How to save my FINANCIAL a*s in case of divorce/break up?

[jamesross]

I live in Australia, a country where women are superior to men in the family court.

I am in a defacto relationship with my current girlfriend since 2012, and we have a 1 year old kid together.

Our relationship was never very good, lots of up and downs, and since I am a wealthy online business owner, I'd like to set up a strategy
to save my financial assets and business in case of a split up.

I'm 100% happy to pay child support and support my child, however, I am not willing to give any percentage of my business or financial assets (money from my personal
and business accounts).


Considering that I have ZERO physical assets and only monetary assets (money in my personal and business accounts here in Australia), how can I protect my
finances and be able to not split any of them to my girlfriend once we break up?

I don't own a car, or house, or anything else, a part from a computer and a mobile phone and lots of cash in my company bank account
(she doesn't know how much I have).


I have a close friend that he was ordered to pay $500K to her ex of 2 years just because she called up a few lawyers after their break up, he got his business and personal accounts
frozen without even any notice, he was aware of it just when he tried to pay for his lunch, and his credit card didn't work.
The court ordered child support + a lump sum of $500K to her, even tho she has a job earning $200K a year.


What would be the best set up to protect my company money that is currently held in my business bank account?
- Set up a foreign trust + charitable company abroad and send regular payments to this trust from my Australian bank account?
- invest in cryptocurrencies and stable coins directly from the company account?
- any other idea that would 100% work?

 

[Sols]

There was a very similar thread a few weeks ago that answers some of your questions: Question - Hide money from wife

It comes down to three options:

1. Work something out amicably with your spouse (ex-spouse to be). This can be anything from an amicable divorce to a postnuptial agreement.
2. Make legal arrangements, but know that they must be set up in good faith (on paper) and years in advance prior to a divorce or you risk having the structure fall apart due to fraudulent conveyance. This would be a trusts, foundation, or other layered solution.
3. Make illegal arrangements, by hiding the money through spending it on something in a way where you can get the money back in the future.

If you're nervous about doing #2 because of the potential repercussions of communicating with service providers, set up a separate, anonymous email (Protonmail, Tutanota) and separate phone number (VOIP, burner phone).

Hiding money in crypto is risky in case a divorce turns extremely hostile and your financial records need to be presented to a court. This depends on how aggressive your adversary is. If your own personal assets are suspicious, your ex-spouse's counsel could attempt to subpoena your company and get access to its financial records. There are layers upon layers of complexity here that make it impossible to even guess what would happen without spending hours looking into the circumstances.

 

[jamesross]

There was a very similar thread a few weeks ago that answers some of your questions: Question - Hide money from wife

It comes down to three options:

1. Work something out amicably with your spouse (ex-spouse to be). This can be anything from an amicable divorce to a postnuptial agreement.
2. Make legal arrangements, but know that they must be set up in good faith (on paper) and years in advance prior to a divorce or you risk having the structure fall apart due to fraudulent conveyance. This would be a trusts, foundation, or other layered solution.
3. Make illegal arrangements, by hiding the money through spending it on something in a way where you can get the money back in the future.

If you're nervous about doing #2 because of the potential repercussions of communicating with service providers, set up a separate, anonymous email (Protonmail, Tutanota) and separate phone number (VOIP, burner phone).

Hiding money in crypto is risky in case a divorce turns extremely hostile and your financial records need to be presented to a court. This depends on how aggressive your adversary is. If your own personal assets are suspicious, your ex-spouse's counsel could attempt to subpoena your company and get access to its financial records. There are layers upon layers of complexity here that make it impossible to even guess what would happen without spending hours looking into the circumstances.

Circumstances are this:


250K in my business bank account with an online business.
Nothing else to protect.

How about slowly moving these money over the years to an offshore trust + company (on my name or with a nominee) such as in the Seychelles or Switzerland and keep them there?

 

[Sols]

Sure, that can work. But as I mentioned, arrangements like trusts must be set up in good faith, years in advance prior to a divorce or you risk having the structure fall apart due to fraudulent conveyance. It doesn't matter if you put in Switzerland, Seychelles, or Cook Islands. They all have the same provisions. The only difference is the duration during which must pass between a trust being set up and someone coming after the trust. This period is usually in the range of 2-4 years. If you make arrangements now in a jurisdiction with a duration of two years, your assets are untouchable under the laws of that jurisdiction in 2023. If you get divorced before then, the trust is at risk of being pierced.

That said, 250,000 AUD is unlikely to be enough for a Swiss bank. They usually want 500,000 CHF or, preferably, a few million CHF minimum. You might have better chances with a trust Cook Islands or Samoa, and banking in Singapore, Malaysia, or Hong Kong. Speak with the likes of Southpac Trust, Asiaciti Trust, Sovereign Trust, and maybe Appleby or Vistra.

Isle of Man or Gibraltar might also work. Banks there are usually OK with anything over 100,000 GBP for trust arrangements.

 

[Shlomo]

I created the thread on the very same topic a while ago, and I also consulted some lawyers about it. There were different answers, because I live in different places, so no one has been able to give me a definite answer because different laws obviously apply in different jurisdictions.

I think partly it comes down to how much money you have however, and how much effort, time, money and energy your wife is willing to spend on getting her hands on it. The advice to spend it on something legitimate should work in most cases however. Overly complex solutions might end up costing too much to make it worthwhile, based on what I was told.

If you were more of a digital nomad, then simply buying crypto, transferring it to different wallets, and notify your wife's legal counsel that you were scammed might work. It is after all hard to prove otherwise, and if you are on the other side of the world, it is doubtful the police would be out to get you when they cannot even prove you did anything wrong.

Anyway, I am definitely no expert, so please do NOT take anything I write as fact or legal advice.

 

[Runway]

I think the previous comments were valid in case these would be personal funds, here I understand funds are in your company. Move out funds from Australia, this would make it at least more difficult to get accounts blocked as happened to your friend. Your company could for example invest into a startup in Singapore

 

[Sols]

I think the previous comments were valid in case these would be personal funds, here I understand funds are in your company. Move out funds from Australia, this would make it at least more difficult to get accounts blocked as happened to your friend. Your company could for example invest into a startup in Singapore

While there is a distinction, it gets blurry in case the company is or can be construed as concealing funds. This might be a situation where criminal intent pierces the corporate veil and a court views the company just as an extension of the natural person. That's why companies alone aren't suitable for asset protection.

This is assuming the ex-spouse is aggressive and has skilled counsel.

 

[Runway]

Sure, I agree it's not bulletproof, but funds in a company makes them easier to move. Moving funds out of the jurisdiction where you are living is the first easy step to take imho

 

[jamesross]

I'm a digital nomad, but I'm stuck in Australia for the next 3-5 years.


So a foreign trust + foreign company such in the Cooks island would be the best option.

How to transfer the money to those accounts tho? simply a bank transfer directly?

TYes the court may not be able to put their hands on those money but Wouldn't the court check those transfer and still order me to pay my ex wife 50% of the transferred assets within a specific timeframe?

 

[Sols]

So a foreign trust + foreign company such in the Cooks island would be the best option.

Speak with an Australian lawyer before you take any action. While the people at for example Southpac Trust are great at what they do in Cook Islands, they aren't a substitute for also seeking legal advice for the laws that apply to you as a person.

How to transfer the money to those accounts tho? simply a bank transfer directly?

How the physical transaction takes place may vary but can be as simple as a wire transfer.

TYes the court may not be able to put their hands on those money but Wouldn't the court check those transfer and still order me to pay my ex wife 50% of the transferred assets within a specific timeframe?

This is impossible to answer meaningfully since there are layers of nuance and complexity missing from the picture.

You are allowed to transfer money freely and in good faith prior to divorce proceedings. If the court finds that the transaction was done for the purpose of concealing funds or placing them in a way that's out of reach of the ex-spouse, you are in trouble. That's why the whole arrangement needs to be done properly, and well in advance.

 

[jamesross]

Speak with an Australian lawyer before you take any action. While the people at for example Southpac Trust are great at what they do in Cook Islands, they aren't a substitute for also seeking legal advice for the laws that apply to you as a person.


How the physical transaction takes place may vary but can be as simple as a wire transfer.


This is impossible to answer meaningfully since there are layers of nuance and complexity missing from the picture.

You are allowed to transfer money freely and in good faith prior to divorce proceedings. If the court finds that the transaction was done for the purpose of concealing funds or placing them in a way that's out of reach of the ex-spouse, you are in trouble. That's why the whole arrangement needs to be done properly, and well in advance.

"You are allowed to transfer money freely and in good faith prior to divorce proceedings. If the court finds that the transaction was done for the purpose of concealing funds or placing them in a way that's out of reach of the ex-spouse, you are in trouble. "


Why is that? it's my money, I can do what I want with it, I am not married, just in a defacto relationship with a child in common.

I earn my own money and she earns her own money, so why would it matter how I spend my money and where I put them? my woman doesn't have access to my money anyway and she never did...

 

[Sols]

Why is that? it's my money, I can do what I want with it, I am not married, just in a defacto relationship with a child in common.

I earn my own money and she earns her own money, so why would it matter how I spend my money and where I put them? my woman doesn't have access to my money anyway and she never did...

These are questions you should be asking an Australian lawyer, not some stranger on the internet. I can only tell you about how things in similar situations work in general and with broad strokes. Use the information you obtain here to help navigate your way to a solution.

For example, cohabitation is in some jurisdictions enough to classify a couple as effectively married when it comes to certain aspects of the law. What aspects? Do they apply in your situation? If so, how and to what extent? That level of detail is what you need a lawyer for.

 

[JackAlabama]

"You are allowed to transfer money freely and in good faith prior to divorce proceedings. If the court finds that the transaction was done for the purpose of concealing funds or placing them in a way that's out of reach of the ex-spouse, you are in trouble. "


Why is that? it's my money, I can do what I want with it, I am not married, just in a defacto relationship with a child in common.

I earn my own money and she earns her own money, so why would it matter how I spend my money and where I put them? my woman doesn't have access to my money anyway and she never did...

No, that is not how it works these days in these socialist states.

A) It is not your money nor can you do what you want with it. It is the states money and you are allowed to temporarily keep some illusion of having it. If it can be frozen with the stroke of a pen, by definition it is not yours at all.

B) The newspaper is full of gender topics. So you surely see that your gf is of course entitled to your assets.

C) Yes, you do and will get rekt royally in a divorce, with the majority supporting that. Some goes for all western countries.

After these basics have been established, you will have more clear picture what you face and can navigate this minefield better with a good plan.

 

[Konstanz]

You can use trust structures for that. I would advise you to contact a professional lawyer.

 

[hernanday]

I think you are already screwed, you have a kid, you probably cohabitated with the woman so are likely considered common law marriage. At this point your question is really, how can you hide your assets after your relationship is failing. The best answer I could give you,is appear to be spending your money to your soon to be ex. You need to give the appearance of spending money. Like for instance, you have $250k, go on a trip to casino, buy 200k in chips, go to a table, take a photo, and then go back and get your money back. Then post on social media, I lost 200k in one hand. You will have the appearance of having lost the money. Get the money from the casino in a cheque. Cash the cheque in a foreign jurisidiction where you have a business llc that your name don't appear on the papers, but the other participants lack account access (nominees). Now, you must lie your a*s off and deny under oath you have the money, and hope you don't get caught.

 

[xiaojieting2]

An amicable divorce could actually be a great solution and probably the best one, the right one. However, sometimes it is more than just impossible. The offshore trust is a good solution actually, it has to work for 100%. They just would not know about those money and they will not have any right for those money, as the only one who could actually acces them, would be you. However, I actually think that trying to prevent this kind of things is a better things, that is why I said to myself that I will make up a prenuptial agreement before getting married. However, in your case, you might actually need a good advice from a great family solicitor. You could actually call for the services of these guys Solicitors Sudbury | Colchester | Bury St Edmunds| Braintree | Suffolk . Back when my bro was in the process of getting divorced, they helped him keep almost everything.

 

[KimberlyJames]

An amicable divorce could actually be a great solution and probably the best one, the right one. However, sometimes it is more than just impossible. The offshore trust is a good solution actually, it has to work for 100%. They just would not know about those money and they will not have any right for those money, as the only one who could actually acces them, would be you. However, I actually think that trying to prevent this kind of things is a better things, that is why I said to myself that I will make up a prenuptial agreement before getting married. However, in your case, you might actually need a good advice from a great family solicitor. You could actually call for the services of these guys Solicitors Sudbury | Colchester | Bury St Edmunds| Braintree | Suffolk . Back when my bro was in the process of getting divorced, they helped him keep almost everything.

I also think that the prenuptial agreement is the best solution in order to avoid this kind of situations

 

[xiaojieting2]

I don’t know what supposes the law in Australia, but in my country people when get married, everything starts being common. The apartment, the business, everything. My fiancée moved in my apartment that my parents bought for me and after we split up I decided to sell it because I didn’t want to live with that woman anymore. I couldn’t sell it without her signature and it was hard for me in the court to convince the judge something. She started to do the Craziest Things in a Relationship that she could, and it was a total mess. Good luck, and hope you can solve this problem.

 

[LondonOTC]

Maybe find somebody willing to make a service invoice and get crypto. Also you might sell the Australia company to a US LLC for anonymity