Asset Protection
Asset Protection is an area of the law that is recently being rediscovered. It originated in the 1980’s, but it was not used much then. However, as our society has become more litigious, Asset Protection as such is being looked on more favorably and in more detail.
Creditors and Predators
If one gets into a financially difficult position, one’s assets are subject to being taken by the court system and given to others. There are two major classifications of people (or institutions) that may be in a position to take your assets: Creditors and Predators. Creditors can be anyone to whom you owe money, whether it is by a normal debt or as the result of a lawsuit or from bankruptcy. Predators, on the other hand, is just my way of talking about a divorcing spouse. As you probably know, with some exceptions, if a couple divorce in South Carolina their assets are commonly divided equally among the husband and wife.
Protecting your assets from Creditors and Predators
Asset Protection planning is a process of organizing the things one owns in advance to safeguard your assets from Creditors and Predators.
In advance means the Asset Protection must be done before there is a threat or hint of action by the Creditors or Predators. If action is not taken until after the Creditor or Predator get involved, the court system may “undo” the action on the basis that it was a fraudulent transfer. At Cutchin Law Firm, we will question you very closely concerning the possibility of a fraudulent transfer as we refuse to be involved in any such transaction.
Asset Protection can be applied to any assets, including a professional practice or an operating business.
To learn more
Asset Protection is a complicated and detailed subject in which no two situations are the same. For example, there is a major decision to be made when creating an LLC as to whether it should be a “term” LLC or an “at will” LLC. While this decision can very severely affect your Asset Protection, most people starting an LLC do not even know there is a difference between the two types.
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