Many families in Singapore, Malaysia and Indonesia send children to Australia to study. Many of those children stay, marry or form de facto relationships, and some later separate. When they do, Australian family law can reach much further into the family’s wealth than parents and their advisers expect.
How far an Australian court can reach
Worldwide property. Once an Australian court has jurisdiction, it considers all property of both parties, wherever it is located.
Trusts the heir controls. Where a party effectively controls a discretionary trust, for example as trustee and appointor, the court can treat the trust’s assets as that party’s property, even though no distribution has been made.
Trusts the heir does not control. An interest in a parent’s trust is often treated as a “financial resource”. It is not divided directly, but it can tilt the division of the rest of the property in the other spouse’s favour.
Third parties. The court can make orders binding third parties, including trustees and companies, in some circumstances. Family members and trustees can be joined to proceedings and required to produce documents.
Gifts and loans. Money from parents to buy a home is usually treated as a contribution by the receiving spouse unless it is clearly documented as a loan, and even then its treatment is not certain.
De facto relationships generally give rise to property claims after two years of living together, or earlier if there is a child.
The property provisions were significantly amended in 2025, including new considerations around economic and family violence and children’s housing needs. Older advice should be checked against the current law.
Protecting family wealth in advance
Binding financial agreements. A couple can agree before or during a relationship, or after separation, how property will be divided. The agreement is binding only if each party receives independent legal advice and strict formal requirements are met. A poorly made agreement can be set aside, so these need careful drafting and timing — well before a wedding, not the week before.
Control provisions of family trusts. Consider who holds the appointor and trustee roles when an heir marries or moves to Australia. Changing control after separation can itself be challenged.
Documented loans. Where parents fund a purchase, a properly documented and, ideally, secured loan gives the family a stronger position than an informal gift.
Separate holdings. Keep inherited and family assets separate from assets the couple builds together.
Australian Wills. Consider how inheritances to an heir will be held, for example through a testamentary trust.
When separation happens
Cross-border separations raise questions of forum: whether to proceed in Australia, Singapore or elsewhere. Moving early, but with advice, matters. Many of these disputes are best resolved by mediation or arbitration, which are confidential and can deal with assets in several countries at once. I am a Family Dispute Resolution Practitioner and Family Law Arbitrator, and mediate in English and Mandarin.
For trustees and family offices, the immediate steps are to preserve documents, avoid unusual distributions or restructures, and get advice before responding to any request for information.
Refer a matter. For confidential advice on protecting a family’s Australian exposure, or when an heir in Australia is separating, contact Justin Chua.
This article is general information only and is not legal advice.
Related reading: Prenuptial Agreements for Wealthy Families, prenuptial (binding financial) agreements in more detail.
More notes for private bankers, trustees and family offices: For Private Banks, Trust Companies and Family Offices.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal advice.
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