Why Protect Assets?
People seek asset protection when:
Options Available
Binding Financial Agreement (BFA)
Often called a "prenup" in Australia. A legal agreement about how assets will be divided if the relationship ends.
Can Cover:
- Assets you're bringing in
Requirements
- Must be in writing
Limitations
BFAs can be set aside if:
Cost
Typically $2,500-$5,000+ per party for legal advice and preparation.
Keeping Assets Separate
During the Relationship
If you don't have a BFA:
Does It Work?
Partial protection. Separate assets are still considered in property settlement, but their source is a relevant contribution.
Company and Trust Structures
Can They Protect Assets?
Possibly, but courts can look through structures to the real position.
Considerations
- Legitimate business structures may offer some protection
What Can't Be Avoided
Court's Wide Powers
The family court has broad powers. Almost any asset can be considered in a property settlement.
Children's Interests
Nothing overrides the court's duty to ensure proper provision for children.
Practical Steps
Before Marriage
1. Get advice about your specific situation
During Marriage
1. Keep separate assets documented 2. Consider updating BFA as circumstances change 3. Don't assume past contributions will always be protected
The Reality
While complete asset protection is difficult, a combination of:
...can provide meaningful protection and clarity.