The ability to safeguard what you have is something indispensable in business, especially when a company runs into adversity. Asset protection is much more complex than simply deciding which things are untouchable. Most people are not ready for everything they will need to do to get it done. Fortunately, there are a few rules that can help guide business owners on how to cover their losses when the need arises.
Planning Ahead
The first rule is to start making plans to put assets out of harm’s way as soon as they get them. This is because liability claims can spring up faster than most think. There are many methods that owners can use to protect their effects before someone else lays claim to it, but there are precious few that can help them after the fact.
Failing to plan sooner than later often results in the loss of assets. Attempting to conduct asset protection after a claim arises would likely make things worse instead of better. This is because it makes the owner look like they are hastily shoving assets down, rather than securing something that is rightfully theirs.
Fallout of Tardiness
If a liability does not end up in an owner’s favor, a judge can do much more than undo the transfer of the asset so that an owner ends up with roughly what they had at the start. A decision can make the owner liable for the attorney’s fees of whoever raised the claims. This effectively removes filing for bankruptcy as a relief to keep the lawyers and the banks from taking absolutely everything.
Being proactive, and making the first move is the first thing business owners needs to learn when it comes to keeping as much of their effects intact. Still, there’s more to asset protection that being an early bird. Contact us today for all the information you need to know, from asset protection to estate planning. At McCullough & Sparks, we offer free consultation, as well.