Unfortunately, there is no way to avoid the possibility of being sued altogether. However, there is a way to reduce the risk of a devastating lawsuit and protect your assets.

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Lawsuit asset protection refers to legal techniques that protect a person’s property from potential creditors, including a divorcing spouse. Asset protection planning ranges from simple devices, such as opening an IRA account, to more complex arrangements, such as funding an irrevocable beneficiary-controlled grantor trust.

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Lawsuit asset protection planning typically involves one or more of the following:

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• Obtaining appropriate and sufficient insurance coverage;

• Transferring assets to a statutorily protected class of assets (i.e. residential homestead, life insurance, annuities, or a qualified retirement plan);

• Leveraging unprotected assets such as real estate investments;

• Utilizing liability shielding entities such as limited partnerships, corporations, and LLCs;

• Accumulating wealth in an asset protection trust; and

• Entering into marital property agreements to convert community property into separate property.

• Hiding assets or fraudulently conveying assets to hinder a creditor offers no asset protection and is illegal.

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At Connelly Law Offices, our team will design and implement asset protection plans for individuals and families in Rhode Island, Connecticut, and Massachusetts. Our clients include doctors, lawyers, engineers, business owners, and others concerned about protecting their assets in the event of a lawsuit.​​