Asset Protection Strategies for Family Businesses

Relevant For:

Family business owners seeking to protect their assets from legal risks and creditors.

Key Points:

• Minimise lawsuit risk by adhering to regulations, updating professional knowledge, and using expert advice.
• Maintain adequate insurance to protect personal assets from liability.
• Separate personal and business assets to safeguard them from each other's financial risks.
• Balance the cost of asset protection structures against the risk of being sued.
• Use related party mortgages and cautious transfer of assets for additional protection.
• For couples, consider owning the home in the low-risk spouse’s name for optimal protection and tax advantages.

Full Article:

Protecting your family’s wealth is essential, whether it involves your business, investments, or the family home. A key consideration when selecting a business structure should be asset protection, not just tax efficiency. Here’s a practical guide to safeguarding your assets from creditors, divorced spouses, and recalcitrant relatives.