What is an invalid or sham trust? ================================= If a divorce involves a trust, a spouse may argue that the trust is invalid or a sham, or that the placement of assets made by the other spouse into the trust should be reversed. Trusts are invalid if they fail to comply with any one of a number of formal requirements, such as if the settlor fails to sign the trust instrument. If a trust is invalid then the trustees will hold the trust assets on a new trust for the benefit of the settlor. However, a spouse arguing that a trust is invalid must think ahead: if the settlor is not the other spouse then the trust assets would be placed beyond the court's reach on divorce. Even if a trust appears to be valid, a spouse can argue that the trust is a sham. A trust is a sham if it is established by its purported settlor and trustees without the intention of actually creating a trust, but instead for the purpose of creating the appearance of a trust without the ensuing legal obligations. It is, however, notoriously difficult to successfully argue that a trust is a sham. Finally, a spouse can apply to reverse the placement of assets into a trust by the other spouse. This type of application can only be made where the placement has been made to defeat the other spouse's financial claim on divorce and, if the placement of assets were set aside, the financial award made on that claim would be different. A spouse facing a divorce involving a trust should consider whether any of the routes set out above should be pursued, both in the early stages and throughout proceedings. We offer a free consultation to [qualifying individuals](https://vardags.com/vardags-clients/ "https://vardags.com/vardags-clients/") for divorce. Please call our confidential enquiry line on 020 7788 7151 or [email us](https://vardags.com/contact "https://vardags.com/contact"). Lines are staffed 24 hours. **If you're considering or going through a divorce, click below for a free initial consultation with one of our expert divorce solicitors.** [BOOK FREE CONSULTATION](https://vardags.com/contact "BOOK FREE CONSULTATION") About Us -------- Ayesha VardagFounder & President "A DIVORCE LAWYER WIDELY REGARDED AS ONE OF THE WORLD'S BEST" The Metro Vardags offer a unique approach to the law, specially tailored to the needs of HNW individuals. We offer City-quality representation for your divorce and family law needs. Our lawyers come from the very best universities and receive the very best training - they are determined, diligent, and dedicated to getting the best outcome... [read more](https://vardags.com/about-us) [BOOK FREE CONSULTATION](https://vardags.com/contact)