How can I safeguard my wealth amid a marital dispute?

livemint.com:

—Name withheld on request Though not fool proof, a prevalent practice adopted to prevent value erosion on account of formal separation is via a trust structure. As an effective tool of succession planning along with asset management and protection, a quintessential trust structure would entail setting up of an irrevocable discretionary trust with independent professional trustee(s) with beneficiaries being family members including future lineal descendants. The underlying rationale being by transferring assets into the trust, the same are excluded from being considered part of personal net worth during divorce settlements.

A hygiene check would be to ensure that family members do not exercise direct control over the functioning of the trust. Spouses, either are excluded in entirety from the trust benefits or are excluded from the list of beneficiaries on happening of certain pre-specified events mentioned in the trust deed say divorce proceedings. Trust deed, which governs the functioning of the trust, may also provide for periodic pay-outs for the health, education, maintenance, marriage etc.

of children. A key consideration in determining the favourable outcome of the whole arrangement is the timing of setting up of the trust structure. It is advisable to set up and transfer the assets well in advance of any marital issues, to avoid suspicion of malafide intentions.