Why should I be proactive about asset protection?

Being proactive with asset protection can be vital to avoiding significant legal and financial risks.

Firstly, waiting until a threat arises can leave you exposed, as Australian bankruptcy laws prevent transferring assets with the intent to defraud creditors. Liquidators and bankruptcy trustees have the authority to reverse certain transactions, sometimes up to five years prior. Establishing strategies well in advance ensures your assets are protected long before any potential risk emerges.

Proactivity also acts as a deterrent. When litigation lawyers assess whether to pursue a case, they often evaluate the defendant’s assets. If your assets are protected or appear inaccessible, the likelihood of being sued diminishes.

Moreover, while business insurance, such as professional indemnity, offers a layer of protection, it has limitations. Policies may not cover all claims or only protect up to a certain amount, leaving you personally liable for the excess. Insurance companies operate for profit, so it’s crucial to carefully review your policy, understand the coverage limits, and be aware of circumstances where claims may be denied.

Taking protective measures today can save you from significant challenges in the future. Let us help you put a strong asset protection plan in place.