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Supporting Your Children Financially: Ways Parents Can Help Safeguard Their Support


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As parents, we want the best for our children, and sometimes that means providing financial assistance when they need it most. However, concerns about protecting this money, especially from relationship property disputes, is something I often come across. There are a number of different ways parents can lend or gift money to their children during their lifetimes while considering measures to safeguard these assets.


  1. Gifting Money

One straightforward way to help your children financially is through gifting. You can gift money to your child at any time, and it’s theirs to use as they see fit including putting it towards a property or a new business. However, it’s essential to document this gift in writing, specifying that it is a gift, not a loan, to avoid potential disputes in the future. A risk of this is that as the money is theirs, it could become relationship property if their spouse or partner benefits from the gift.


  1. Loans with Formal Agreements

If you want to ensure that the money you lend to your child is paid back, consider setting up a formal loan agreement. This legal document outlines the terms and conditions of the loan, including the repayment schedule (if any) and any interest involved (with could be none). In case of a relationship breakup, this agreement can help protect the loaned amount from being considered relationship property.


  1. Family Trusts

Establishing a family trust can be a useful way to provide financial support while protecting your assets. In a trust, you can specify how funds should be distributed to your children. This allows you to control the timing and amount of financial assistance. It also offers some protection from relationship property disputes, as trust assets generally do not fall under this category.


  1. Parental Loans to Buy Property

If your child is looking to buy a home, you can provide a loan to help with the purchase. To safeguard this loan, it’s crucial to establish a formal loan agreement. Additionally, consider registering a mortgage against the property, which provides you with a legal claim to the property in case the loan isn’t repaid.


  1. Education Funds

Contributing to your child’s education is an invaluable gift. Consider setting up an education fund or contributing to an existing one. By directly paying educational expenses, you provide support without the risk of relationship property disputes.


  1. Regular Financial Assistance

If your child needs ongoing financial support, consider providing regular contributions to their living expenses. While this isn’t an asset transfer, it helps alleviate immediate financial burdens. Document these contributions to ensure clarity and avoid future disputes.



Supporting your children financially during your lifetime is a loving gesture that can set them up for a brighter future. However, it’s essential to consider the potential impact of relationship property laws when lending or gifting money. Formal loan agreements, family trusts, and clear documentation can help protect your contributions and ensure they benefit your children as intended. Consult with legal and financial professionals to explore the best strategies for your unique circumstances and ensure a secure financial future for your loved ones.


If you require specific advice around this, then please get in touch or contact a lawyer for legal advice. There are many options, and the right one for you will depend on your personal circumstances.