Ever heard the advice "keep your family home away from your business"? While this used to be standard (and simple) practice, today's reality is more complex.

Let’s break it down. 

Point 1: The traditional approach

Historically, business advisors would recommend keeping the family home completely separate from your business activities. It was as simple as that, no risk. For company directors, this often meant putting the home solely in their spouse's name.

But that doesn’t work now. Why? 

Banks and financiers have different ideas these days. They often require:

• Both parties on the property title

• Both names on the mortgage

• Access to both incomes for serviceability

Point 2: What happens if it ends badly? 

Consider this real scenario: A business owner had their family home 100% in their spouse's name for "protection". However, they ended up getting a divorce. During separation, this business owner discovered:

• They had no control over the property's sale

• They couldn't prevent the property being listed

• They were still fully liable for the mortgage

It has happened to me (Co-Director of FPSS) before. You want to hear more about my story in this video. 

Point 3: Understanding joint and several liability

This legal term means you're not just responsible for your "half" of the mortgage. If your partner stops paying, you're responsible for the entire amount. This can affect:

• Your credit rating

• Future borrowing capacity

• Personal stress levels

Point 4: What about family trust? 

Putting your family home in a trust isn't always the solution either. Consider:

• Loan accessibility challenges

• Potential land tax implications

• Complex trust structure requirements

• Increased bank scrutiny under anti-money laundering laws

Final Thoughts

There's no one-size-fits-all solution for protecting your family home. Your circumstances, including blended families and business structures, require a tailored approach.

Would you like help understanding your options? Contact us for a confidential chat.

Disclaimer: This is general advice. You will need to take specialist advice that takes account of your own personal circumstances.