How to Help Your Kids Buy Property—Without Helping Their Ex Too

Helping your kids into the property market is smart… but helping their ex at the same time is not.

The Bank of Mum and Dad is now the 9th largest lender in Australia.

Billions of dollars are being passed from parents to children… and it is now a large percentage of our business. Yet most parents do not realise that once money is gifted, it can be swept into the Family Court’s asset pool if a relationship ends.

That is why when clients come to us for advice, we do not just talk lending… we talk protection.

Here are 6 common strategies we use to help protect parents from losing their hard-earned money in a messy break-up:

Loan agreements

Treat the funds as a loan, not a gift. Have it documented, signed, and ideally show repayments. Even $100 a year demonstrates it is enforceable.

Caveat or registered mortgage on the title

Parents can lodge a caveat or register a mortgage over the property. This creates a clear legal interest in the title, ensuring their contribution is protected if things turn sour.

Equity pledge or guarantor loan

Instead of handing over cash, parents can pledge equity in their own property as security. This avoids gifting money outright and keeps ownership separate, while still giving their child the borrowing power they need.

Trust structures

Instead of your child owning the property directly, the trust does. This ring-fences the money and can even provide for grandchildren.

Binding financial agreements

The Australian version of a prenup. If one partner is bringing in more wealth, this formalises what happens if things fall apart.

Tenants in common

Not all ownership needs to be 50/50. Shares can reflect who actually contributed the deposit—critical when parents provide the capital.

The truth is… giving your kids a leg up is generous, but without the right planning, it can end up helping their ex instead of them. We guide families through these conversations every week—covering not just the loan, but the legal and financial safeguards that go with it.

If you are thinking of helping your kids, or if your parents are looking to help you, reach out, and we can ensure you cover all the risks.