No one in business today should put the family home at risk. This applies to both start-up businesses and existing businesses.

It is when a family business gets into financial difficulties and fails that risk of losing the family home and other personal assets can crystallise. An increasingly litigious environment combined with the failure of insurance companies (ie, HIH) increases that risk to the business owner.

Business owners should consider taking steps to put in place an asset protection plan. There are often simple and practical measures that can be put in place to protect the family home and other assets of the business owner in the event of financial difficulties. The key to successfully protecting the family home and other assets is to implement the measures as soon as possible. Financial difficulties (whether arising from lawsuits, unable to meet debt repayments or any other reason) are never expected but often occur to many people. Trying to put in place an asset protection plan or trying to restructure the affairs of a business owner when financial difficulties arise or shortly before they arise will be too late and will not be effective, thereby risking the family home and all other person assets of the business owner.

To find out more about implementing an asset protection strategy that suits your circumstances, please contact Darren Foeng of Hynd & Co Commercial Lawyers on 8223 6499.