Asset Protection Lawyer Melbourne

We are Asset Protection Lawyers in Melbourne, who are available to help develop and implement the strategies and processes to protect your assets. An asset protection lawyer understands how to safeguard the assets you have, the best way possible. You should speak with a lawyer who specialises in creating structures to shield your personal assets from vulnerability.

What is Asset Protection?

Asset protection is about minimising legal and, business risk, by safeguarding assets from litigation, loss and diminution in value. Lord Commercial Lawyers recommends regularly reviewing your assets, navigating potential risks and updating your protection strategies.

By placing your assets in the right structure, such as a company, discretionary trust or superannuation fund or even your partners name, you create a legal separation between yourself and the assets, often while retaining control. This forms a foundation for long-term wealth management, personal security, and financial independence.

If you are in a business then you should know it is likely to be sued two to three times in your business life. Directors are especially exposed. If your company faces legal action, you could be named personally in the proceedings. That’s why asset protection is critical.

The notion of asset protection is entrenched in capitalist economies. This idea is reflected by the well-established role of limited liability companies and family trusts. The goal of asset protection is to secure one’s financial freedom, financial privacy and financial independence. However, these goals are not a ‘fait accompli’ as the government has given priority to the policy objectives of revenue collection and creditors rights. These rights continue to be expanded.

The reality is that we live in a culture of increasing accountability; directors of companies are increasingly becoming subject to litigation lawsuits. Frivolous or not any lawsuit is serious and exposes you to loss. In order to protect one’s assets structures, processes and mechanisms need to be put place to minimise risks and exposure to litigation.

Why You Must Act Proactively

A core principle of asset protection is timing. The best time to protect your assets is before a problem arises. If you act too late, transfers and structures can be overturned under bankruptcy and insolvency laws.

Australian Bankruptcy law prohibits a person from transferring their assets to another with the intent of defeating a known creditor. Liquidators and trustees in bankruptcy have far reaching powers to set aside transactions. But most of these powers are subject to transactions that took place within certain time frames, that is why it is important to act now.

Being proactive also discourages litigation. When lawyers investigate whether to sue someone, they assess whether the person holds assets worth pursuing. If you own little or nothing in your name, the incentive to sue drops dramatically.

Making Assets ‘Not Yours’

Effective asset protection involves legally distancing yourself from ownership while retaining control. This means moving your assets out of reach of courts, creditors, and government agencies, long before there’s any sign of risk.

Most businesses rely on professional indemnity or liability insurance. But insurance has limits, both in coverage and payout. Exclusions and caps are common, and insurers are, after all, in business to make a profit. Always read the fine print and understand what your policy does and doesn’t cover.

Your Business Structure Matters

Your business structure can either expose you or protect you.

• Sole traders and partnerships offer little to no asset protection. As a partner, you’re liable for the actions of other partners.
• Companies and trusts, when properly structured, create separation between your personal assets and business liabilities.

Superannuation

Superannuation is an effective form of asset protection. This is because superannuation is protected from creditors subject to some conditions.

Discretionary Trusts

Discretionary trusts are one of the most flexible and effective asset protection structures as they give you flexibility as to income and asset distributions.

• The trust owns the assets, not you personally.
• The trustee controls asset distribution.
• Beneficiaries can include family, companies, and other trusts.
• Asset ownership can be separated from benefit and control, making it harder for creditors to reach them.

Putting in Place a Strategy

Too often, clients only start thinking about asset protection when it’s already too late. Generally it is only when something goes wrong that people turn their minds to whether or not they have “firewalled” their assets.

Bankruptcy laws are extensive and if you haven’t put protection mechanisms in place long before the trouble arises it is generally too late as trustees in bankruptcy or liquidators have extensive power to “claw back” or set aside recent transfers of wealth.

Insurers, especially in the areas of professional indemnity, public liability, and product liability, will closely scrutinise any claim before deciding to pay out. It only takes one disgruntled customer, client, or patient to upend a lifetime of work.

How Can Business Owners Protect Themselves?

Starting and running a business is a risky proposition involving planning, marketing, day-to-day management, and compliance with state and common wealth laws. Not to mention actually delivering products and services at a price people want and making a profit which justifies this effort.

While these risks can’t be eliminated entirely, they can be managed. That’s where a well-structured asset protection plan comes in.

Our Approach to Asset Protection

Lord Commercial Lawyers offers tailored, legally sound strategies that protect your personal and business wealth before problems arise. Our process involves reviewing three key areas:

Personal Strategies

We examine your business, identify the risk and review your current asset position.

Your personal strategies focuses on effective protection of the wealth you have accumulated so it is not exposed to the risk associated with your business.

In particular we examine how you would be exposed in a bankruptcy situation. This generally involves legally transferring and protecting assets, as well as avoiding creditors’ challenges to these transfers.

We then develop strategies to:

• Legally separate ownership of your assets from your personal liability
• Shield key assets (such as real estate, investments, or savings) from bankruptcy risks
• Reduce exposure to claims through trusts, appropriate ownership structures, and financial planning tools.

Business Structure and Funding

We assess:

• Whether your current business structure is appropriate (sole trader, partnership, company, trust)
• Whether your funding arrangements put personal assets at risk (e.g. director guarantees)
• Opportunities to restructure to reduce risk and improve tax outcomes
• Even if your business is already established, restructuring may still be possible to protect your position going forward.

Management of Day – to – Day Risks

We focus on avoiding trouble before it arises. There are many risks that are inherent in operating a business so it is inevitable that conflict will arise if you co own the business.

We also help you anticipate and address the practical risks that come with business ownership:

• Are your terms of trade clear and enforceable?
• What happens when a co-owner wants to leave?
• Do you have enforceable restraints to prevent ex-employees from poaching clients or using your data?
• What happens to your assets when you die? Are they protected from estate claims or vulnerable beneficiaries?

These are not hypothetical questions, they are inevitable realities for any business owner. A properly drafted shareholders’ agreement, employment contracts, and estate plan are all part of a comprehensive asset protection strategy.

Protect Your Future

Every business owner should consider an asset protection strategy. It ensures that if your business or you personally are sued by a client, supplier, or employee, your core assets are insulated from the fallout.

Lord Commercial Lawyers have extensive experience in asset protection, having advised numerous business owners, professionals, and investors. If you or someone you know is looking to future-proof their wealth, we’re here to help.