Question:
I am being sued for defamation. If I lose, is there any way to protect my assets? I own a 49% interest in a business that is a corporation and a 50% interest in a piece of property that is held by an LLC.
Response:
It’s difficult to take asset protection steps after you have been sued because it would be seen as a fraudulent conveyance and the property could be brought back into your name to satisfy any judgment. That doesn’t mean that your lawyer couldn’t make arguments to protect your businesses as they are currently owned. For instance, it’s often difficult to market closely-owned businesses or property that you don’t control. Your lawyer could use these as defenses to any claim or at least arguments why any valuation of the business or real estate should be discounted, meaning that the plaintiff shouldn’t receive the full value of 49% of the business or half the real estate.
