Nothing!
According to Australia’s Bankruptcy Act 1966 (“the Act”).
Transfers of property for less than market value, including transfers where no consideration at all is paid, may be challenged by a trustee in bankruptcy if the person transferring the property later becomes bankrupt.
Under the Act, “love and affection” has no value as consideration.
Although in a family business it may be a desirable strategy to have one partner hold the personal family assets (such as the family home) while the other partner bears the business risks, it is important that any interest in property that is transferred from one partner to another is done for market value and that value is paid to the transferor.
In most, if not all, States of Australia the transfer of property between spouses or domestic partners is subject to stamp duty if consideration is paid but that duty may be a small price to pay to keep a roof over your family’s heads.
Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.mo1728397308c.arj1728397308d@ofn1728397308i1728397308
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
