The ability to protect your assets and overall wealth such as property and investments should be able to give peace of mind, especially living in a city such as Perth. However when business slowdown occurs, financially crippling lawsuits from creditors can become a sudden reality that can threaten these vital assets. This is where the importance of asset protection planning comes into play. Especially for entrepreneurs, Perth becomes a city of opportunities but also comes with a bleak reality that lacking a proper financial backbone like a structured strategy can make or break the business.

This guide will cover the crucial importance of financial asset protection planning as well as outlining steps you can take to ensure financial wealth protection.

Why Asset Protection Planning is Important

Nobody wants to dwell on worst-case situations, but the truth is, financial risks can originate from places you least expect:

Lawsuits (e.g., business conflict, personal injury lawsuits)

Creditors (if you're running into bankruptcy or debt troubles)

Relationship failures (divorce or business partner disputes)

Tax debt or ATO audits

Without asset protection planning, your investments, savings, and property may be vulnerable. The objective isn't to conceal assets—it's to work out how to structure your wealth in a legally compliant way so it is less open to claims.

Key Asset Protection Strategies for Perth Residents

1. Getting Your Business Organized Properly

If you're a business owner, trading as an individual places your personal assets at risk. Alternatively, you might want to:

Establish a trust or company (to keep business and personal assets separate)

Employ a corporate trustee (for added security)

Family trusts or discretionary trusts are often used by Perth companies to distribute income without having to keep assets safe.

2. Holding Your Property in the Right Vehicle

Property is a popular target for legal action. To secure your Perth property:

Buy investment property in company or trust names (not yours)

Use a self-managed super fund (SMSF) for tax-advantaged asset protection

3. Insurance as a Safety Net

While legal arrangements are useful, insurance is your first line of defence:

Public liability insurance (if you're in business)

Professional indemnity insurance (if you provide advice or services)

Home and landlord insurance (if you're a property owner)

4. Superannuation: An Asset Protected

Did you know? Property in superannuation (particularly SMSFs) is usually free from creditors (other than exceptions). Super is, therefore, an effective tool for asset protection planning.

5. Prenuptial & Binding Financial Agreements

If you're planning to marry or enter a de facto relationship, a binding financial agreement (BFA) can make it clear how assets will be split, lessening future conflict.

Common Mistakes in Asset Protection Planning

Many Perth residents make these errors, leaving their wealth vulnerable:

Waiting too long – Asset protection works best when set up before a problem arises.

Mixing personal and business finances – This can "pierce the corporate veil," exposing personal assets.

Relying only on insurance – Insurance helps, but legal structures provide stronger long-term security.

How to Start Your Asset Protection Plan in Perth

Assess Your Risks – Are you a business owner? Property investor? High-income earner?

Consult Experts – A Perth-based financial advisor, accountant, or lawyer can tailor a plan.

Implement Legal Structures – Trusts, companies, and SMSFs may be part of your strategy.

Review Regularly – Laws change, and so does your financial situation—keep your plan updated.

Final Thoughts

Asset protection planning isn’t just for the wealthy—it’s a smart financial move for anyone who wants to secure their future. Whether you’re a Perth business owner, investor, or simply want to protect your family home, taking proactive steps now can save you from costly legal battles later. If you’re unsure where to start, seek advice from a Perth asset protection specialist—or consult with the best accountant Perth has to offer—to create a tailored strategy that fits your needs.