Hi, my parents wants to transfer some properties to me and my brother, but one of the concerns is that if the properties are in our names, our future partners may get half in a divorce situation.
Neither of us is married at the moment. The question is if we set up a trust and trustee company with me and my brother as the beneficiary and directors, is the assets transferred into the trust safe in a divorce situation? Or does it offer no protection under family law?
Also, does the situation change if I use the properties to borrow money against it to gift it into the trust?
Thanks
The short answer would be no, not much will protect you from marrage (currently finding out the hard way[wacko]) There is not much the family law courts can not access in the case of a marrage breakdown. They do however take into account the assets you come to the relationship with and the assets you build together.
Hope this helps
CATA
Asset Protection Specialist
[email protected]Sorry to hear that you are in that situation. I hope things goes well for you. I guess it is some consolation that the courts takes into account the assets each party brought into the marriage.
It is interesting to hear first hand on what the situation acutally is, as most of the books I read about trusts claimed that it offers some protection against divoice. However, when I speak to accountants, they are not too sure.
So if you are in a low risk occupation (e.g.salary earner), is the costs of setting up and running the company and trust worth the benefits that you get? What sort of factors that you have to take into account?
Ih ave seen conflicting advice regarding this. I think having the assets in a trust will help greatly. But the family court does have the power to unravel trusts and companies.
Terryw
Discover Home Loans
Parramatta
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