Sometimes, but it depends entirely on the type of trust, who created it, and how it was funded. A trust someone else set up for you, like an inheritance held in an irrevocable trust, can protect those assets from divorce in Florida if you keep them separate. A trust you create for your own benefit usually cannot, because Florida law lets a creditor, including a divorcing spouse, reach a self-settled trust under Fla. Stat. Section 736.0505. And a revocable living trust gives no divorce protection at all, since you still control it.
This is one of the most misunderstood areas of Florida divorce. People hear that a trust can “divorce-proof” their money and set one up expecting a shield that Florida law does not actually provide. Knowing which trusts work, which fail, and why will save you from an expensive mistake.
At Justin Andersson, P.A., we help clients across Panama City, Bay County, and the Northwest Florida panhandle understand how trusts hold up in a divorce. Getting the structure right, long before any divorce, is what makes the difference.
Does a Trust Protect Assets From Divorce in Florida?
A trust can protect assets from divorce only when it is the right type, set up by the right person, at the right time. The single biggest factor is whether you created the trust for yourself or someone else created it for you.
Florida treats these two situations very differently. A third-party trust, meaning one another person funded for your benefit, can keep those assets out of your divorce if they stay separate. A self-settled trust, one you create and fund for your own benefit, generally cannot, because Florida law lets your creditors reach it.
Timing and the funding source matter just as much. A trust funded with marital money, or created once a divorce is on the horizon, offers little protection, because a court can treat it as a transfer meant to defeat the other spouse’s rights. How property is divided in Florida still governs anything the trust does not validly shield.
Which Types of Trusts Protect Assets, and Which Do Not?
Not all trusts are equal in a divorce, and the differences are large. The table below shows how the main types hold up in a Florida divorce and why.
| Type of Trust | Divorce Protection | Why |
|---|---|---|
| Revocable living trust | None | You control it, so the assets stay yours |
| Self-settled irrevocable trust | Usually none | Florida lets a creditor spouse reach it (Sec. 736.0505) |
| Third-party irrevocable trust (e.g. inheritance) | Strong, if kept separate | Not yours to control; stays non-marital |
| Trust funded with marital money | Weak, challengeable | Can be undone as a fraudulent transfer |
| Trust created right before divorce | Very weak | Treated as a move to defeat the other spouse |
As the table shows, control is the deciding factor. The more control you keep over the assets, the less protection the trust provides, because Florida law follows the money back to whoever truly controls it.
Why Do Self-Settled Trusts Fail in Florida?
Self-settled trusts fail in Florida because the state has no law allowing them to shield assets from your own creditors. Under Fla. Stat. Section 736.0505, if you create a trust and name yourself a beneficiary, a creditor can reach the most the trust could pay you, and a divorcing spouse counts as a creditor here.
Florida has simply never adopted a domestic asset protection trust statute. Many people read online about self-settled trusts that protect assets and assume Florida allows them, but it does not, and spendthrift or discretionary language in the trust does not change that result.
It gets worse if the trust was funded with marital money. In that case a court can unwind the transfer as a fraudulent transfer under Chapter 726 and can count the move against you as dissipation of marital assets. Trying to hide money in a self-settled trust often leaves you worse off than doing nothing.
When Can a Trust Actually Protect Your Assets?
A trust protects your assets best when someone else created and funded it for you, it is irrevocable, and you do not control it. This is the classic protected trust, such as an inheritance a parent leaves you in a properly drafted irrevocable trust.
Three features make a third-party trust strong. The person who set it up is not you, the trust cannot be revoked and raided at will, and an independent trustee, not you, decides on distributions. When all three are present, the assets are not legally yours to divide, so they usually stay outside the divorce.
Keeping it separate is essential. Even a well-built trust can lose its protection if you pour the distributions into a joint account or use them to buy marital property. Protecting an inheritance works the same way, which is why how an inheritance is treated in a Florida divorce comes down to keeping it cleanly apart from marital finances.
Can Trust Income Still Count Toward Alimony or Child Support?
Yes, even when the trust assets are protected, the income you receive from a trust can still count toward alimony and child support. A protected trust keeps the principal out of the division, but it does not hide the money from the court entirely.
Judges look at your real financial resources. If you receive regular distributions from a trust, a judge can treat that income as part of your ability to pay support, or as a resource that reduces your need for it. How judges calculate alimony in Florida includes the income available to each spouse, and the same is true for child support, so trust distributions are part of that picture.
So a trust is not a way to appear broke. The assets inside a valid third-party trust may be safe from division, but the benefit you actually receive from it is fair game when the court sets support.
Should You Use a Trust, a Prenup, or Both?
For most couples, a prenuptial agreement or postnuptial agreement is a clearer and more reliable way to protect assets in a Florida divorce than a self-settled trust. A trust and an agreement do different jobs, and they often work best together.
An agreement directly decides what happens in a divorce. A prenup or postnuptial agreement lets you state in advance that certain property stays separate, which Florida courts enforce when the agreement is valid. For protecting what you bring into a marriage, this is usually the strongest and simplest tool.
Trusts fit specific situations, too. A third-party trust is ideal for keeping an inheritance or a family gift protected, and a prenup can then confirm that protection in writing. In a high-asset divorce, the two are often combined, with a trust holding the assets and an agreement spelling out how they are treated.
What Mistakes Do People Make With Trusts and Divorce?
The biggest mistake is believing a self-settled trust will shield your money, when Florida law says it will not. People move assets into a trust they control and assume they are protected, only to watch a court reach right through it.
A few errors come up again and again:
- Creating a self-settled trust and expecting it to beat a divorce
- Moving marital money into a trust once divorce looks likely
- Letting trust distributions mix into joint marital accounts
- Relying on a revocable living trust, which protects nothing
- Hiding a trust instead of disclosing it, which backfires badly
Honesty and early planning beat every shortcut. A trust set up years in advance, by the right person, and kept separate can protect real wealth, while a last-minute move almost always fails in the property division process and damages your credibility with the judge.
Frequently Asked Questions
Usually not if you create and control the trust. Florida lets a divorcing spouse reach a self-settled trust under Section 736.0505, and funding one with marital money as divorce nears can be undone as a fraudulent transfer.
No. A revocable trust gives no divorce protection because you keep full control and can revoke it, so the court treats the assets as yours and available for division.
Yes, usually. An inheritance held in a properly drafted irrevocable third-party trust can stay protected, as long as you do not mix the distributions into marital accounts or property.
It can. Even if the trust principal is protected, regular distributions you receive may be counted as income when a court decides alimony or child support.
Often, yes. A prenuptial or postnuptial agreement directly controls what happens in a divorce and is usually simpler and more reliable than a self-settled trust, though a third-party trust and an agreement can work well together.
Talk to a Florida Family Attorney About Trusts and Divorce
A trust can protect real wealth in a divorce, but only the right kind, set up the right way, well before any trouble. The wrong trust, or one created too late, offers no protection and can hurt your case. Justin Andersson, P.A. helps clients across Panama City and Bay County understand what their trust will and will not do, and plan around it.