A Lesson in Wealth Management

3:06 pm Uncategorized

The Wall Street Journal’s Robert Frank had an interesting post on his Wealth Report blog this week about lessons learned from the McCourt divorce proceedings in Los Angeles.

Entitled How to Shield Assets Like the Rich, Frank writes that, “the greatest lesson from the salacious split between Jamie and Frank McCourt …is the lesson of how the wealthy shield their assets from creditors.”

What he is referring to is the McCourt’s original marital agreement that put their seven vacation homes in Jamie McCourt’s name to shield them from potential business losses incurred by the Dodgers.  This was important, Frank blogs, because the McCourts borrowed money to buy the team, and then borrowed from the team to purchase the homes.

As he notes, there is nothing illegal about this, and putting the assets in the name of a spouse is a fairly common strategy to protect personal assets from potential business liabilities.  Where it all blows up for the McCourts, of course, is in divorce court, where she is now disputing the ownership of the team and advocating for her share of its estimated $1 billion value.

The practice of protecting assets from creditors is important to anyone with property they wish to pass on to heirs or protect for their own use.  Our California asset protection law firm can advise you on asset protection as part of a long-term strategic estate plan.

Let our Costa Mesa law offices help you get started by contacting us today.

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