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It's time to boot the old practice of placing assets in the name of the "risk-free" spouse.
It has been common practice for decades to split spouses into the “at-risk” spouse and the supposed “risk-free” spouse. So while the at-risk spouse, being a doctor, professional or business owner is out there making money and building wealth, the assets of the family reside in the names of the risk-free spouse as a protection against litigation.
In a relatively short 14 page unanimous judgement the Full Federal Court in Commissioner of Taxation v Bosanac [2021] FCAFC 158 blew apart this strategy:
“The issue in this appeal is whether, contrary to the judgment of the primary judge, Mr Bosanac held an equitable interest in residential property purchased for $4.5 million in the name of Ms Bosanac only. The deposit of $250,000 was paid with funds from a joint loan account. Mr and Ms Bosanac then jointly borrowed $4.5 million from Westpac and this was used to pay the balance of the purchase price... We infer from these facts that at the time of the purchase Mr Bosanac and Ms Bosanac intended that Mr Bosanac would have a 50% beneficial interest in the property that was to be their matrimonial home."
In this session, Grant Abbott from Abbott & Mourly lawyers and Michael Jeffriess from Eventum Optimum will review the Court's decision in Bosanac and:
1. Look at who is impacted and why
2. Methods of rectification
3. Two solutions to tighten up asset protection
4. How the decision impacts on estate planning for clients affected.
Attachments:
Webinar slides
Webinar resource links sheet
Commissioner of Taxation v Bosanac [2021] FCAFC 158