Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.
Divorce is never simple. Often the things that are most meaningful for spouses, whether it is a shared business or a community mission, can be difficult to let go. Sometimes it’s better to move on, but for many couples, there may be a wish to continue a commitment to giving back after divorce. If you are facing divorce and wondering whether
you can continue your charitable mission together, the answer is: yes—but it requires thoughtful planning and negotiation.
If you want to continue your charitable mission together, a non-adversarial divorce process like divorce mediation will help you to find the best way to make this work for you. If you are facing into a divorce and you have charitable commitments with your divorcing spouse, contact Divorce Options San Diego Mediation and Law Firm today to arrange a consultation with our West Coast Divorce Mediators.
Charitable Donations and the Marital Estate
One key thing to understand is that charitable donations don’t always disappear from consideration just because the assets were removed from the marital estate. Once donated to a qualified nonprofit, assets are irrevocably dedicated to charitable purposes, and family courts generally have limited jurisdiction over nonprofit governance. However even if funds have been donated to a charitable organization or placed in a donor-advised fund, spouses often still have some influence, such as acting as advisers or directors. Charitable donations can also have tax implications in the form of tax deductions. If you and your spouse co-manage a donor-advised fund or foundation, for example, you must decide how to move forward.
What Are Your Options for Shared Charitable Foundations?
If you and your spouse established a charitable foundation together, you have a few paths you can consider:
Continuing the Foundation Together
If both of you remain committed to the mission, you can agree to co-manage the foundation with clear governance rules to maintain professional boundaries and minimize conflict. Mediation is a good option for navigating whatever decision you may make, as conflict in divorce can impact relationships with donors and even create reputational damage that could impact the foundation’s mission.
Restructuring the Foundation
One spouse can take over operations while the other steps away, allowing the foundations work to continue without personal entanglement.
Dissolving the Foundation
If neither party wishes to continue, you can wind down the organization. This requires careful considerations of how to comply with legal and tax obligations to dissolve a nonprofit properly.
Mediation: The Best Path to Collaborative Solutions
Because charitable donations are not part of the marital estate, courts have limited authority to dictate how nonprofit foundations are managed, and mediation is often the most effective way to resolve issues related to charitable giving and shared philanthropic missions.
Mediation provides:
– A structured, confidential environment to discuss
– Opportunities to preserve the shared values that led to your philanthropic endeavors in the first place
– Flexible agreements tailored to your unique situation
Continuing Your Charitable Mission After Divorce
If you decide to continue your charitable mission after divorce, it’s important to put in place arrangements that are respectful and manage your ongoing relationship, for example:
Establishing separate donor-advised funds or private foundations to pursue individual charitable priorities
Equitably allocating charitable tax deductions
Agreeing on how existing or future charitable contributions impact spousal support and property division
Get a Consultation with Our Experienced Team of West Coast Divorce Mediators
Divorce doesn’t have to mean the end of your shared commitment to making a difference. With the right support, you can honor your values while transitioning into your new life. If you and your spouse are considering divorce and have charitable giving commitments, Divorce Options San Diego Mediation and Law Firm can guide you through this process. Our experienced high level divorce mediators help couples find creative, respectful solutions that protect their
philanthropic goals and minimize conflict. We have offices in San Diego, CA and Silicon Valley, and Orange County, and can mediate with you remotely at your convenience. Contact us today for a no-strings consultation to help you move forward with a respectful divorce.
