Kennon v Spry: The Latest on Family Trusts & Family Law

02/12/2025 9 min Temporada 1 Episodio 22
Kennon v Spry: The Latest on Family Trusts & Family Law

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Episode Synopsis

Kennon v Spry — What It Means for Family Trusts & Property Settlements Discover why the landmark High Court case Kennon v Spry changed the way Australian courts treat family trusts during divorce and separation. In this video we unpack how and when discretionary-trust assets can be included in the marital property pool — and why that matters for couples, families and financial planning. 📌 What you’ll learn How control and benefit over a trust can make its assets part of the “property pool” subject to division. Why attempts to restructure a trust during separation may be reversed under Family Law Act 1975 (or subsequent amendments). When trust assets — even if not fully included in the property pool — can still be treated as a “financial resource” relevant to a settlement.Why family law mediation often makes more sense than litigation for resolving trust-related family law disputes. ⚖️ Why it matters For many Australians, placing assets in a family trust has been viewed as a form of asset protection. But Kennon v Spry showed that when one spouse has effective control and there is a realistic potential benefit, the trust may be treated like marital property — radically shifting the financial stakes of separation or divorce.  If you or someone you know is dealing with a family trust and separation, it’s crucial to understand these legal principles — and consider mediation as a constructive, cost-effective alternative to litigation.Need Mediators ? Contact the team at Mediations Australia. This podcast has been produced by Law Firm Marketing Experts, Practice Proof