How Do You Protect Your Assets When You’re the Target of a Lawsuit?

Once the case is initiated, it becomes very challenging to safeguard one’s property. Any further attempt to transfer or to remove any of the assets can be considered as fraudulent conveyance which is prohibited. It is advisable to develop asset protection measures as early as possible before the occurrence of a legal case.

The best method of asset protection usually involves the use of legal entities including trusts, limited liability companies, and adequate insurance. It is possible to have irrevocable trusts and seek advice from IP lawyers to ensure that there is good protection for the assets, especially the intellectual property.

As in many countries, a trust in Australia can provide at least some measure of shielding of assets in the case of a divorce, but it is not impregnable. There are decisions of the courts that allow them to pierce through the trusts and look at the property within, particularly if the court feels that the trust was created to prevent an equal division of property. Outside help like lawyers or more specifically, intellectual property lawyers is important when it comes to the proper formation of the trust.