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The Family Liability Partnership can be a good strategy for asset protection when an individual’s worth is equal to or below $250,000. However, there may be ways through which a creditor or plaintiff may try to get access to the assets even through a Family Liability Partnership.

A creditor may use a Charging Order to reach your assets through any distributions from the partnership. In other words, if the creditor brings a Charging Order, the general partner may be required to hand over to the creditor any distributions from the partnership which would otherwise go to the debtor partner. The Charging Order gives the creditor access to distributions from the partnership.

A creditor with a Charging Order is likely to come back to the table to negotiate a settlement, because he may not want to wait long for distributions. However, if your creditor does not mind waiting for a long period of time, he will eventually be the recipient of any distributions from the partnership. There’s also another disadvantage, in that during this period of time, you will be deprived of enjoying your assets.

Obviously, the higher the value of the assets, the less desirable an FLP. In fact, we would not advise an FLP for individuals having a net worth of above $500,000. The reason for that is that the higher the value, the more incentive plaintiff’s attorneys have to wait it out and eventually reach your assets.

Besides, creditors might even break open the Family Limited Partnership. That can and does happen, and much more often than you know. That’s the reason why we don’t recommend an FLP as a foolproof, reliable and sole method of asset protection.

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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.
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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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