Hi guys… just wondering if anyone can give me some advice on protecting your assets (a new Business or shares) before a divorce is about to proceed.
Is it best to set up a trust of some kind? (sorry, not very knowledgable on the nitty-gritty of trusts) or perhaps she’ll have to let the business go to someone else and try another afterwards?
I have a parent that needs some direction as to whether or not to buy a business and how they could set it up so that she cannot loose this. How can she go about not having this business coming ‘up for grabs’ by her partner in the case of a divorce?
Thanks![confused2]
Tam
The family law court can easliy unravel trusts!!
Your parent should consult a lawyer before buying anyhting. Maybe the business could be setup in your trust, where you mum/dad have no role other than beneficiary. But then they have to worry about your getting a divorce.
Terryw
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Thanks Terry
Good lord! Sounds like it could be quite messy at the best of times – a divorce! gees…… Think I might get her to see a lawyer as you said BEFORE she even thinks about anything.
Much appreciated!
Tam
Tam
See this one:
The family court case of Milankov & Milankov is at http://www.austlii.edu.au/cgi-bin/disp.pl/au/cases/cth/family%5fct/2002/195.html?query=%5e+milankov+
.Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ouch….. all that Legalese! Hurt my brain!MAkes you wonder if Trusts and Pty Ltds are worth all the trouble?
Cheers
C@34
This is a very interesting question. I was wondering although not quite related to the above topic. As a single who holds a couple of properties and other assets is there a way of protecting these from any future partnership spilts (or being sued). They are currently held in my name but in the future i would like to protect my assets and all my hard work.If possible?
Summer. yes, just mortgage them to someone in your family. eg you owned a $1mil property with a $200,000 loan. Allow your dad to take out a $800,000 second mortgae. That way if you get sued, your have no equity.
But on the otherhand, if your dad gets sued your in deep shit!
Terryw
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Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hey, if I was to set up a trust with mum as the beneficiary, is there anyway down the track (ie. after the divorce obviously) that i could somehow sell it to her? or perhaps transfer it to her?
Say, if i was to buy the business now (we are both looking at buying this business anyway), but if I was solely to buy it through a trust set in my name, could we transfer it somehow later? [whistle]
Cheers!
Tam
Tam
you had better talk to a solicitor about this. I beleive it would be possible to do. There are stamp duty and CGT implications, but if a trustee is changed (to your mum) and the beneficaries remained the same it would be possible to avoid these taxes. check out http://www.taxlawyer.com.au look for ‘resettlement of trusts’. BTW, you and your mum would both be beneficaries automatically in most trust deeds due to your family relationship.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
IMHO…you can set up as many trusts/companies etc as you like but if the family court feels that you are hiding assets or income they will just gouge them out of you another way or ignore the trust….keep in mind the processes within the familiy court are unlike any other court and is heaviliy geared towards the less empowered person in the relationship.
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