A respected business consultant based in California, Kevin Wessell advises clients on matters pertaining to real estate investment and asset protection strategy. As a keen advocate of financial independence, Kevin Wessell has authored several books, among them “Build Your Financial Castle” and “Asset Protection Workbook.”
While several complex forms of asset protection exist, there are also a few very simple things that you can do to reduce the risk that your assets will be affected following a liability claim. If you are married and the relationship is solid, you may choose to transfer your assets into your spouse’s name. Should your marriage end in divorce, however, this carries the risk that you will lose them altogether. Alternatively, you may choose to make large contributions into a pension plan. Observe the laws regarding life insurance, annuities, and homesteads in your state of residence to identify ways to protect your income.
Insurance policies known as umbrella policies exist, designed to protect individuals against personal injury claims that exceed the standard amount of coverage seen in vehicle and home policies. Finally, avoid the combination of personal and business assets, so that should business related problems arise, your personal assets remain unaffected.