The Hillam v. Hillam case, decided on July 18, 2024, by the Utah Court of Appeals, addresses significant issues in divorce proceedings. It particularly focuses on the division of marital assets held in an irrevocable trust and allegations of asset dissipation. This case underscores the complexities of asset distribution in divorce and the importance of thorough legal representation.
Case Overview
John and Tara Hillam were married in 2000, and John filed for divorce in 2017. During their marriage, John placed significant marital assets, specifically Maverik, Inc. stock options, into an irrevocable trust. The court had to decide whether these assets could be divided as part of the divorce proceedings and if John had dissipated marital assets by creating the trust.
Key Issues and Rulings
Irrevocable Trust and Asset Division
- The court ruled that the assets John placed in the trust were marital property but could not be divided in the divorce due to the nature of the irrevocable trust.
- The trust was deemed valid and enforceable under Nevada law, and since John had renounced his rights as both settlor and beneficiary, the assets were no longer his to claim.
Allegations of Asset Dissipation
- Tara claimed John dissipated marital assets by placing them in the trust.
- The court analyzed this claim using five factors from Rayner v. Rayner and ultimately remanded the issue for further consideration due to errors in the lower court’s analysis.
Stock Payouts
- The court concluded there was no abuse of discretion in not awarding Tara half of a stock payout John received after filing for divorce, as these funds had already been accounted for as income in previous proceedings.
Implications for Future Divorce Cases
The Hillam v. Hillam decision highlights the necessity of understanding the legal complexities surrounding trusts and asset dissipation in divorce cases. It demonstrates that assets placed in an irrevocable trust may not be subject to division, emphasizing the importance of strategic financial planning and clear legal agreements in marriage.
Call to Action
Navigating divorce and the division of marital assets can be incredibly complex, especially when trusts are involved. If you are facing a divorce and need expert legal advice to protect your interests, contact the Ellsworth Law Firm today. Our experienced Utah Family Law attorney is dedicated to providing personalized and strategic representation to help you achieve the best possible outcome.
