In a litigious society, any business or individual with a sizeable net worth has a veritable target on their back. By protecting assets through legitimate means, you can lower both the risk of litigation and the risk of losing everything in the event of an adverse judgment.
Earning money is great. Protecting what you’ve earned is even better. It is an unfortunate reality that lawsuits often target what is perceived as the ‘deep pocket.’ This is because winning a lawsuit is only half the battle – a plaintiff then needs to collect on its judgment, and a defendant that is perceived as ‘judgment proof’ is far less attractive than one perceived as having an excess of easily-accessible assets.
Wealth protection is a proactive process that can range from simple (such as placing monies in the right type of joint account with a spouse) to complex (such as changing a corporate structure to allocate different aspects to different companies under your control). Wealth protection requires planning and knowledgeable counsel well in advance of trouble brewing… don’t wait until you’ve actually been sued for something as attempting wealth protection at that point may be a lost cause. It is far better to make a plan now and stick with it. Wealth protection is just one of many tools available to give you an advantage in future litigation by dissuading your opponent from suing you.