Updated: Apr 21
What Is Asset Protection In California?
Asset protection assures that your investments, assets, and estate will not be harmed due to any unforeseen circumstances. After all, there's no way of knowing what happens with you, your business, or your family.
Here's a guide to what asset protection is, how it works, and what your possible options are.
Asset protection is a broad word that refers to securing your assets before they are lost or damaged. In short, you'll want to make sure your assets stay with you or the individuals you intend to pass them on to before you face a lawsuit, divorce, or other legal issues.
Here are a few reasons why people seek the advice of prescreened Norwalk Estate Attorneys:
Protect your assets from your spouse and other family members. In the case of a divorce, you'll want to prevent your assets from being taken by or assigned to your current spouse. In this situation, asset protection must be accomplished prior to the initiation of divorce proceedings.
You can safeguard your assets by negotiating a prenuptial agreement with serious thinking and consideration before marriage. A postnuptial agreement can be utilized for the same purposes if you're already married.
Pre and post-marital agreements can also be used to secure assets for future beneficiaries, such as children from a previous marriage. Domestic asset protection trusts can also distinguish between each spouse's financial and asset interests, as well as their combined property.
Protect your assets against creditors. Your creditor can obtain a court judgment against you if you do not pay your debts. As a result of such a judgment, liens may be placed on your property. Legal techniques to protect your assets from creditors include the formation of a limited liability corporation, a family limited partnership, or an asset protection trust.
If you develop an asset protection strategy appropriately before going into default, you can legally shelter certain assets from creditors' claims without committing tax evasion.
Protect your assets from being taken away in a lawsuit. Asset protection can also aid in the protection of your finances and assets from legal action. Some types of property can be protected in the case of a lawsuit by structuring funds, real estate, and other assets in a way that reduces their vulnerability to litigation and court orders.