That’s an interesting question as the answer covers a few areas of law.
From a general legal view point, there is no reason why this could not be done. However, a few potential issues come to mind that you’d need to consider further.
1 I’m not a family lawyer so am not able to tell you the answer to this, but you need to check that what you are suggesting is actually possible within your divorce financial arrangements;
2 I’m also not a benefits expert so am not able to tell you the answer to this, but you need to check that agreeing not to take assets from the divorce would not be viewed to be deliberate deprivation of assets for means tested benefits purposes; and
3 You would need to consider carefully what the Trust looks like. If it is to benefit you and your children then it would need to be a Discretionary Trust. If that’s the case, there are tax implications that would need to be considered when setting it up and for the ongoing administration of it. It is fine to buy a property within a Discretionary Trust if the Trustees decide that this is an appropriate investment to hold.
I’m sorry that it’s not as straight forward an answer as you might have hoped for, but it’s very important that you check everything carefully before entering into this type of arrangement.