You never want to co-own an asset such as a vehicle, boat, or plane. Both the owner and the driver are liable in an accident so for example if you own any of these assets as husband and wife both spouses would be sued if there was ever an accident. Or if these assets are titled to your main business, then both you and your business would be liable in an accident. The objective with protecting your assets is to personally insulate yourself from liabilities which could be caused by the asset as well as insulate the above listed assets from any judgements against you. Even if the asset itself is not your most valuable asset, these assts can expose you to personal liability.
Your personal vehicle should be titled only to the primary driver individually. This will limit the exposure to one party (only the driver) vs multiple parties. Additionally, you may want to title other risky assets such as boats and planes to a separate entity such as a Limited Liability Company to better protect you. Since the LLC is considered a legal entity separate from its members, any liability caused by the risky asset will not carry over to the individual owner. Vice versa, if the individual is sued personally, the assets in a separate LLC are protected.
If a judgment is imminent it is usually enough to refinance and the strip the equity from a vehicle, boat, plane, etc. to avoid losing it to the judgement. Additionally, we would recommend that our clients purchase an umbrella liability. Title your asset(s) to an LLC and place liens against it or lease your vehicle to yourself through the LLC.
Contact The Presser Law Firm, P.A. for a complimentary preliminary consultation with one of our experienced attorneys today.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com