Monday, June 23, 2014
The issue of whether an ex-spouse can make a claim against marital property held in a Domestic Asset Protection Trust (DAPT) creates a conflict between creditor protection and fairness to the ex-spouse considerations. South Dakota has changed its DAPT statutes to try to balance the conflicting interests. Now, if a spouse moves marital property into a DAPT in South Dakota, the spouse must be notified of the transfer. The notice must include various information and warnings to the spouse including that the funds are being transferred, that if the couple divorces access to the funds could be hampered, and how to object to the transfer.
See Heath Oberloh, South Dakota Asset Protection Trust Legislation, Wealth Counsel, April 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.