Divorce puts your business income and separate property under the gavel in a property battle. By placing your business and property into a trust that you control, guarantees the protection of those assets in a divorce.
Divorce is a leading cause of asset distribution - today we're talking about the most protection you can get from a divorce property battle. Most people who seek divorce asset protection do so when problems arise in the marriage, when troubles arise or after being served with divorce papers. There are tools that can provide protection under this scenario. Under the best circumstances, transferring the ownership of your separate property, including your business, into an asset protection trust prior to tying the knot nearly guarantees the protection of your assets even through a gruesome divorce. Having a divorce asset protection plan essentially voids the entire separate vs. marital property battle before it has a chance to begin.
Discussed in a Forbes article (http://www.forbes.com/sites/jefflanders/2011/04/19/divorce-proof-your-business-even-if-youre-still-single-or-happily-married/) are methods used to protect your business against a future divorce. The establishment of a foreign asset protection trust is the #2 legal technique discussed, second to a prenuptial agreement. The author also does a fine job of expressing the need to take protective measures well in advance of the need, or likelihood of needing asset protection. Divorce, business partner disputes, medical malpractice and insurance coverage limits are some of the top wealth busters going. Here's one that you can avoid from the get-go. Ideally, you would take this course of action before you are married. Setting up a foreign asset protection trust to protect your finances from Divorce can be done at any time, however planning measures taken years in advance offer the most protection and peace of mind.
Divorce is more likely to happen to any of us than a major car accident. Imagine having a divorce insurance policy where your assets and business never make it onto property battle playing field. Pre and post nuptial agreements are not water-tight. Not all states recognize them and they are often challenged, offering very little certainty.
Certainty, in this case, comes in the form of an asset protection trust. By setting up an asset protection trust and transferring property ownership into the trust, you legally shielded those assets from any future liabilities. This includes a future divorce, business partner dispute, auto accident or lawsuit.
There are many ways to setup a trust and yours should be created by a reputable adviser with the experience to include the right protective provisions without voiding the trust. When you have a foreign asset protection trust, the best way to handle the day-to-day management is through a foreign LLC. The trust owns 100% of the foreign LLC and you are the initial LLC manager. The bank accounts are titled to the LLC. The LLC is a control instrument. As the LLC manager, you can have significant control of trust assets and signature/wire authority of the LLCs offshore bank account. When the "bad thing" happens, the licensed, bonded trustee can step in as LLC manager to protect your assets.
When you have a properly established foreign asset protection trust, with a privately owned offshore LLC and bank account, you have the strongest protection from lawsuits and divorce available. We specialize in drafting offshore trusts with special protective provisions that are specifically written to offer you the most flexibility, control and asset protection. We form LLCs and incorporate worldwide and offer offshore bank accounts with lower initial deposit requirements and in less time.