Protecting Your Assets in a Lawsuit Happy World
You spent years building your business from scratch, and now it is finally profitable. Or maybe you toiled for years in your profession, climbed the ladder, and have finally command a position of respect and high income. The last thing you want to have happen after all your hard work is to lose it all in an instant. Protecting Your Assets in a Lawsuit Happy World
One of the unfortunate side effects of success is that there are many people looking to get a piece of your financial success. All it takes to lose everything you’ve worked so hard for is for one person to sue you and win in court. The frightening thing is that sometimes even an innocent mistake can cost you everything. If you have amassed substantial wealth, it is a must that you judgment proof them to prevent this from happening.
How Does Judgment Proofing Work?
Just as the name suggests, judgment proofing makes it impossible for any creditors to seize your assets. This is done by making it appear, on paper, that you have no assets for creditors to take over. One of the most rudimentary ways to judgment proof your assets is to transfer them all to your spouse or other trusted individual who will allow you to retain use and control of the asset. More sophisticated ways include the use of holding corporations and offshore accounts in countries that do not enforce U.S. judgments. Often, a combination of strategies will be needed if your holdings are quite large.
Another important way judgment proofing protects you is that potential plaintiffs are much less likely to sue you at all if they believe they will not be able to collect any money after getting a judgment against you. This one step can also save you money, since it is often very expensive and time-consuming to defend against lawsuits, even frivolous ones.
ProAdvocate Group Can Assist You With Judgment Proofing Your Assets
If you have a large amount of assets, you need the assistance of experienced, knowledgeable professionals. Contact us today for help in protecting your hard-earned wealth.