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Old 04-30-2019, 09:27 PM
 
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What's the term for when you try to shelter your assets, because you think you're about to be sued, by either gifting it to a relative or starting an LLC. The judge can rule in favor of the plaintiff if it's obvious you were trying to hide your assets.
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Old 04-30-2019, 09:32 PM
 
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Fraud?
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Old 04-30-2019, 09:54 PM
 
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no, I think fraud is too broad. It's a very specific term that applies to what I described.
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Old 04-30-2019, 11:29 PM
 
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"Fraudulent Conveyance" is when you transfer assets to another entity for the purpose of avoiding a current or potential judgement against that asset.

"Asset Protection Trust" is when you establish a trust and place assets into it that becomes theoretically judgement proof after conforming to specific regulations.
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Old 04-30-2019, 11:32 PM
 
14,835 posts, read 6,120,915 times
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Quote:
Originally Posted by sunbelt57 View Post
What's the term for when you try to shelter your assets, because you think you're about to be sued, by either gifting it to a relative or starting an LLC. The judge can rule in favor of the plaintiff if it's obvious you were trying to hide your assets.

No, he can't. The case will be adjudicated on it's own merits. Hiding assets is a separate issue.
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Old 05-01-2019, 05:52 AM
 
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Originally Posted by oceangaia View Post
No, he can't. The case will be adjudicated on it's own merits. Hiding assets is a separate issue.

Basically if he moves his assets before he's sued, it's one thing. But once the letters from lawyers start flying it's something else entirely.
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Old 05-01-2019, 06:38 AM
 
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Originally Posted by MinivanDriver View Post
Basically if he moves his assets before he's sued, it's one thing. But once the letters from lawyers start flying it's something else entirely.

I'm not saying he won't get in trouble over it, I'm saying it doesn't change the outcome of the base complaint. If he's sued for breach of contract, the judgment will be based on the evidence that shows he breached the contract or not. The judge is not going to summarily rule that he breached the contract even if all the evidence says he did not, simply because he tried to hide assets.


A legal complaint will likely be served with a restraining order blocking him from moving assets so doing so will be a violation of the restraining order.
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Old 05-01-2019, 03:50 PM
 
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Originally Posted by oceangaia View Post
I'm not saying he won't get in trouble over it, I'm saying it doesn't change the outcome of the base complaint. If he's sued for breach of contract, the judgment will be based on the evidence that shows he breached the contract or not. The judge is not going to summarily rule that he breached the contract even if all the evidence says he did not, simply because he tried to hide assets.


A legal complaint will likely be served with a restraining order blocking him from moving assets so doing so will be a violation of the restraining order.
So, there's no lawsuit yet? No complaint filed?

Why would a judge look at assets now? Or ever?
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Old 05-01-2019, 04:31 PM
 
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Originally Posted by KaraG View Post
So, there's no lawsuit yet? No complaint filed?

Why would a judge look at assets now? Or ever?

The court can look at assets retroactively. It's done all the time in bankruptcy cases to check that you didn't go on a reckless spending spree just before filing BK. You can't just get new credit cards, buy a bunch of high end furniture and electronics, go on elaborate vacations, then file BK. Well, you can, but the court is not going to let you include those purchases in the BK.
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Old 05-02-2019, 06:46 AM
 
5,386 posts, read 3,589,212 times
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Originally Posted by oceangaia View Post
The court can look at assets retroactively. It's done all the time in bankruptcy cases to check that you didn't go on a reckless spending spree just before filing BK. You can't just get new credit cards, buy a bunch of high end furniture and electronics, go on elaborate vacations, then file BK. Well, you can, but the court is not going to let you include those purchases in the BK.
Sure, but the OP mentioned possibly being sued by someone, not a BK. I guess it would depend on what the case was about.
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