Bridgewater Asset Protection Lawyer

Protecting assets is often a serious concern, especially for professionals and business owners. Frequently, our clients have worked hard and want to preserve their wealth and assets, but they worry about lawsuits, creditors, divorces, or bankruptcies.

To safeguard your assets against these potential difficulties, it’s crucial to implement risk management strategies. These may involve shielding your property from creditor claims, reducing personal liability by using legal business structures, and mitigating exposure through appropriate insurance coverage.

Navigating these options can be confusing, but the legal professionals at Van Dyck Law Group are here to help. We’ll review your situation and explain the options to protect your assets, allowing you to make an informed decision.

Please contact us today to schedule a consultation and learn more about how we can assist you.

How a Bridgewater Asset Protection Attorney Helps

First, we’ll discuss your future goals, the assets you want to protect, and your primary concerns. Learning about your priorities will help us determine the next steps to take. Depending on your situation, we will then recommend options for some of the following common situations:

Limiting Liability in Business

If you’re a business owner, we’ll ask about the type of company you run. Sometimes, small business owners, such as an LLC (limited liability company) or corporation, continue to operate as sole proprietors because they haven’t had the time to establish a business entity, or they prefer to avoid the fees associated with creating a business entity.

It’s important to understand that while sole proprietorships offer simplicity and avoid some setup fees, they also carry significant risks, especially as your business expands. If you are ever sued, the plaintiff (the injured party) could try to seize your personal assets.

You might be thinking that you won’t get sued, because you run your business carefully. Unfortunately, no matter how careful you are, you can’t eliminate the risk of lawsuits.

Even the most careful people can overlook some small details, and you can’t control what your employers or customers do.

For this reason, we might recommend setting up a business entity so that, if you were sued, only your business assets would be at risk. Additionally, we’ll review your business insurance to ensure you have enough liability coverage to minimize your business exposure.

All insurance policies have limits and exclusions, so you still need a business entity for full protection.

Protecting Assets from Creditors and Bankruptcies

Even with careful financial planning, it’s easy to get into debt these days. If you find yourself in debt and considering bankruptcy, you may wonder if it’s possible to protect some of your assets.

In some cases, you may be able to protect certain assets from creditors under New Jersey law. However, you should consult with an experienced asset protection lawyer to be sure everything is handled in accordance with the state’s Uniform Voidable Transactions Act (UVTA).

Under UVTA, transactions are considered fraudulent if they’re completed with the intent to defraud creditors, potentially creating further legal problems for the person pursuing bankruptcy. However, there are some legal asset exemptions in New Jersey.

Let’s take a look at a few common situations involving assets and exemptions:

Assets in a Spouse’s Name

Assets owned solely by the non-debtor spouse are typically shielded from the claims of the indebted spouse’s creditors, with one major exception—the “Doctrine of Necessities.” This legal principle makes one spouse liable for essential expenses related to the other’s health and care, such as outstanding medical bills.

While transferring or holding assets in the non-debtor spouse’s name can be a helpful asset protection tactic, it’s important to also weigh potential tax consequences before proceeding. The rules on transferring assets to a spouse are also complex, and in some cases, such a transaction could be challenged under UVTA.

Consulting an asset protection law firm can help you ensure you’re not creating further legal issues.

Tenants by the Entirety

Tenancy by the Entirety is a special type of property ownership available exclusively to married couples, and in New Jersey, it applies only to jointly owned real estate. Generally, property held this way is protected from creditors pursuing only one spouse, but it remains at risk if both spouses are liable for the debt.

In New Jersey, creditors cannot force the sale or division of property held as tenants by the entirety when the obligation belongs to just one spouse. However, protections may be limited when you do sell the property, particularly if the home is of significant value, as exemptions typically apply only to homes considered “of modest value.”

If the house is of higher value, this exemption might not protect you. It’s also important to note that this form of ownership does not shield against claims by the IRS; if one spouse owes federal taxes, the IRS can pursue a partition of the property.

These rules can be confusing, but your asset protection lawyer will help you understand how they might apply in your particular situation.

Retirement Plans

In New Jersey, most retirement accounts, including IRAs, are typically protected from creditor claims, at least until funds are withdrawn. At the federal level, a wide range of retirement plans enjoy protection; however, Traditional IRAs and Roth IRAs often receive less robust shielding compared to other types of accounts.

There are also several exceptions to creditor protection for retirement accounts, including federal tax levies and divorce.

Inheritances

Inheritances are not usually exempt from creditors. However, if you wish to leave money to a relative with frequent spending problems, you can set up a “spendthrift trust” to safeguard the assets.

The beneficiary has no direct access to the trust, and a trustee will distribute limited amounts of money in accordance with the rules outlined in the trust documents.

Bankruptcy

There are two common types of personal bankruptcy: Chapter 7 and Chapter 13.

Under Chapter 7 bankruptcy, the debtor’s non-exempt assets are sold to help satisfy creditors. Exemptions allow you to protect a limited amount of equity in your home or vehicle, as well as essential household items such as clothing and appliances. Your asset protection planner can help you determine which exemptions apply to you and which of your assets may not be exempt.

Chapter 13 is a type of bankruptcy that allows the debtor to reorganize debt and create a repayment plan. Under this option, debtors can keep some of their assets so long as they make regular payments. This can be a good solution if you have a regular income and want to retain assets.

What about business bankruptcies? There are several types, but Chapter 11 is the most common.

Chapter 11 is also a reorganization plan that allows the business to continue operations while making a plan to pay off debtors. It is possible to file for Chapter 7 bankruptcy for a business. However, this typically results in the liquidation of assets to pay the debt.

Other, less common types of bankruptcy may be a good option in specific situations. Your lawyer will advise you if one of these solutions might be a better fit for your situation.

Protecting Assets in a Divorce

If you are already married and are considering a divorce, we recommend consulting a divorce attorney to explore your options. However, if you are not yet married, an asset protection attorney can help you with a prenuptial agreement to help protect your assets in the event of a divorce.

A prenuptial agreement, often referred to as a prenup or premarital contract, is a legal document created and signed by a couple before the marriage. It sets the terms on how their property, finances, and liabilities will be managed if the marriage ends in divorce or if one spouse passes away.

This agreement provides couples with the opportunity to define their own financial arrangements, rather than being bound entirely by default state laws regarding asset distribution in the event of divorce.

Each party should have their own attorney before signing a prenuptial agreement. This ensures that both spouses understand the terms of the document and how assets will be divided in the event of a divorce.

Your attorney can also help you negotiate the terms of a prenuptial agreement if you feel it is unfair to you.

Asset Protection FAQ

How Can You Protect Assets from Nursing Home or Long-Term Care Costs?

Nursing homes and long-term care expenses can quickly decimate a person’s retirement savings and other assets they want to leave for their family or heirs. Medicaid coverage is an option, but it requires that the patient have very limited assets and income.

It’s possible to protect some assets from these situations with careful planning, and you will have more options if you begin planning sooner rather than later. In some cases, we can place assets in a trust or transfer them to relatives, but these steps must be done in accordance with specific rules and regulations.

Can You Hide Assets When Applying for Medicaid?

Trying to hide or dispose of assets to meet income/asset requirements for Medicaid is not a good idea. Medicaid conducts a thorough, five-year “look back” over all your assets and financial transfers.

If you gave away, transferred, or sold assets below market value, they will find out about it.

However, an experienced asset protection lawyer can help you find ways to maintain eligibility while preserving assets. The more time you have before you need Medicaid, the more options will be available to move or transfer assets safely.

For this reason, we encourage you to speak with an asset protection attorney today.

How Long Does a Bankruptcy Stay on Your Credit Report?

A Chapter 7 bankruptcy remains on your credit report for ten years from the date of the filing. However, a Chapter 13 bankruptcy falls off after only seven years.

Learn More About Bridgewater Asset Protection Planning – Contact Van Dyck Law Group Today

Whether you are navigating the complexities of estate planning or are concerned about your business assets, Van Dyck Law Group is here to assist.

Our experienced Bridgewater asset protection attorneys are dedicated to helping you explore your options, provide clear answers to your questions, and create tailored legal strategies that align with your situation. We recognize the emotional and logistical challenges that often accompany this process and are committed to offering empathetic and reliable support throughout your journey.

For more information, please contact us at (908) 201-0629.