The global real estate and economic crisis has, very predictably, led to a proliferation in foreclosures, bankruptcies and commercial disputes. Fairly or not, entire lifetimes of work and savings are being wiped out at an unprecedented pace. Yet, in our experience, most individuals and businesses have their assets and operations owned and organized in such a way as to leave them dangerously exposed to catastrophic legal liabilities, employee malfeasance and predatory lawsuits by claimants looking for deep pockets.
Fraudulent transfer laws, conversion laws and bankruptcy rules make it very difficult to protect assets shortly before, or during a legal proceeding. Instead, individuals and businesses with significant assets should protect themselves in advance by taking a close look at changing the way they own their assets and operate their businesses.
Doing something as easy and inexpensive as owning an asset with a spouse, or switching to an LLC, can save countless amounts of money and aggravation in the future. Other, more complex, solutions such as leveraged accounts receivable, annuities, spendthrift trusts, or life insurance might be appropriate as well.
At the Business and Real Estate Law Group we have years of experience in tailoring client-specific asset protection and business plans.