In high-asset divorce cases, the complexities of wealth can extend far beyond the straightforward division of a marital home or investment accounts. When a trust is involved, it introduces a layer of intricacy that requires specialized legal and financial expertise. While family law attorneys are adept at navigating the emotional and legal intricacies of divorce, the nuances of trust law often fall outside their core practice area. This is where a strategic partnership with a fiduciary litigation firm becomes not just advantageous, but necessary to protect a client’s interests and ensure a truly equitable outcome.
“Fiduciary litigation requires a deep dive into financial records and legal obligations,” notes Adam R. Gaslowitz, a founding partner of Gaslowitz Frankel. “Asfamily law attorneys, you need a partner who can dissect these complexities,” he notes. A trust can be a powerful tool for asset protection and estate planning, but in the context of a divorce, its existence can present a significant challenge. Family law attorneys often encounter situations where an irrevocable trust holds substantial assets that were accumulated during the marriage and the opposing party claims these assets are entirely separate and untouchable. Without a clear understanding of trust law, it can be difficult to discern whether the trust is a valid, separate entity or a vehicle for improperly shielding marital property.
Uncovering the Truth Behind the Trust
The role of fiduciary litigators is to provide a comprehensive analysis of the trust instrument, its funding history, and its administration to determine if there are grounds to challenge its exclusion from the marital estate. Fiduciary litigation firms are adept at identifying potential issues, such as a breach of fiduciary duty by a trustee or a “sham trust” where the grantor maintains de facto control over the assets. One of the most critical aspects of this partnership is the ability to conduct a detailed investigation. Divorce lawyers are skilled at hiring forensic accountants to look at assets, but they may lack the expertise to know what to ask in a trust dispute.
A fiduciary litigation firm such as Gaslowitz Frankel will spot weaknesses in the trust’s structure and management that might be used to set the trust aside. They look for issues that are not immediately apparent on the face of the document. For instance, was the trust properly funded, or were marital assets transferred in a manner that could be considered a fraudulent conveyance? The legal intricacies surrounding how and when a trust was funded are a major area of litigation, and a misstep can have a significant impact on the final distribution of assets.
“We’re going to assist them in understanding what rights they may have to trust assets or family business assets, explain their options to them, and then advocate for the best position they can get,” Frankel explains. This includes participating in mediation and offering insight into how to leverage the trust’s complexities to reach a more favorable settlement. This can beespecially important in cases involving “gray divorces,” where couples in their 50s and 60s dissolve marriages involving complex, long-standing financial instruments.
Navigating Jurisdictional and Strategic Challenges
It is also important to consider the jurisdictional issues that can arise. Trusts may have been created in states with different laws than Georgia, and a Georgia court will have to address these laws and their potential impact on the case. A fiduciary law firm’s knowledge of these interstate issues allows them to strategically navigate the legal landscape and identify weaknesses or points of leverage that a family lawyer might not recognize.
When a trust is involved, the opposing side will likely try to use it as a shield, arguing that the assets are off-limits and not subject to division. Without the support of a fiduciary litigation firm, the family law attorney may find it difficult to challenge this position, potentially leading to a significant loss of assets for their client. The collaboration between a family law attorney and a fiduciary litigator creates a powerful and comprehensive legal team. It ensures that no detail is overlooked and that all avenues for asset protection and recovery are thoroughly explored.
“While litigation is sometimes unavoidable in family law cases involving complex fiduciary issues, alternative dispute resolution methods like mediation and arbitration can be particularly valuable,” notes Craig M. Frankel, a founding partner of Gaslowitz Frankel. “These approaches often allow parties to achieve more creative and mutually agreeable solutions, while also minimizing the emotional and financial costs associated with protracted court battles.” It is important to remember that achieving an equitable outcome for a client often goes beyond what is possible in a traditional litigation setting.
LeAnne M. Gilbert, an attorney who specializes in fiduciary and commercial litigation, emphasizes the importance of understanding all the options. “During business disputes, the stakes are high. Business law is incredibly complex, and without the expert counsel of business dispute lawyers, it is difficult to navigate”. This sentiment applies directly to the complexities of divorces involving family business interests, where a business law background is critical to untangling the financial intricacies of a marital estate.
The partnership between a family law attorney and a fiduciary litigator provides the family law attorney with the specialized knowledge, objective counsel, and litigation strength needed to achieve the best possible outcome for their client in even the most complex high-asset divorce cases. This collaboration provides a comprehensive approach to complex financial disputes, ensuring all legal and financial aspects are thoroughly addressed.
The attorneys of Gaslowitz Frankel have extensive experience in addressing the intricate issues inherent in will, trust, estate, business, and securities disputes. For reliable guidance in estate law and fiduciary litigation, contact the attorneys of Gaslowitz Frankel today.
