I’m establishing an LLC in just my name, would it be a good strategy to put all our personal bank accounts and investments in my wife’s name?

I am in the process of setting up my home based LLC. I am married, but I will set up my LLC in just my name. Even though I will have an LLC to protect my personal assets, would it be a good strategy to put all our personal bank accounts and investments in my wife’s name? This way if something happens and they do try to come after our personal assets, it’s not in my name and I will be even better protected?

 

Answer:
Personal trusts and other measures can be used to provide additional layers of personal asset protection; however, measures to hide assets from creditors and other parties, for example, can be ineffective due to the courts’ right to reverse transactions under certain circumstances. Before closing your personal bank account, changing the ownership of any personal assets, or taking other measures to possibly protect your personal assets, we strongly recommend that you consult your insurance agent and lawyer to review your personal asset risk concerns, to identify the proper business and personal insurance for your situation and to determine what other measures should be considered to legally protect your personal assets as a business owner. For consideration with your lawyer, you can review the following example articles and discussions regarding LLC limited liability protection, hiding assets, and related topics:

Hiding Assets:

• Hiding Assets in Bankruptcy: nolo.com
• Liability For Hiding Assets: legalmatch.com

Corporate Veil Information:

• How to Avoid Piercing the Corporate Veil: bizfilings.com
• How to Preserve Limited Liability: quickmba.com
• Personal Liability: bizadvisor.com

Fraudulent Conveyance:

• Understanding Fraudulent Conveyances: caddenfuller.com
• Fraudulent Conveyance: lectlaw.com