Spouse Loan Agreement

Spouse Loan Agreement Book Cover
  • Spouse Loan Agreement

  • $385 includes GST

Spouse lending money to a spouse

Spouse Loan Agreement

Doctors, Accountants and business owners are at high-risk of bankruptcy. They are at risk of being sued and losing everything. In contrast, the stay at home parent, teacher or government employee is at low risk. It makes sense to have the family assets in your low-risk spouse’s name. A Legal Consolidated Loan Spouse Agreement works towards that goal. It is another important strategy to protect your family’s wealth.

Husband lends money to Wife – sign the Loan Agreement first

Putting all the family assets into the low-risk spouse is common. This is called the ‘Man of straw and women of substance‘ asset protection strategy. All assets go into your wife’s name. This better protects the family if the husband goes bankrupt.

But what happens if the wife then gifts money to the husband?

Do not gift money to the at-risk partner. That is silly. Instead, the wife lends the husband the money. This is via a legally enforceable Legal Consolidated Loan Agreement between spouses.

What if your husband goes bankrupt? You seek to get back the loan using the Loan Agreement. You at least get some of the money. Also, you can influence, as a creditor, whether your husband goes bankrupt or enters into a compromise.

Do a Spouse Loan Agreement on the back of an envelope?

In the movies, IOUs are often handwritten on a piece of paper. Sometimes instead of a Legal Consolidated Spouse Loan Agreement, someone does a ‘minute’. Both approaches fail. In Rowntree v FCT [2018] FCA 182 shows the additional care required to document even simple related-party transactions, such as loans. In this case, the taxpayer, a practising NSW lawyer, claimed he borrowed over $4m from his group of private companies. The Court said:

‘Mr Rowntree has not deliberately chosen to ignore the law. His evidence presented to the Tribunal suggests that he genuinely believed that there were arguments to support his view that a loan was in existence.

He failed. Only a legally prepared Spouse Loan Agreement satisfies the ATO, Bankruptcy Courts and Family Court.Spouse Loan Agreement

See a free sample of a Partner Loan Agreement

Press the ‘Start for free‘ button to learn about:

1. Spouse Loan Agreement – ready to sign
2. Legal Consolidated’s letter of advice.

Press the above “Sample” button to see a free sample of the Legal Consolidated Loan Agreement

Contact us for more legal advice on building the Spouse Loan Agreement

You are building your Loan Agreement between spouses on a law firm’s website. Telephone us for legal advice. We can help you answer the questions.

For other asset protection strategies see here.


1Who is the Borrower?

The Wife Borrower is the entity (human or company) who is going to receive the capital (e.g. money) from the husband lender.

2Who is the Lender?

The Lender (Husband) is the entity who is passing the capital (e.g. money) to the Borrower (Wife).
In this Spouse Loan Agreement, the person who is the Lender is lending the money and the person who is the Borrower is the person borrowing the money.

3What do I get?

Why is it better to prepare my legal document on a law firm’s website?
You are dealing directly with a law firm’s website, therefore you:

  1. Retain legal professional privilege,
  2. Legal Consolidated is responsible for the document
  3. Receive legal advice from us.

How do I build the Spouse Loan Agreement?

For free, start building and learning about the Spouse Loan Agreement
Read the free hints on every page
Check your answers on the Summary page
Telephone the law firm with any questions
Lock and Build your Spouse Loan Agreement
Type in your Credit Card details
The Spouse Loan Agreement, our covering letter and Tax Invoice are emailed to you within 60 seconds
Print and sign the Spouse Loan Agreement

You also receive an email containing our letter and the Spouse Loan Agreement:

Spouse Loan Agreement Document
Our law firm’s letter of advice on our law firm’s letterhead and signed by one of our Partners.

4I do not know how much I'm lending.

Sometimes you do not know the amount that you are lending your spouse. If you don’t know you can leave it as the default answer; “as lent from time to time”. This provides flexibility.

If you do know but are paying it in instalments, then put it all in as one figure.

Otherwise, just put in the total figure. Remember to put in the dollar sign.

5What if I don't have a payment date?

Sometimes you might not want to set a specific date in the Spouse Loan Agreement. You can leave it as the default answer; “payable on demand as demanded by the Lender”. This gives you flexibility.

If you want it all paid back on the one date, just enter that date in.

Word the Spouse Loan Agreement how you like. For example

1) “Payable in instalments of 10% per calendar month”

2) “Half to be paid on 21 September 2018, and the remainder to be paid on 21 September 2019”

3) “$100 to be repaid weekly for 10 weeks starting from 4 July 2018”

6What do I put in as the interest rate?

There are five ways you can answer this question depending on how you’d like to do it:

1) If you are charging your spouse no interest, put the word “Nil”

2) If you are not sure what the interest rate is yet, leave it as the default, which is “as demanded from the lender from time to time”

3) You can put in a flat rate, for example, “5%” (do not forget to put the % sign in)

4) Keep it variable, for example, “2% above the Commonwealth Bank interest rate”.

5) You can also use the inflation rate. Use the expression “calculated according to the percentage increase in the Consumer Price Index (all groups) for the average of the capital cities of the Commonwealth of Australia (as published from time to time by the Australian Bureau of Statistics or body that takes over that function)”.

Loan to a Company:

spouse loan agreement

Loan to a Parent:

spouse loan agreement

Commercial Loan Agreement:

Division 7a Loan Deed:

ATO Compliant Loan Agreement:

Loan to a Child:

Forgive Debt Agreement:


Spouse Loan Agreement

Loan to a Company: Loan to a Parent: Commercial Loan Agreement: Division 7a Loan Deed: ATO Compliant Loan Agreement: Loan to a Child: Forgive Debt Agreement: