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Steve if your son isnt making any repayments.and merely capitalising interest wouldnt the family.courts deem this to be a non commercial arrangement and then the wife argues it was merely a gift wrapped up to look like a loan.

Curious terry. What would happen if you held a property through a labuan trust and then divorced ? Would you have to go to labuan to sort it all out and therefore create issues for the partner making a lower settlement more attractive ? Wouldnt think the family court could enforce a labuan trust...