Why should I be proactive about asset protection?

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

Waiting until a threat arises can leave you exposed, as Australian bankruptcy laws prevent transferring assets to defraud creditors and liquidators can reverse transactions up to five years prior. Planning ahead protects your assets from potential risk before problems occur.

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.

While professional indemnity insurance offers some protection, policies may not cover all claims or only protect up to a certain amount, leaving you personally liable for the excess. Reviewing your policies carefully ensures you understand coverage, exclusions and potential gaps.