[et_pb_section fb_built=”1″ _builder_version=”4.4.0″][et_pb_row _builder_version=”4.4.0″][et_pb_column type=”4_4″ _builder_version=”4.4.0″][et_pb_text _builder_version=”4.4.0″ text_font_size=”16px” text_line_height=”1.8em”]

The Background

A client recently approached us with concerns about his future financial stability following the decision to separate from his wife. He was actively seeking assistance to access financial advice in the lead up to the separation to alleviate any financial fears related to the separation. He expressed concerns over both his future and the future of his children. What did an upcoming separation mean in regard to his, and his children’s financial stability?

An impending separation not only means emotional upheaval but an often-overwhelming amount of paperwork, money concerns, lawyer bills and the potential loss of income. It can be a stressful time. When our client came to us, he was experiencing all of the above concerns. It was evident that he required advice and guidance on how to structure his finances in the most tax-effective way possible moving forward. This would both provide financial stability and peace of mind for what lay ahead.

AAG in Action

To commence with, we conducted several meetings with our client to assess his current situation. Via meetings and consequent emails, we worked a suitable way forward, providing him with a financial structure that would put him in a good place as well as work most effectively tax-wise.

Our strategy included:

  • Establishing a Child Maintenance Trust;
  • Establishing a new bank account in the name of the Child Maintenance Trust to allow for payments; and
  • Provide a structure that also allowed for asset protection and future growth of his business.

The Result

As a result, our team was able to:

  • Establish a Corporate structure that was more tax effective for his family;
  • Create a Child Maintenance Trust that enabled income to be paid from the Trust to each of his children (as minors) up to the tax-free threshold; and
  • Help our client achieve a financially sustainable position for his family.

The benefits were immediately clear. Our client relayed feelings of financial stability that he had never felt before, even prior to his separation. By asking for help, he enabled himself the confidence to move through his separation without the additional financial anxiety he may have encountered without adequate advice and support.

If you are in a similar situation and would like to talk to us about your options, please contact us on (08) 9227 6300 or email at clientservices@austasiagroup.com.

Best regards,

Simon Chesson
Director

 

Important information and disclaimer

This publication has been prepared by AustAsia Group including AustAsia Accounting Services Pty Ltd (Registered Tax Agent No 7587 3005) and AustAsia Legal Pty Ltd (ACN 123 160 476).

AustAsia Accounting Services Pty Ltd and AustAsia Legal Pty Ltd – Liability limited by a scheme approved under Professional Standards Legislation.

Any advice in this publication is general only and has not been tailored to your circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance, or other decision. Please seek personal advice before acting on this information.

Information in this publication is accurate as at the date of writing, 6 March 2020. Some of the information may have been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]