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Setting up systems to handle known problems or issues that repetitively present themselves is generally a very good idea.  It reduces the time required to asses the issue, develop a solution, and implement the plan.  In essence, having systems reduces stress, because you know how certain issues will be tackled.  Systems are good thing in life, generally, and in the world of asset protection.

The Purpose of Planning to Protect Assets in Advance

Whether you need a physician asset protection plan or a real estate development asset protection plan, the purpose of formulating and implementing a plan prior to claims arising (e.g. lawsuits being filed, bankers clamoring for more collateral, malpractice claims, etc.) is to avoid fraudulent conveyance issues, which cannot be addressed once a claim is pending without running the risk that a court decides to “undo” your allocation of assets.

Another Example of Why Planning is Needed in Advance: Protecting Business Income

We recently wrote an article about wage and income garnishment and specifically noted that wages cannot be garnished from the head of household under Florida asset protection laws.  But what if the head of household is a business owner?  In a relatively recent Florida bankruptcy court decision (the “McDermott Case“), it was determined that a business owner could not exempt his income from garnishment, even though he was the head of his household.  Why, you ask?  Because of a lack of planning and the failure to use systems.

See, the business owner in McDermott received irregular compensation from the business he owned.  He didn’t receive a regular salary and he didn’t have an employment agreement in place with the business he owned.  Those facts led the bankruptcy judge to conclude that the debtor’s income was comprised of business profits, which are not exempt from garnishment, as opposed to wages, which are exempt.

By crafting a pay plan with knowledge of the law and implementing a system to carry out the plan (e.g. recurring salary payments), the debtor in McDermott could have protected his income from garnishment and left some of the business profits within the business operating account, where it would likely have been protected as an outside liability to the business, assuming the business wasn’t a single-member LLC subject to Olmstead and the subsequent Olmstead statute.

Asset Protection Planning is Business Protection Planning

Your ability to earn income and make a living, your business, and the assets in which you have equity are all things that need to be protected.  Hard analysis and advanced planning are the only ways to make sure that you and your business are fully protected.  If you have questions about protecting your business, check out Lodmell & Lodmell’s Integrity Workplace Package, the Center for Employment Dispute Resolution, and contact an asset protection attorney today.

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Pashmina Lalchandani

CEO & Co-Founder, Bar & Cocoa / Owner, Flow Simple
December 9, 2010, Douglass was a client of Pashmina’s

I’ve known Doug in many contexts, as a friend, as a client and as a business partner and he impresses me on all levels. He’s dependable, smart, generous and I wouldn’t hesitate recommending him and his law firm to anyone.
He’s the best and most ethical lawyers providing asset protection with rock solid strategies to give you peace of mind about your wealth. Straight forward, and straight talk. Doug is exactly the lawyer I want on my side. If I send someone to Doug, I know they’ll thank me for it!

Social & Solar Entrepreneur, Pan Afrikan Theorist, Translator/Interpreter,
Founder & Visionary Leader @ Afrikanpride.
March 12, 2011, Marlon E. D. J. worked with Douglass but at different companies

Doug is one of the most powerful thinker i have came across. During the short time that i have known Doug he has been a great source of inspiration. He has a simplistic yet effective and accurate way to analyze anything you bring to his attention, and then by asking you key questions he gets you to see the light at the end of the tunnel. Besides being extremely bright, he is a genuine and caring individual which is why I feel fortunate to know him. I can say without a doubt that he his the person you would want to talk to if you were in need of a person with his expertise.
Most of the lawyers out there will probably meet your needs, but if you are looking for someone to exceed your expectations and give you that wow factor, look no more he is the person for the job.

Patricia Salter

Associate Dentist at Smileology
December 1, 2010, Patricia was a client of Douglass’

I have been a client of Douglas Lodmell’s since 2001. My main concern was asset protection in this litigious society. I can sleep alot better at night knowing I have the instruments in place to protect the fruits of my labor, and that they will not end up in the hands of a slick trial attorney.

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