Everything is vulnerable to a claim by your spouse - even sporting awards

Hello everyone

I have recently had the immense pleasure of speaking to a number of elite athletes from several different sports about asset protection.

My presentations have been focusing on how to protect the money they are earning whilst playing elite sport from third parties, by establishing companies, trusts and self-managed super funds.

Obviously as a family lawyer I also explain to them that holding assets in corporate entities and the like does not protect them from claims by their spouse.

The Family Law Act allows the court to look behind companies and trusts to establish all the assets of the husband and wife or de facto partners.

Sporting awards and memorabilia can be worth a significant amount of money - medals from the Olympics and Commonwealth games or a premiership medallion or guernsey can all be valued and sold by the court, even if the person who earnt such prizes has no intention of ever selling them.

Such things are part of the assets that have been created by the parties during the relationship and a vulnerable to a claim.

The only way to fully protect them is to sign a Binding Financial Agreement with your spouse removing them from the assets to be divided at the end of the relationship.

Many of the athletes I have spoken to felt protected telling me their spouse has said they "will never touch the memorabilia". Unfortunately such promises or comments are not binding on a court and at the end of a relationship if you have awards worth thousands of dollars those accolades will be added to the list of assets for division, in the same way that your house, car and furniture are.

As always please feel free to comment on this or any other of my blogs. I would also be happy to respond to any questions you may have on this topic.

If you have any further queries please feel free to contact me directly at Septimus Jones & Lee on (03) 9613 6555