Discretionary Trusts in a Divorce with Mackenzie Ralstin | Episode 240

Trusts are often described as “bulletproof” in divorce—but that assumption can be misleading. In this episode of Divorce at Altitude, co-host Ryan Kalamaya is joined by associate attorney Makenzie Ralston to discuss how discretionary trusts are treated in a Colorado divorce.

Ryan and McKenzie explain when a trust may truly be protected, when it can be considered property, and when it may still affect property division, spousal maintenance, or child support—even if it is not divisible. Using common divorce scenarios and Colorado case law, they break down how trust language, trustee discretion, and distribution history can dramatically impact divorce outcomes.

Guest Information: McKenzie Ralston

McKenzie Ralston is an associate attorney at Kalamaya | Goscha with a background in estate planning and tax law. She earned her law degree and Master of Laws in Taxation from the University of Denver Sturm College of Law and focuses on the intersection of trusts, estate planning, and domestic relations.

Episode Outline

What Is a Discretionary Trust?

An overview of trust roles—settlor, trustee, and beneficiary—and how discretionary distribution standards such as health, education, maintenance, and support operate.

Revocable vs. Irrevocable Trusts

Why revocable trusts generally are not property interests for beneficiaries, how irrevocable trusts differ, and when a trust may become relevant in divorce proceedings.

Colorado Case Law on Trusts

A discussion of In re Marriage of Jones and In re Marriage of Balanson, and how courts analyze enforceable rights versus discretionary interests.

Economic Circumstances vs. Property

How a trust may not be property—but still influence property division as an economic circumstance in a divorce.

Trustee Control and Distribution Patterns

Why consistent distributions, beneficiary control, and trustee appointment powers can undermine claims that a trust is fully discretionary.

Trust Distributions as Income

How regular and dependable trust distributions may be included as gross income for spousal maintenance and child support calculations.

Drafting Trusts With Divorce in Mind

How thoughtful trust drafting—spendthrift provisions, independent trustees, divorce-triggered protections, and prenuptial requirements—can prov

What is Divorce at Altitude?

Ryan Kalamaya and Amy Goscha provide tips and recommendations on issues related to divorce, separation, and co-parenting in Colorado. Ryan and Amy are the founding partners of an innovative and ambitious law firm, Kalamaya | Goscha, that pushes the boundaries to discover new frontiers in family law, personal injuries, and criminal defense in Colorado.

To subscribe to Divorce at Altitude, click here and select your favorite podcast player. To subscribe to Kalamaya | Goscha's YouTube channel where many of the episodes will be posted as videos, click here. If you have additional questions or would like to speak to one of our attorneys, give us a call at 970-429-5784 or email us at info@kalamaya.law.

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DISCLAIMER: THE COMMENTARY AND OPINIONS ON THIS PODCAST IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE. CONTACT AN ATTORNEY IN YOUR STATE OR AREA TO OBTAIN LEGAL ADVICE ON ANY OF THESE ISSUES.