Should You Get a Prenup If You Have a Trust Fund?
Published on: 24 Mar 2025
If you have a trust fund, you likely already understand the importance of long-term financial planning. Whether your trust was set up by family to protect generational wealth, or you're the beneficiary of a trust you’ve built yourself, marriage introduces new considerations—especially around how that trust could be impacted by divorce.
One of the most effective ways to safeguard your trust fund is by creating a prenuptial agreement. A prenup allows you to clearly define what happens to your trust assets in the event of divorce, ensuring they stay protected and separate from marital property.
In this guide, we’ll explore why having a trust fund makes a prenup even more important, how trusts are treated in divorce, and what a prenup can do to protect your financial future.
1. What Is a Trust Fund and Why It Matters in Marriage
A trust fund is a legal arrangement in which assets—such as money, property, or investments—are held by a trustee for the benefit of a beneficiary. Trusts can be established for many reasons, including:
- Preserving family wealth
- Reducing estate taxes
- Providing financial support over time
- Protecting assets from creditors or legal claims
If you’re a beneficiary of a trust, those assets were likely set aside to protect your long-term financial security—not to be divided in a divorce. But without a prenuptial agreement, things can get complicated.
2. Are Trust Funds Safe From Division in Divorce?
The answer depends on several factors, including:
2.1. When the Trust Was Created
- Before the marriage: It’s more likely to be considered separate property, especially if structured correctly.
- During the marriage: It may be viewed as marital property depending on how it’s funded and used.
2.2. How the Trust Was Used
- If you used distributions from the trust to support joint expenses, invest in marital property, or commingle funds with your spouse, the trust—or at least its appreciation—could be subject to division.
2.3. Whether You Have a Prenup
- A prenup can clearly state that the trust fund remains separate, even if distributions are used during the marriage.
Bottom line: even if your trust is meant to be protected, the way you handle it—and whether you have a prenup—can make all the difference.
3. How a Prenup Can Protect Your Trust Fund
3.1. Define the Trust as Separate Property
Your prenup can include specific language that:
- Identifies the trust fund as your separate property
- States that distributions from the trust remain separate
- Clarifies that any appreciation in value will not be divided
This avoids ambiguity and protects you from potential legal disputes.
3.2. Protect Future Distributions
Some trusts provide scheduled or discretionary payouts. A prenup can address:
- Whether distributions will be shared or remain with the beneficiary
- Whether income from the trust will be considered part of spousal support calculations
- Whether reinvested distributions remain separate
3.3. Address Commingling and Joint Use
A prenup can set clear boundaries around:
- Using trust funds for joint purchases (e.g. buying a home together)
- Making sure co-owned assets are defined separately from trust-funded assets
- Reimbursing the trust or trust beneficiary if joint benefits were provided
4. Common Scenarios Where a Trust Fund Needs Protection
Scenario 1: Inheritance Trust
Morgan is set to receive a multi-million-dollar inheritance through a trust once they turn 35. Their prenup ensures the trust—and all future distributions—remain separate, even if used to purchase a marital home.
Scenario 2: Family Business in a Trust
Eli’s parents placed ownership of the family business in a trust to protect it from legal issues. Eli’s prenup states that the business remains protected, and that profits from the trust used during the marriage won’t create a claim for shared ownership.
Scenario 3: Educational Support Trust
Jamie has a trust that helps pay for postgraduate education. Their prenup clarifies that the trust remains Jamie’s separate property and is not to be factored into alimony or asset division.
5. What to Include in Your Prenup if You Have a Trust Fund
If you have a trust, your prenup should address:
- The name and nature of the trust
- When the trust was established and by whom
- Whether you are the sole beneficiary or if others are involved
- How current or future distributions will be handled
- Whether any commingled funds or joint purchases should be reimbursed or protected
- Whether the trust should be excluded from spousal support or alimony considerations
Work with a financial advisor or estate planner (if needed) to ensure the prenup aligns with the trust’s terms.
6. Common Misconceptions
“The Trust Is Protected No Matter What”
Not always. If you commingle funds, fail to document use, or if your state has complex marital property laws, even trust assets could be dragged into a divorce settlement.
“A Prenup Is Only for People Getting Married Young”
In fact, the more assets you have, the more you need a prenup—especially if you're entering marriage with wealth, a trust fund, or long-term financial responsibilities.
“My Family Trust Is Off-Limits”
Even if your family trust was established with protection in mind, your behavior during marriage can change that. A prenup adds a legal layer of defense that aligns with the trust’s intent.
7. How prenups.ai Makes It Easy
At prenups.ai, we’ve designed a platform that helps you create a prenuptial agreement that’s legally sound and tailored to your unique financial situation—including trust funds and estate planning.
Why trust fund beneficiaries choose prenups.ai:
- ✅ Step-by-step guidance for declaring separate assets
- ✅ Custom clauses for trust distributions and income
- ✅ Affordable, fast, and private
- ✅ State-specific legal compliance
Whether you're protecting family wealth, inherited assets, or a trust set up for your future, prenups.ai makes it simple to build a strong foundation for your marriage.
8. Final Thoughts
If you have a trust fund, protecting it with a prenuptial agreement is not just smart—it’s essential. A prenup gives you peace of mind, defines financial expectations, and ensures that your assets remain intact for the future you or your family planned.
📌 Start your prenuptial agreement today at prenups.ai and safeguard your trust fund with confidence.