Some people work for years to acquire impressive amounts of personal assets, and then find they’re gone almost instantly due to unplanned circumstances. Fortunately, there are several ways you can be proactive to avoid the same outcome.
Increase Liability Coverage
Personal assets can be seized during litigation. Therefore, the ideal course of action is to safeguard yourself against lawsuits, especially at your residence. Begin by calling your insurance provider and discussing increasing your liability coverage.
It’s also important to control the environment as much as possible. For example, if you live in areas that get heavy snowfall, keep your walkway well cleared. That way, it’s less likely a person will slip and fall, then sue you for injuries.
Keep Assets in an Account That’s Just Yours
As people get married or enter into serious long-term relationships, they often start using joint bank accounts. In many cases, that arrangement is hassle free. However, trouble could obviously result during relational strain.
Talk to your legal advisor or accountant if you are concerned. In a worst-case scenario, keeping personal assets in a joint account may mean you have to split them with a disgruntled partner.
Create Business Entities When Necessary
Perhaps some of your assets have come from part-time work done as a sole proprietor. If your income from those activities is lucrative, shield your assets from potential lawsuits by creating a corporation or limited liability company.
If you continue to just operate as a sole proprietor rather than creating a separate business structure, personal assets are at risk if you are sued. A lawyer with a business law background could be a great resource in recommending which type of structure is best for you to set up.
These are just a few ways you can be smart about making sure your personal assets are well protected during unexpected circumstances. When you think ahead, it’s more likely you’ll be able to hold onto what’s yours unless you decide to relinquish it.