Why do I have to think about Asset Protection and Ownership Structures?

If you are in business - you are at risk of potentially losing all your assets. It does not matter whether you have a small service business, you practise a profession or a trade, or own investment properties - you are at risk of someone making a claim against you and your assets.

Imagine you are 55 having spent your entire life working hard, taking commercial risks, juggling the never ending problems with customers, staff, suppliers, banks, the tax man etc. hanging in there and gradually building your wealth for an enjoyable retirement and to pass on what is left to your family.

Imagine then a claim coming out of the blue - one that you had no control over and one which may have little merit, but a claim a court nonetheless decides you must pay - a claim that will take all your wealth or more to meet! You are suddenly facing bankruptcy and have little energy or time to start over again.

What is Asset Protection about?

Asset protection is about reviewing the way you carry on your business, trade or profession, how you own your private and business assets and how to ensure that if the worst occurs, you do not lose everything you have worked so hard to create.

We are not talking about disposing of your assets to avoid your creditors when you are about to go bankrupt. By then it is too late. Trying to protect your assets in those circumstances may well do more harm than good and could even land you in jail.

We are talking about sensibly organising your affairs while things are going well.

Is Asset Protection only for those in business?

Not necessarily. With the number of mixed families arising from an increasing rate of divorce there are more people challenging Wills in court - claims made by disgruntled family members (such as estranged spouses, children and step children), chasing more than they have been left in the Will.

The law does not allow you to be the sole judge of who you wish to give your property to on your death. If your Will is challenged, the court may decide to give the person making the claim a large part of your estate against your wishes. Asset protection is also about organising your affairs to prevent this from occurring. (See Challenging Wills section on this website for more information)

Can I protect my wealth from divorce or relationship failure?

These days you can enter into binding agreements dealing with the split of assets if a relationship fails. You may have heard them called “Prenuptial Agreements” and you can benefit from having one if you are considering marriage or a relationship, or already are in a relationship including a de facto or same sex relationship. (See the Family Law section on this website for more information).

If you would like to find out how to protect your assets from the risks of business, property ownership or even relationship failures, call one of our experienced team members now. If you would like to read more about Asset Protection view our Asset Protection...Client Guide - A4 version (PDF 1.3MB).

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