March 2018 | Legal

Did you know a third party family member can be pulled into a Family Court matter if there are family businesses or family assets involved?

This has occurred where parties to a marriage or a de-facto relationship have brought claims against the former spouse’s parents for a share in the family farming business, farming land or other assets held by the former spouse’s parents or held in family trusts and partnerships.

These claims are called ‘third party claims’.

Usually a former partner will try to argue the parents hold land or other assets on trust for their child and those assets should be divided between the child and their former partner.

These claims are usually time consuming and involve significant legal costs regardless of the strength of the claim.

AustAsia Legal Pty Ltd can help you reduce your risk from third party claims by:

  1. Preparing a Binding Financial Agreement before a relationship is commenced;
  2. Preparing loan agreements for loans or money advanced by parents to their children;
  3. Preparing employment contracts for children working in the family business; and
  4. Preparing agreements or terms and conditions for children working in the family business.
  5. Preparing detailed succession plans.

AustAsia Legal Pty Ltd specialises in acting for families that face claims in the Family Court against their family business or other business assets including family farming businesses and farming land.

Please do not hesitate to contact us if you require assistance.

February 2018 | Legal

What is a Guarantor?

If you are borrowing in the name of a company your bank will almost always require the directors to personally guarantee the loan.

This means that you, as the director, become personally liable for the borrowing company’s obligations under the loan in the event that the company is unable to perform such obligations.

What is Guarantor Advice?

Guarantor advice is the provision of detailed legal advice relating to the loan and requires the lawyer providing the advice to execute a “legal advice certificate”.

The lawyer needs to review the loan documents and provide you with advice as to your rights and obligations under the loan.

So why do I need Guarantor Advice?

You need guarantor advice to satisfy the banks that you understand your rights and obligations under the loan and are becoming a guarantor of your own free will.

The reason for this is that:

  • Many of the clauses in the bank guarantees are inherently unfair on guarantors; and
  • The terms of guarantees can be complex.

The most important thing however is…
That obtaining guarantor advice and certificate to that effect does NOT protect you… it protects the bank.

How does it protect the bank?

Guarantor advice protects the bank from claims from claims by Guarantors that they did not understand the requirements of the loan or alternatively that they were forced to execute the documents.

Please contact any of our friendly legal team members for further information on legal@austasiagroup.com.

February 2018 | Legal

If you and your spouse have separated but are still legally married and no divorce order has been made by the Family Court, your former spouse could potentially make a claim that they are entitled to the majority, if not all, of your assets if you were to pass away.

If you do not have a will and you pass away then you will be considered to have passed away “intestate”. For any of your assets to be distributed an interested party would need to make an application to the Supreme Court for Letters of Administration which could include your former spouse who may be able to argue they should receive some or all of your estate.

Have you recently gone through a separation? If so you should consider:

  1. Preparing a new Will;
  2. Revoking any existing Enduring Power of Attorney and preparing a new Enduring Power of Attorney; and
  3. Reviewing and amending your Binding Death Nomination of your superannuation fund to protect your assets.

Please contact any of our friendly legal team members for further information on legal@austasiagroup.com.

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