Summer reads: Trusts, prenups and divorce - what you need to know
The New Zealand Herald is bringing back some of the best premium stories of 2020. Today we look at everything you need know about family finances.
Why NZ's love affair with family trusts could be coming to an end
New Zealand's love affair with the family trust could be comingto an end as families ditch the vehicle ahead of a major law change which will see the biggest shake-up of trust law in 60 years.
There are estimated to be somewhere between 300,000 and 500,000 family trusts in New Zealand - a high number relative to our population of five million.
From the end of January trustees will have to be compliant with new disclosure obligations - a move set to push up the cost of using a professional trustee - and will also have to notify individuals if they are a beneficiary of a trust for the first time.
For some families that means the cost of maintaining a trust may now outweigh the benefits of having it.
There are estimated to be somewhere between 300,000 and 500,000 family trusts in New Zealand. Photo / 123RF
Can the rich and famous get spousal support after a divorce?
Kelly Clarkson filed for a divorce from her husband Brandon Blackstock in June of this year. The couple share two young children. Their separation has been far from simple. Blackstock has reportedly claimed $426,000 in spousal support and $191,000 in child support per month.
Spousal maintenance and child support are commonly applied for and granted in New Zealand. However, it is uncommon to see a claim for such significant monthly sums.
Brandon Blackstock and Kelly Clarkson during the arrivals for the 25th Annual Critics' Choice Awards at Barker Hangar in January 2020. Photo / Getty Images
Don't let the family trust create a family feud
New Zealanders have voiced their concerns that the new trust laws coming in next year mean people will have to tell family members what they will inherit when they die.
Conversations about money can be challenging, but that's better than leaving the children to fight it out when you're dead. Photo / Getty Images
I think the prenup I signed was unfair. Can I challenge it?
It is common for couples to enter a prenup when one party enters the relationship with more assets than the other. They may want to protect their assets for children from a previous marriage or because it was inherited from their parents. A prenup allows parties to specify what property will be considered relationship property and what will be considered the separate property of each party.
So what happens if you sign an agreement that turns out to be unfair?
