It’s a step many New Zealand business owners are taking, particularly as their operations grow, their personal assets increase, or they begin thinking about the next generation. A trust can help safeguard your business from unexpected personal risks and provide a clear structure for future decision-making.

According to Corban Revell Solicitor Krishnil Singh, a trust isn’t just about asset protection, it’s about planning ahead. “A trust can give you peace of mind. It creates a legal structure that helps protect your business from personal claims, smooths the path for succession planning, and reduces the chance of future disputes among family members or shareholders.”

Key benefits of using a trust

If your business is held in your personal name, it can be vulnerable if things go wrong in your private life, such as a relationship breakdown, a business dispute, or debt recovery proceedings. By transferring ownership to a trust, the business is no longer part of your personal asset pool and is therefore harder for creditors or claimants to access.

Trusts can also be used when business owners want to hand over control gradually, keep the business in the family, or make sure it continues operating even if they’re no longer involved.

“Trusts can work well for clients who are thinking seriously about succession and passing the business on to children, co-owners, or other beneficiaries,” Krishnil explains. “It gives them a mechanism to manage that transition smoothly.”

Are there downsides?

While the benefits can be significant, it’s important to understand the responsibilities. A trust must be properly set up and actively managed. That means keeping records, holding trustee meetings, carefully ensuring you comply with your trustee obligations, and making decisions in line with the best interests of beneficiaries, not just what’s convenient for you.

You also give up legal ownership of the business. That can feel like a big step for hands-on founders who are used to being fully in control.

“It’s something we talk about carefully with clients,” says Krishnil. “There are definitely situations where a trust adds unnecessary complexity. But in many cases, the advantages, particularly around protection and certainty, outweigh the disadvantages.”

Timing is everything

One of the biggest mistakes people make is waiting too long to act. If there’s already a relationship dispute, a family disagreement, or legal action underway, it may be too late to transfer the business to a trust.

“The best time to set up a trust is when things are calm and when you’ve got time to think clearly and plan properly,” adds Krishnil. “It’s a proactive step that protects not just the business, but the people who depend on what we call a ‘blue sky’ day – when there are no issues and no known problems on the horizon.”

Wondering if a trust is right for your business?

Contact Krishnil Singh for advice and guidance.

The post Thinking About Putting Your Business in a Trust? Read This First appeared first on Corban Revell.

“Currently, disputes around $30,000 often move from the Disputes Tribunal into the District Court,” explains Ritvik Roop, Litigation Solicitor at Corban Revell Lawyers. 

“However, the Tribunal’s jurisdiction is set to increase to $60,000, so soon this threshold may change. Above that, or if the matter is especially complex, you may even be in the High Court. Knowing these thresholds early helps you decide your next move.”

Understanding the New Zealand Landscape

New Zealand offers several forums for recovering a debt, each with different rules and costs:

• Disputes Tribunal: handles claims up to $30,000. Lawyers cannot represent you at the hearing, but legal advice beforehand strengthens your case.
  • ⚠️ Recent Legislative Update: As noted, Disputes Tribunal’s financial jurisdiction is set to increase from $30,000 to $60,000. The bill has passed its first reading in New Zealand Parliament. This means more disputes will be handled faster and more affordably, helping protect business cash flow.
• District Court: for claims above the Disputes Tribunal limit (currently $30,000, set to rise to $60,000). Lawyers can act for you and seek costs.
• High Court: for claims over $350,000 or matters involving complex commercial issues, multiple parties, or urgent injunctions.

The right forum isn’t just about the dollar figure. Urgency, the debtor’s location, the strength of your contract, and the type of relief you need (like asset freezing or liquidation proceedings) all play a role.

Before You Take Legal Action

Even when court action is possible, judges expect you to show that you tried to resolve the dispute. That means:

• Clear documentation – contracts, invoices, emails and payment terms proving the debt exists.
• Formal demand – a professionally drafted letter or statutory demand for companies, setting a deadline and warning of legal action.
• Negotiation or mediation – a structured conversation or mediation session can sometimes bring faster payment than litigation.

“A well-crafted demand letter often succeeds where repeated phone calls fail,” says Ritvik. “It signals that you’re serious and gives the debtor a final chance to settle before costs escalate.”

Recoverable Costs

Successful claimants can usually recover:

• Principal debt
• Interest (if your contract allows or under the Interest on Money Claims Act)
• Legal costs awarded at the court’s discretion

Accurate contracts make a difference. Clear payment terms and clauses about interest or costs strengthen your position.

Why Legal Guidance Matters

Court processes are technical, with strict filing deadlines, service rules, evidence requirements, and enforcement options. Corban Revell’s Litigation team helps you:

• Prepare airtight demand letters and statements of claim
• Choose the right forum and strategy for your debt size and complexity
• Enforce judgments using charging orders, garnishee orders, or company liquidation

“Many clients come to us after trying to do it alone and hitting roadblocks,” Ritvik notes. “Getting advice early often saves both time and money.”

Keeping Your Business Protected

Strong contracts, clear credit terms, and regular credit checks reduce future risk. Corban Revell can review your agreements through our Commercial Law team and help build procedures that protect cashflow long before a payment is missed. 

But even with these measures in place, overdue payments can still occur. When they do, our  Litigation team can:

• Advise on the best forum: Disputes Tribunal, District Court, or High Court
• Draft demand letters that prompt settlement
• Represent you in court and enforce judgments
• Review contracts to strengthen future protection

Contact our team or reach out directly to Ritvik Roop for a tailored debt recovery strategy.

The post Unpaid Invoices? Here’s When to Take Legal Action appeared first on Corban Revell.

A co-ownership agreement is a legally binding document that outlines how you and your business partners will operate together. It sets the rules around ownership, responsibilities, profit sharing, and what happens if someone wants to leave. Without it, even small misunderstandings can spiral into serious legal and financial headaches.

Define Ownership, Roles, and Responsibilities Early

At the heart of any co-ownership agreement is clarity. It should answer:

• Who owns what? Clearly state how much each partner is contributing, whether it’s cash, assets, IP, or sweat equity.
• What does each partner do? Outline each person’s role in the day-to-day running of the business.
• How are profits and losses shared? Specify how you’ll divide earnings and absorb any losses.

Agreeing on these details upfront helps avoid conflict down the track, and gives everyone a shared understanding of what they’re signing up for.

Get Decision-Making Right From the Start

Equally important is how decisions get made. Does every partner get an equal say? What if one of you owns a larger stake or brings in most of the revenue? And what happens when you disagree?

“Having a process for making decisions and resolving deadlocks is essential,” says Krishnil Singh, Solicitor at Corban Revell. “If you don’t agree on how votes work or what happens if you can’t reach a consensus, the whole business can stall at a critical time.”

Well-drafted co-ownership agreements often include processes for voting, mediation or arbitration – tools that protect relationships and avoid expensive legal disputes later on.

Plan for the Unexpected

Too often, people avoid thinking about worst-case scenarios. But what if a partner wants to exit the business, is no longer able to contribute, or passes away?

“A good agreement will include buy-sell clauses or rights of first refusal so you’re not caught off guard,” Krishnil explains. “It keeps ownership within the trusted group and protects the business from outside interference.”

Understand the Risks and Get the Right Advice

It’s not just about profit. Co-owning a business means you could also be on the hook for debts, liabilities, or legal claims, depending on how your structure is set up. Understanding those risks before you begin is critical.

“Every business is different,” Krishnil adds. “There’s no one-size-fits-all agreement. Tailoring the document to suit your business model, your goals, and your partners is what makes it work in the long run.”

Thinking About Going Into Business With a Partner?

Setting up a clear co-ownership agreement is one of the smartest things you can do. It protects your investment, defines expectations, and gives your partnership the structure it needs to succeed.

Need guidance on a neighbourhood dispute?

Contact Krishnil Singh.

The post Going Into a Co-Ownership Agreement? Here’s What Every Business Owner Needs to Know appeared first on Corban Revell.