Published on 01 Dec 14
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Becoming a partner of a law firm or a director of an incorporated legal practice is a notable milestone in a legal career, and can be greatly rewarding both professionally and fi nancially. It opens up opportunities to accumulate significant wealth, but also exposes the appointee to significant risks and responsibilities. Structuring one’s affairs to minimise exposure to one of those risks, namely, bankruptcy, is regarded as essential for all partners, medical practitioners and company directors, both on initial appointment and subsequently, whenever one’s circumstances change. Asset protection is an integral part of tax-effective structuring and estate and succession planning.
This article outlines how bankruptcy laws operate in Australia, explains what assets are exposed to creditors’ claims, and suggests steps that partners, medical practitioners and company directors can take to protect their wealth from creditors’ claims and protect their lifestyle from bankruptcy.