Reducing Lawsuit RiskJan 31st, 2009 | By Jose DeJesus MD | Category: Strategy
One out of 5 people will feel the effects of a lawsuit at some point in their lives, and this is not limited only to those involved in an accident. Here are some thoughts about reducing your risk of lawsuits and improve your chances of settling them out of court:
Often, the victims of lawsuits are caught by surprise, which usually indicates that they have not properly prepared themselves. Maintaining privacy and planning for the unexpected allows for assets to be protected, along with privacy. Arranging your assets and information carefully can allow you to build a wall of defense against those who might try to take advantage of you. This, of course, does not eliminate responsibility if an accident does occur; however, it can prevent a lawsuit from completely and needlessly eradicating your wealth.
Avoiding the Mistake of Fraud
Waiting until after an unfortunate liability situation occurs is simply too late to make arrangements to protect privacy and assets. Moving around finances and transferring property following an incident only provides opportunity for the party filing the lawsuit to bring up charges of fraudulent conveyance. And, depending on the circumstances, this can be illegal. In anticipation of such, it’s important to be proactive in order to avoid, or at least make the best of, unfortunate lawsuit situations.
Operating Under the Radar
In order to maintain privacy, it’s vital to keep your financial and personal information unnoticeable to those who might be interested in taking advantage of you. Simply reducing the possibility of being discovered by the “lawsuit enemy” will go far in reducing your vulnerability to extreme financial ramifications. The complexity lies in keeping information out of the wrong hands, but staying on the up-and-up from a legal standpoint.
Playing the Game
The key to making yourself less vulnerable to flagrant lawsuits is similar to protecting your assets from a financial standpoint: Diversification. Recognizing that what you own and what you control do not necessarily coincide. For instance, while your medical practice may be under your control, it is perfectly legal for you to arrange it as a limited liability corporation so that it would not be subject to a personal lawsuit. Conversely, if the medical practice that you control happens to be sued, your personal finances will be protected if you make the proper arrangements. Both of these aspects will assist you in diverting lawsuits, or at the very least, settling out of court to mitigate loss.
Of course, the very first step in protecting your privacy and assets lies in accessing legal advice and learning the best way to structure your accounts, real estate, and businesses. A lawyer who specializes in this fieldegal counsel will keep you up-to-date regarding your legal and ethical rights and responsibilities as they relate to privacy and finances. Developing a relationship with a trustworthy lawyer will assist you in setting up your estate, and will also provide you with peace of mind should you find yourself in an unfortunate legal situation.
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