Whatever wealth you’ve managed to accumulate, chances are you’ve worked hard for it, and we at DCDM Law Group want to help you keep your assets safe. If you’re concerned about preserving your financial health, then now is the time to act to protect what you have. Waiting until action has already been taken is not only risky — many asset-protecting actions, such as transferring funds or gifting money to family members, become illegal after you’ve lost a lawsuit or have become aware that one is on its way.
What You Can Do Now
Asset protection walks a fine line: protecting your assets from creditors and lawsuits, while at the same time being sure not to violate any laws that protect the interests of the creditors. Here are some tips on how to protect your assets before they are in immediate danger:
- Buy insurance. It may seem obvious, but many people forget that a good insurance policy is the first line of protection for their wealth. Malpractice insurance protects your professional actions, while homeowners’ insurance may include a clause on injuries which occur on your property, and the injured party’s ability to sue. There are dozens of types of insurance to suit your specific situation, but the point is that if you have sufficient coverage, then the insurance company will step in and deal with the problem, and offers important protections.
- Know your exemptions. Even if you find yourself filing for bankruptcy or in a similarly difficult situation, some of your assets will be protected from collection under law. The extent of these exemptions varies from state to state, but they generally include life insurance policies, some retirement funds, and home equity (referred to as a homestead exemption).
- Understand your business liability. If you are an entrepreneur or work as part of a partnership or other small business, it is vital that you understand where ownership and liability lie. In a general partnership, be aware that your assets could be jeopardized in a claim against your business partner, even if it has nothing to do with your work together. Similarly, depending on the specific nature of your work, a limited partnership or other business entity could separate your personal assets and protect them from becoming involved in issues involving your business.
Thinking Ahead: Asset Protection
If asset protection has been on your mind, then the best way to move forward is to sit down with a skilled attorney who can help you determine what strategies may be most suitable for your current situation. Whether your concerns are associated with preserving assets for your children or other heirs, you have worries about an impending divorce, or you are a professional who needs to limit liability, a Pasadena asset protection attorney at DCDM Law Group has the years of experience necessary to shed light on your situation and to guide you through the decision-making process. It isn’t easy to know how to best protect what you’ve earned for yourself and for your family, so let us help. Give us a call to talk about your options today.