How do I protect my LAQC in case of divorce?

Question from Laurence updated on 22nd January 2008:

As we plan to invest in property, we have been recommended to create a LACQ under my husband name for taxes purposes. We already have a property under a trust. Can I be included in the LACQ, if not how can I be protected in case of divorce? Will the property be share between us legally?

Our expert responded:

In a situation such as this, I am assuming your income is either much smaller than your husband's or nil. In a situation such as this, we would set up the shareholding so that you had one share, and your husband the rest. As the LAQC is set up after you and your husband got together, then it will be considered joint property, regardless of how the shares are owned. How the shares in an LAQC are owned is about how the tax benefits will be split between the shareholders. If you do have any concerns, I would suggest you consider a family lawyer for their advice, even going so far as to set up a formal agreement in relation to the LAQC and what would happen if you were to separate or divorce.

Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.



 



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