Family Trusts to protect your house against gold diggers
New story here.
Top NZ lawyer closed his family trust and others should follow suit
I am not a lawyer so correct me if I am mistaken.
A friend of mine has a prenup also called a contracting out agreement and a family trust which both have failed.
There is an abundance of newer case law that now says you can not use a trust to protect yourself against a gold digger. They use words like diversion of matrimonial income, the prenup circumstances have now changed, it was so long ago. There is now children, even if they were not yours and the gold digger can remain in the house and you the settler of the trust has to leave. And if you don’t we will put a protection order against you as you have to leave.
There is a new Trust law that is due to come out that will catch up with case law and it will include making running a trust more expensive and time consuming. However in the mean time case law is in play and has now effectively finished off just about all of the protection a family trust had.
Any ideas on how to protect your stuff?
Maybe no partner, girlfriend beyond 6 months? Or not at all. Maybe owned by a company in the Cayman islands. Maybe live in Australia or some other place that does not step on property owners rights.
I hadn’t heard of this which is pretty worrying. One option especially for younger guy’s, might be that actually your parents own the house, and you pay rent…..
Comment by Viv Roberts — Wed 26th February 2020 @ 8:33 am
I seem to remember that the people who weren’t so concerned about this sort of paperwork, ran their own businesses, on quite a large scale. One I remember, who had been reduced to being practically penniless by ordered settlements, was amazingly generous to me with beer. When he travelled to Auckland, he brought a man friend, same familycaught interests (not intimate friend), and they stayed in style in Sky City Hotel and ate very well too.
When he talked about the rorts used against him, my eyes popped out at the cost. But his smile was broad and his voice hearty. Perhaps the beer helped, but I am sure that he had other reasons to enjoy life so well.
I am sure that there is a constructive conclusion that can and should be drawn. I am still trying to work out what it was or is?
I certainly don’t remember him stressing over legal details or will a trust stand up? I guess he just chose not to be worried about such things?
I certainly don’t think that I could live that pennilessly and smile like that.
Caveat Emptor or be prepared seem to be relevant concepts. It is still a pretty Wild West out there.
Comment by Murray Bacon — Wed 26th February 2020 @ 4:04 pm
Matrimonial property is a legal business. It lets your lawer take all your assets while ‘helping’ with your dispute. Only represent yourself and don’t expect any sense in Court. We don’t have a justice system, we have a legal system. Making the penalties so harsh and discussions about them so expensive means men are being cautious about getting married and having a family. Population control? Also expect the gay lifestyle to be heavily promoted in the West to help with falling birth rates.
Comment by Frank — Sat 29th February 2020 @ 10:44 am