Great Ways to Protect Your Assets Legally
Typically, lawsuits are not filed against individuals with only a few assets, but those with deep pockets. If you are one of those people who have substantial assets or are suddenly given the opportunity to make money, there are several money strategies that you can consider to best protect your wealth against lawsuits and creditors.
Consider separating your assets and keep it that way.
Depending on where you live, depositing your money into a joint account with your spouse would make it instantly become half his or hers. While this is not an issue for some people, it could pose a problem for others. For instance, if you have children from a previous marriage and commingle an inheritance from your new spouse, they might get less than you expect by the time of your demise. This problem could even get worse if you are planning a divorce.
Increase your liability insurance coverage.
Of course, your primary defense in lawsuits would be insurance, so call your insurance agent and work on increasing your policy’s liability limits. In doing so, make sure you are covered for an amount that at least equates your new net-worth.
Make informal partnerships official.
Keep in mind that partnerships could be ticking time bombs for your business, because like joint accounts, you will also be held responsible for your partner’s actions, where a lawsuit against a partner can put your assets at risk. If you and a friend have some kind of informal agreement for a partnership, your personal assets can be in jeopardy in the event that your partner is involved in an incident on his way to a client.
A business or sudden wealth opportunity is truly great in life, but only if you are able to keep it. Do not let it get stripped from you by considering the strategies mentioned above. Now, you will be able to sleep better knowing that your assets are being well protected.