Family Law Asset Protection Strategies

The COVID-19 pandemic has shocked the financial markets and created difficult situations for people who own assets that have fallen in value. In this article, we explore three tips that could help protect your assets and finances throughout the COVID-19 crisis.

If you are thinking about asset protection in Australia, you can speak to Straits Lawyers about the various asset protection strategies and how they apply to you.

This is because each asset protection strategy suits a different purpose, and you will need to speak to an expert about your situation to know which is best suited to your needs. Depending on your circumstances, we may suggest something like a:
• Family trust;
• A will; and/or
• A Binding Financial Agreement.

After examining your situation carefully, we will talk you through the pros and cons of each structure and will advise which suits your situation the best.

Family Trust
Family trusts are a popular asset protection vehicle. In a worst-case scenario, a family trust may be an effective strategy to protect family assets being seized by a bankruptcy trustee in personal bankruptcy (for example, due to business failure).

Wills
The assets you leave behind can hold both financial and sentimental value and you may want specific items to be inherited by a certain family member or friend. A Will allows you to list individual people and assets and there is the opportunity for you to allocate an inheritance to children from previous relationships, as well as to friends and charities. There is also room in a Will to exclude family members who you do not want to have access to your assets.

Binding Financial Agreements
Binding Financial Agreement (BFA) is a legally binding financial agreement between two people which allows them to retain control over their assets, should their marriage or de facto relationship break down.

BFA may contain information about:
• Assets and debts;
• Joint and personally owned belongings and assets;
• Spousal maintenance;
• Expectations of any gifts and/or inheritances;
• Insurance coverage;
• How any property will be split; and
• What is covered in each party’s Will in the event of their death.

If you are going through a separation and want to sort out your finances, Straits Lawyers are now offering online services in both English and Chinese.

Simply purchase our online services via this link: https://straits-lawyers.square.site/product/binding-financial-agreement-consultation-bfa-/5?cs=true
Alternatively, you can email us at info@straitslawyers.com or call at 08 8410 9069 to find out more.

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Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.