Why Protect Your Assets?

Why Protect Your Assets?

Safeguard Your Wealth from Common Financial Dangers

Two million Americans will go bankrupt this year and most lose everything they own. Few foresee their financial problems, and as a result they lose the opportunity to protect themselves once they run into financial difficulty. Unexpected events occur all the time, from job loss and unexpected medical bills to being victimized by a bad business deal. Life is a financial minefield, with danger lurking in every step.

Common financial dangers include:

  • Divorce. You can be happily married today, still you may someday divorce. You may go through several divorces. What would you lose in divorce? How can you prepare yourself financially for your next divorce?
  • Lawsuits. What does it matter whether one litigant sues you for $100,000 or twenty sue you for $5,000 each? Your assets are still in jeopardy for $100,000. So protect yourself against creditor claims and the possibility you may file bankruptcy. You can legally and safely fortify your assets to lose little or nothing in bankruptcy.
  • Tax Problems. It's easy to get into trouble with the Internal Revenue Service. Millions of taxpayers have huge bills. What would you lose if the tax collector knocked on your door?

These are only some of the dangers that can occur - others are out there. The financial minefield continues to expand and it is up to you to be proactive. Think defensively. Think realistically. Ask yourself when, not whether, you will encounter financial danger. You must be prepared!

Does Asset Protection Really Lawsuit-Proof Your Wealth?

Yes. But as with most things, that answer has several qualifiers: successful asset protection also depends on ifs:

  • It works if you protect yourself before trouble strikes.
  • It works if you use the right strategies and tools for your particular situation.
  • It works if you have the right professional advisor.
  • It works if you stay committed to continuously sheltering your wealth.

The ultimate purpose of any asset protection plan, of course, is to safeguard your wealth under a worst-case scenario – i.e. you are sued and lose. And the odds are that you will someday lose a lawsuit, so you need well-protected assets. You must assume that your asset protection plan will someday be put to this test.

Of course, even when you are judgment-proof you can’t easily ignore the problems from a judgment. A plaintiff’s lawyer can stubbornly pursue the even well-protected defendant. And a plaintiff might seize some assets because you can’t always protect every last asset. Some "loose change", for one reason or another, becomes exposed.

Frequently, the benefit of well-protected assets is realized only after the plaintiff wins a judgment and has exhausted their collection remedies. Until then, some plaintiffs won’t reasonably settle, despite assurances that the defendant is indeed judgment-proof. And every case has some settlement value, even when a plaintiff cannot seize the defendant’s assets. Nobody wants a judgment pending against them for twenty or more years. And a judgment creditor may possibly petition a defendant into bankruptcy. Nor will an adverse judgment help one’s credit rating. The ultimate success of an asset protection plan then is not whether the plaintiff recovered something.

Most defendants pay something to end their case. Our goal is not to have our client lose significant assets. That’s how we ultimately measure our success. We ask this one question: “What more could we – or anyone – have done to achieve a better outcome in this case?” That’s our litmus test. Our plans invariably pass that test. Our clients lose few assets to litigation. Very few!

Yes, You Can Lose Everything!

You may think that your wealth is safe and that you don't need protection. But don't delude yourself and accept reality — for every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!