Asset protection lawyer in NSW

Asset protection is a proactive legal approach to securing your personal or business assets against potential threats, such as financial insolvency, relationship breakdowns, legal disputes, or estate challenges.

By creating the right structures and ownership frameworks, asset protection reduces the risk of your wealth being exposed to claims or liabilities. It’s about taking control before issues such as bankruptcy arise, ensuring your assets are secure and protected for the long term.

Many people overlook the need to protect personal assets like their family home, undervaluing their worth. Others assume asset protection is only relevant for the wealthy, while business owners may mistakenly believe their assets—such as equipment and intellectual property—are automatically safeguarded, even though these are highly vulnerable to legal risks.

In reality, an asset protection strategy is worth considering if you:

• Own a home
• Hold investments
• Are self-employed or run a business
• Work in a high-risk industry, such as mining
• Possess valuable intellectual property

Every day individuals face risks to their assets that may not be immediately apparent. We can help you identify these risks, explain the potential consequences, and implement effective risk management strategies to minimise them.

Protection strategies can help safeguard your assets in situations such as:

• Financial challenges or business insolvency
• Lawsuits or legal actions against your business
• The breakdown of shareholder agreements, joint ventures, or business partnerships
• Claims from creditors, divorce proceedings, or personal bankruptcy
• The potential divorce or bankruptcy of your children, especially if they are named beneficiaries in your will

Being proactive with asset protection can be vital to avoiding significant legal and financial risks.

Firstly, waiting until a threat arises can leave you exposed, as Australian bankruptcy laws prevent transferring assets with the intent to defraud creditors. Liquidators and bankruptcy trustees have the authority to reverse certain transactions, sometimes up to five years prior. Establishing strategies well in advance ensures your assets are protected long before any potential risk emerges.

Proactivity also acts as a deterrent. When litigation lawyers assess whether to pursue a case, they often evaluate the defendant’s assets. If your assets are protected or appear inaccessible, the likelihood of being sued diminishes.

Moreover, while business insurance, such as professional indemnity, offers a layer of protection, it has limitations. Policies may not cover all claims or only protect up to a certain amount, leaving you personally liable for the excess. Insurance companies operate for profit, so it’s crucial to carefully review your policy, understand the coverage limits, and be aware of circumstances where claims may be denied.

Taking protective measures today can save you from significant challenges in the future. Let us help you put a strong asset protection plan in place.

Superannuation can provide significant protection from creditors during bankruptcy, as it is generally shielded up to a certain value threshold. Any amount exceeding this limit, however, may become accessible to creditors.

It's important to note that contributions made to your superannuation account could be scrutinised under bankruptcy laws. If these contributions are deemed an attempt to avoid paying debts, they may be reclaimed by creditors.

Seeking legal advice is crucial to understanding how to best safeguard your superannuation and comply with the relevant laws.

Various trusts can be utilised to safeguard assets. In particular, a discretionary testamentary trust is a common option to shield an inheritance from potential claims under family law.

Selecting the right type of trust and receiving tailored legal advice are essential to protect your assets effectively. This approach ensures the trust structure aligns with your unique needs and financial circumstances.

Our experienced lawyers can guide you in choosing the most suitable trust or estate planning strategy for your situation. Contact us to book a free phone consultation and start planning today.

Many individuals make errors or hold misconceptions about asset protection, which can lead to unnecessary risks. Missteps such as improperly structuring trusts or failing to seek sound tax and estate planning advice can expose personal assets and undermine financial security.

To avoid these pitfalls, it’s essential to consult a legal professional who can provide tailored advice specific to your personal and business needs. Our experienced team can guide you in creating a robust asset protection strategy that protects what matters most.