my relationship breaks down?
It is generally well understood that if your relationship comes to an end your relationship property must be shared 50/50 pursuant to the Property (Relationships) Act 1976 (PRA). But, some people believe that if they transfer their assets to a Trust, then those assets will be protected. This is rarely true.There are a number of provisions available under the PRA and at common law, which would allow a Trust owned home, for example, to be included in the pool for division.
Particularly where the house was transferred to a Trust when the couple were already in a relationship (even if at the time the couple were only boyfriend and girlfriend / girlfriend and girlfriend / boyfriend and boyfriend or whatever applies). If contributions have been made from relationship property to the family trust, or contributions from the other party whether financial or non-financial, or if the Trust has provided benefit to the parties in some manner during their relationship, then the trust assets can be fair game.