Offshore Trusts, Onshore Divorces

This article first appeared in issue 37 of ThoughtLeaders4 HNW Divorce magazine.

We have all seen the newspaper articles where a divorcing spouse (or in some cases a willing family member ) is accused of 'hiding' money in an offshore trust to avoid including those funds as part of the financial provision on divorce.

Trusts have long been used by settlors looking to ring-fence their property, whether that be as part of a tax planning strategy, or to shield it from the claim of another. Many offshore jurisdictions (including Guernsey) have built up their offerings in trust services, and will often be one of the first places that people will turn to when looking to establish a trust.