Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
How does an investor protect themselves and their properties from being ate up in a divorce?
My friend who is a lawyer said that if you are behind $1 (one single dollar) a lien can be placed on any real property in your name.
Does a prenup really offer protection? Can assets in an LLC you own be seized? Would it be advisable for a single person to just avoid being legally married?
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
10y
The keys to the answers are in your post...
"...any real property in your name." NEVER hold property in your own name if you want to be able to protect it. Hold it in a business entity. LLC is usually recommended.
"... assets in an LLC you own ..." Your LLC should be owned by your personal trust and another entity owned by the trust, not you personally. "Control everything, own nothing."
Talk to a business attorney about business entity structures. I can refer you if you need one.
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice." - DJ Benedict
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
10y
Originally posted by @Account Closed:
I don't think an LLC will help you because someone needs to be the owner of the LLC, and I am sure you want to be the owner.
Actually, no - you don't want to own it. You want to CONTROL it, but not own it. Other elements in your business entity structure should OWN the LLC, not you personally.
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice." - DJ Benedict