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Some strategies for small business persons to consider when formulating their asset protection plan, where possible:  

• Husband and wife should not both be directors of the family company.         

•  The husband and wife should each have a superannuation savings program.      

• The family home should not be used as security for the company liabilities. If it is, only the director's share of the equity should be utilised and a solicitor should be engaged to properly document same.

• The non director spouse should not sign any documents pertaining to the company or its finances.

• Each spouse should own a policy of 'Life Assurance' on the life of the spouse.

• The amount of 'Life Assurance' coverage should, as a minimum,equate to the total value of assets owned by the couple.

• Real Property should be owned as joint tenants to enable same to automatically pass to the surviving spouse.

• Each couple's 'Will" should have a codicil providing that in the event that their partner (beneficiary) is bankrupt, the assets are to be left to another entity.  Legal advice should be obtained from a solicitor in regard to required changes to the 'Will' .

We recommend that small business persons obtain advice from their solicitor and accountant when formulating their asset protection plan. 

Contact your C & W Advisor to discuss your asset protection needs.