Trusts continue to play a prevalent role in financial structuring arrangements for families, and are therefore encountered frequently in family law practice. The treatment of trusts by the Family Court has continued to be the subject of consternation in the family law profession, with ongoing tension between the often competing rights of third parties versus the ability of the Court to access trust assets for division between the parties to a marriage or a de facto relationship. It remains important to have a continued understanding of the Family Court's current approach to accessing trust assets for division between the parties, particularly following the recent High Court decision in Kennon and Spry [2008] HCA 56.

This paper is not an exhaustive exploration of all the implications of trusts in matters before the Family Court, nor all of the matters a practitioner must consider when approaching a matter where the parties have an interest in a trust. The paper will briefly recap the basic nature of trusts, how the Family Court has dealt with trusts in the past and the implications of the recent High Court decision of Kennon and Spry.

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