Kennon v Spry: The Latest on Family Trusts & Family Law

Kennon v Spry — What It Means for Family Trusts & Property Settlements 

Discover why the landmark High Court case Kennon v Spry changed the way Australian courts treat family trusts during divorce and separation. In this video we unpack how and when discretionary-trust assets can be included in the marital property pool — and why that matters for couples, families and financial planning. 

📌 What you’ll learn 

• How control and benefit over a trust can make its assets part of the “property pool” subject to division. 
• Why attempts to restructure a trust during separation may be reversed under Family Law Act 1975 (or subsequent amendments). 
• When trust assets — even if not fully included in the property pool — can still be treated as a “financial resource” relevant to a settlement.
• Why family law mediation often makes more sense than litigation for resolving trust-related family law disputes. 

⚖️ Why it matters
 
For many Australians, placing assets in a family trust has been viewed as a form of asset protection. But Kennon v Spry showed that when one spouse has effective control and there is a realistic potential benefit, the trust may be treated like marital property — radically shifting the financial stakes of separation or divorce. 
 
If you or someone you know is dealing with a family trust and separation, it’s crucial to understand these legal principles — and consider mediation as a constructive, cost-effective alternative to litigation.

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