Does Asset Protection Discourage Lawsuits?

Posted on April 1, 2022

Asset protection can discourage lawsuits in a couple of ways. Some plaintiff's attorneys may try and discover what assets a potential suit target has before filing a suit. Keeping in mind that plaintiff's lawyers are generally compensated only if the case is successful and they are able to collect, a well formulated asset protection plan may initially make it difficult for plaintiffs and their lawyers to know exactly what it is you have to lose.

Even if the plaintiff and their lawyer simply assume you have assets to seize in the event they are able to obtain a judgment against you, a well done asset protection plan generally dissuades aggressive litigation and encourages favorable settlement. As soon as the plaintiff's lawyers learn of the existence of a comprehensive asset protection plan, their 'enthusiasm' for pursuing the case will likely wane as they will appreciates that there are better uses of their time and resources than trying to collect what is for the most part uncollectable.

In sum, the best way to avoid lawsuits is to not do anything that will get you sued. The next best way is to plan in advance and make yourself an unattractive suit target! If you ever do get sued, getting the case settled quickly and inexpensively is going to be to your benefit!

Attorneys - are you doing what you can to put your clients in a position where suits are unlikely? Are you putting your clients in a position where plaintiffs will either want to settle or not file at all? If not, call me, I'll show you how!