13/10/2026
The family law system in Australia does not recognise any universally effective “asset-protection structure”, particularly when it comes to relationship breakdowns.
Whatever label is placed on a transaction, the Federal Circuit and Family Court of Australia looks beyond form and focuses on the real economic position of the parties and their assets. Legal and beneficial ownership, practical control, historical enjoyment, the source and application of funds, and whether a transaction has impaired the Court’s capacity to make effective property orders.
Consequently, a structure that is valid and effective under trust, corporate, tax or insolvency law is not necessarily effective in family law. The critical questions are:
- who supplied the capital;
- who controls the structure;
- who can appoint or remove the controllers;
- who received the benefit; and
- whether the arrangement frustrates a just and equitable outcome.
Click on the link below to read more.
https://tauruslawyers.com.au/asset-protection-strategies-what-works-what-doesnt-and-when-its-too-late/