Hiding assets

Same with family law settlements whether those involving divorce or defacto separation.

There's nowhere you can 'hide' assets.

However, a discretionary trust can provide asset protection. The family courts have in past cases 'looked through' the trust t osee the beneficial owners of the assets, rendering the trust (in that particular case) next to useless.

The best advice I can give is don't get divorced.

A wise man once said "if it flies, floats, or ….. , rent it."p

… Not that I can talk, got married this year. Lol

I had a client whose mother died and she had $150k worth of UPE from the family trust. The trust had no spare cash and it was a third party executor who was duty bound to call in her debts. In the end the executor had to sue the trustee of the trust (director was the son) so that the estate could get the $150k and then distribute it to the beneficiaries – one of whom was the son. Supreme Court = very expensive.

So be very careful about UPEs!

In Australia pre-nups are called "binding Financial Agreements" and they can be made before during or after a marriage/defacto. They are binding if done properly – this is covered in the Family Law Act.

Many are not done properly though. They can also be challenged if there are material changes in cicumstances which are not considered

you mean controlling the property but not owning?

1. Company with you as shareholder, or a trust as shareholder.

2. Discretionary trust with you as one of many beneficiaries

3. Unit trust with you as unit holder or discreionary trust as unit holder.

4. Bare trust with you as only beneficiary

5. spouse's name with you living there, paying for the loan etc – could be construed as a trust

6. parent's name with you hoping to get the property via will

7 parent's name with you hoping to get control via a testamentary trust in will

8. SMSF fund

9. Custodian trust as trustee for a SMSF (if bororwings).

Bob, I think you must have misinterpreted your accountant.

A SMSF has the sole purpose of providing for the retirement of its members. Members cannot benefit from the fund until retirement. This means all rents and capital gains stay in the fund until you reach the stage where you can legally take income out = meet a condition of release. You cannot benefit indirectly by using the property or renting the property – unless it is business real property and rented at arms length from the fund.

Bob, what are you trying to acheive?

If a person buys a house generally the bank will want that person to be able to service the loan. They would only allow only a spouse to guarantee the loan.

With a company or trust it would be possible

Such a transaction may not give any asset protection. If you were to get me to own the property for example, and you paid the loan then it would easily be demonstrated that I am trustee for you. Also what if I were to go bankrupt or get divorced, or die??