Asset Protection:

Our private clients understand that wealth generation and accumulation may be a long, arduous and risky process. It is therefore important to adequately protect your assets from third parties such as creditors, plaintiffs and competitors.  Our team of highly experienced private client lawyers understand the efforts and energy involved in obtaining assets and can assist in devising the appropriate strategies to ensure that your assets are properly protected.

One potential risk to the assets of a business owner may be from personal bankruptcy or insolvency of the business or businesses.  If you run your own business, there is a risk of insolvency and penalties if you trade insolvently.  For any number of reasons, you may be unable to pay your debts when they fall due.  This might subject you to creditor’s claims and an application potentially could be made to wind up your company and distribute any assets to satisfy your creditors’ claims.  In addition, a business failure may expose you personally if you have provided a guarantee or security over your assets. Creditors might also have a personal security interest under the PPSA. This is a security interest over personal property such as equipment, motor vehicles, furniture or appliances.  Upon personal bankruptcy, your personal property may be exposed and available to satisfy creditor claims. A qualified solicitor may be able to review and consider your situation and provide legal advice as to the appropriate strategies to provide you with, given your instructed level of asset protection.

Secondly, there may be a real risk from unpredictable and unfortunate events.  This might include injury or disease, natural disaster and accidents. Injury or disease may lead to substantial medical expenses, legal costs and costs to third parties.  An accident or disaster could lead to personal bankruptcy, particularly if you are not adequately insured, as assets may be irretrievably be destroyed or lost. You could potentially be required to defend litigation proceedings which could be costly, time consuming and incur the opportunity cost of being unable to attend to your financial and commercial affairs.  Proper legal advice from our integrated legal and financial practice may have regard to your situation and provide you appropriate options and strategies to mitigate the risk that assets are wasted or lost.

In addition, with the introduction of the Personal Property and Securities Act, it is now necessary to ensure that your security interest in any personal property, such as motor vehicles and lease equipment, is properly registered with the registry. If your interest is not properly registered or perfected, you risk losing your interest in insolvency and having limited recourse.  

If you need further legal advice on your matter, you may book an appointment with us by telephone on 02 9233 4048 or by email to info@navado.com.au.  

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Tax or Accounting Advice. It does not take into account your objectives, financial situation or needs or your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.