Asset protection question

Discussion in 'Investment Strategy' started by Broncsfan, 8th Jun, 2019.

Join Australia's most dynamic and respected property investment community
  1. Omnidragon

    Omnidragon Well-Known Member

    Joined:
    17th Oct, 2015
    Posts:
    1,693
    Location:
    Victoria
    That’s a values issue isn’t it, not sure if there’s a right or wrong? It’s like can gay people marry. Each entitled to own opinion.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    I wasn't talking about values, but what actually happens with family law.
    It is not as if a new spouse who comes with nothing automatically gets awarded 50% of everything if there is a separation.
     
    wylie likes this.
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,792
    Location:
    Perth, WA
    I guess people assume this all the time and decide to restructure their entire finances based on a false assumption.

    It makes no sense to me that people seem to want to go to extreme lengths to 'avoid' family law obligations without even getting a basic understanding of how family law works.
     
    wylie and Terry_w like this.
  4. Broncsfan

    Broncsfan Well-Known Member

    Joined:
    10th Feb, 2019
    Posts:
    46
    Location:
    Chermside
    That's some interesting assertions. Overly simplified one dimensional view of why trusts are used in my humble opinion

    I would suggest family trusts are quite common very vanilla and are used for purposes beyond avoidance of family court "obligations" as you term it. I'd suggest the implication of assets acquired for parents to pass onto children includes an "obligation" to share with 3rd parties is a view not widely shared.
     
    Last edited: 9th Jun, 2019
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    I think you have missed the point.
     
  6. Broncsfan

    Broncsfan Well-Known Member

    Joined:
    10th Feb, 2019
    Posts:
    46
    Location:
    Chermside
    I get the point. The point is parents should buy assets in their own name and pass onto their kids upon their death rather than use trusts for that purpose

    If only one had a crystal ball right
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    That was not the point I am sure!
     
    thatbum likes this.
  8. Mongcamdi

    Mongcamdi Active Member

    Joined:
    27th Jul, 2018
    Posts:
    37
    Location:
    SA
    I own 3 properties which are under my name only and almost paid off. I have 3 kids and would like to give one to each of them when mortgages are paid. If I transfer ownership to them before they get married, would it keep these properties only belong to my kids and not to be a subject of distribution or share in case of any separation in their future?
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    No. these properties could end up in the hands of their spouses in full or in part.
     
  10. Mongcamdi

    Mongcamdi Active Member

    Joined:
    27th Jul, 2018
    Posts:
    37
    Location:
    SA
    Thank you very much for your prompt response. Is passing on to them in my Will upon my death a better way?
     
  11. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,792
    Location:
    Perth, WA
    Depends what you mean by "better". In a family law sense, its pretty much the same as gifting it to them really.
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    I would say better generally because it would be at a later point in time. So they might end up separating before you death and it will have less impact them, although there are cases where potential future inheritances have been taken into account.
     
  13. Mongcamdi

    Mongcamdi Active Member

    Joined:
    27th Jul, 2018
    Posts:
    37
    Location:
    SA
    Thanks. I just think it's unfair if someone gets a benefit from a pre-marriage/pre-relationship property
     
    Last edited: 10th Jun, 2019
  14. Mongcamdi

    Mongcamdi Active Member

    Joined:
    27th Jul, 2018
    Posts:
    37
    Location:
    SA
    Thank you
     
    Terry_w likes this.

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia