Protect a family loan from third parties

Provide money to your kids, without losing it if they get divorced.

You have worked hard to build your wealth and now you want to help your children take their next step – a home, a business, a better start in life. The concern is not whether to give; it is how to give in a way that keeps the funds protected. Because you have seen what happens when money is given informally: a relationship breakdown, a creditor claim, and the funds given with love are gone before they made a difference. We help you provide meaningful financial support to your children in a form that stays within the family, whatever life throws at them.

Help your children get ahead - without the risk

Providing financial support to your children is one of the most direct ways to make a difference in their lives. But a gift given without proper documentation is a gift that can be lost to a creditor, a family law dispute, or a future claim against your estate. We help you structure family financial support as a secured loan so the funds stay protected if something goes wrong.

What is the difference between a family loan and an outright gift?

An outright gift transfers ownership of the funds to your child with no strings attached – and no legal protection once the money leaves your hands. A loan creates a legal obligation to repay, which can be secured against your child’s assets. The practical benefit of documenting the support as a loan is that it gives you legal standing to step in and recover the funds if your child faces a creditor claim or relationship breakdown. The loan documentation creates a record that the funds are not solely your child’s property to be divided or pursued – they are subject to a debt owed back to you.

Can I register security over my child's assets to protect a family loan?

Yes. If the loan is secured by a Personal Property Securities Act (PPSR) registration, you hold a registered security interest over the relevant personal property assets. This means that if your child defaults, faces insolvency, or has a judgment entered against them, your registered security interest takes priority over unsecured creditors in most circumstances. If the loan is to be used for real property, a registered mortgage provides the equivalent protection over that asset. The right form of security depends on what the funds are being used for and what assets are available to secure against.

How does documenting a family loan protect against a relationship breakdown?

In family law property settlement proceedings, a documented loan to your child is a liability that must be taken into account – it reduces the pool of assets available for division. Without documentation, the funds are likely to be treated as an asset of the relationship rather than a debt. A well-prepared loan agreement, with consistent records of the arrangement as a loan rather than a gift, provides the evidence needed to ensure the funds are treated correctly in any property settlement.

What happens to a family loan when my estate is distributed?

How a family loan is treated on your death depends on how your will and estate plan address it. If the loan is not addressed, your executor may have an obligation to recover it from your child before distributing the estate equally – which can cause significant family conflict. A well-structured estate plan addresses whether the loan is to be forgiven, offset against that child’s inheritance, or recovered in full. Getting this right in advance prevents disputes between siblings at an already difficult time.

Protect your wealth from third-party claims

Ensure your family's long-term financial security

Help your children get ahead

Ready to protect what you give?

Speak with one of our experienced lawyers about structuring your family financial support the right way.

These days it's really hard for people to meet their everyday needs, let alone get ahead.

You want to help your children get ahead – a home deposit, business capital, or a financial safety net. But you do not want that money to disappear into a creditor’s hands, become part of a family law dispute, or end up benefiting someone you never intended to benefit.

We will advise on structuring financial support as a secured loan rather than a gift.
We will prepare a loan agreement and supporting documents.
We will advise on PPSR registration or mortgage security over real property.
We will ensure the arrangement is aligned with your broader estate plan.
We will document your intentions clearly to protect against future disputes.

Will your children be able to afford anything like the lifestyle that you now take for granted?

Your children are adults now, trying to establish themselves in a world where the cost of getting ahead keeps rising.

You have the means to help and you want to. But you have also watched what can happen when parents give money informally – a relationship breakdown two years later, and half the gift walking out the door in a property settlement. Or a business failure, and a creditor wiping out everything.

You want to be generous, but you want the generosity to actually reach your child. Not their ex-partner. Not a stranger with a judgment debt. Your child.

What's included in your family loan protection service

Leaving things to chance is not an option.

When financial support is given as an informal, undocumented gift, it loses all legal protection the moment it is transferred. Your child’s partner may later claim it is a joint asset in property settlement proceedings. A creditor with a judgment against your child can pursue those funds without restriction. And when your estate is later divided, the absence of any loan record means siblings may dispute how the transfer should be counted.

None of this is hypothetical – these disputes happen in families every year, and the absence of documentation is almost always at the centre of them. By the time the problem surfaces, it is too late to create the record that would have prevented it.

How we protect the support you give

Rather than gifting the funds outright, we document the support as a secured loan – a legal arrangement that keeps the money protected while still giving your child full use of it.

We prepare the loan agreement, advise on whether to register a security interest under the PPSR or take a mortgage over real property, and ensure the arrangement is properly executed. If something goes wrong in your child’s life – a relationship breakdown, a business failure, a creditor claim – you have the legal standing to step in and protect the funds. When the risk has passed, you can advance them again. The money stays in the family, exactly as you intended.

Your path to peace of mind

Three steps to protected family financial support.

Understand your goals

We take time to understand what support you want to provide, to whom, and what specific risks you want to protect against.

Structure the arrangement

We advise on the right loan structure and security - whether PPSR registration, a mortgage, or another appropriate form of protection.

Document and execute

We prepare the loan agreement and all supporting documents in a form that will stand up to scrutiny if the arrangement is ever challenged.

Experienced lawyers ready to protect the support you give your family.

We understand that your children need extra support to get ahead – and that it would be wrong to watch the wealth you have spent a lifetime building end up in the hands of someone you never intended to benefit.

We also understand the instinct to keep things simple and avoid making your children feel like they are being managed. Our approach is to structure the arrangement in a way that is protective without being intrusive – documentation that sits quietly in the background, only becoming relevant if something goes wrong.

Over the past 25 years, we have helped many successful people provide meaningful financial support to the next generation in a purposeful and protected way. Our lawyers include Accredited Specialists in Business Law and Fellows of the Society of Trust and Estate Practitioners.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Take the first step

Call us now to speak with one of our experienced lawyers about supporting your children in a way that keeps your wealth protected.

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