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Before delving into strategies for protecting your personal assets, it's essential to understand what you're safeguarding them from. Business liabilities are the debts or legal claims that a company faces, while personal assets refer to anything you own outside of your business—such as your home, car, or personal savings. Although business and personal finances may seem like separate entities, business liabilities can potentially put your personal assets at risk. What Are Business Liabilities? Business liabilities can take various forms, including unpaid debts, lawsuits, or damages caused by products or services. As a business owner, you are often personally responsible for your company's liabilities. This means that if your business is sued or fails to cover its debts, your personal assets may be used to settle these liabilities. To mitigate this risk, many business owners turn to strategies like forming a Limited Liability Company (LLC) or a Corporation . These business structures create a legal separation between your personal assets and business obligations, offering a layer of protection should your company face financial or legal issues. Understanding Personal Assets Personal assets include items owned outside the scope of your business, such as real estate, savings accounts, and investments . The goal is to shield these personal assets from business liabilities, ensuring they remain untouchable in the event of a legal claim or financial fallout. Liability insurance is a popular tool that can protect both your business and personal assets from lawsuits. Be sure to review and update your insurance policy regularly as your business grows and evolves. Another protective measure is creating a trust —a legal arrangement where a trustee manages and holds assets on behalf of a beneficiary. By transferring ownership of personal assets into a trust, business owners can often shield these assets from being seized in the event of a business liability. Choosing the Right Business Structure The way you structure your business plays a pivotal role in protecting your personal assets. Below are a few common business structures and how they impact liability protection: Sole Proprietorship A sole proprietorship is the simplest form of business ownership. While easy to set up, it offers minimal liability protection . For example, if you run a bakery and a customer sues you for food poisoning, your personal assets (such as your home or savings) could be at risk, since you are personally liable for the business's debts and claims. Partnership A partnership involves two or more individuals sharing ownership, profits, and liabilities. This structure also exposes personal assets to risk. For example, if one partner in a landscaping business causes damage to a client’s property, both partners could be held liable, putting their personal assets in jeopardy. Limited Liability Company (LLC) An LLC offers greater protection for personal assets. This structure separates business liabilities from personal ones, meaning only the assets owned by the business are at risk in a lawsuit or financial dispute. For example, if your online clothing store faces a legal claim, only the business’s assets would be at stake, not your personal property. Corporation A corporation is a separate legal entity that shields its shareholders from personal liability. Personal assets are generally safe from business-related claims. For instance, if a software company faces a patent infringement lawsuit, the corporation’s assets—rather than the owners’ personal assets—would be at risk. Separating Personal and Business Finances Keeping personal and business finances distinct is key to protecting your assets. Here are some practical tips to help you achieve that: 1. Open a Business Bank Account A dedicated business bank account helps you clearly separate business and personal finances. This not only simplifies tracking business expenses and income but also reinforces the separation of personal and business assets. 2. Use a Business Credit Card Applying for a business credit card allows you to separate business-related spending from personal expenses. This also builds your business’s credit profile while protecting your personal assets. 3. Maintain Accurate Financial Records Careful recordkeeping is essential for both legal and financial reasons. Use accounting software (like QuickBooks or Xero) to track income and expenses, and consider hiring an accountant to help manage your finances. Obtaining the Right Insurance Coverage Insurance is a vital tool in managing business risks and protecting personal assets. Here are some key types of insurance for business owners: General Liability Insurance This covers claims for bodily injury or property damage that occur on your business premises or as a result of your products or services. It helps pay for medical expenses and legal fees associated with lawsuits. Professional Liability Insurance Also known as Errors and Omissions (E&O) insurance, this coverage protects against claims resulting from the professional services you provide. For instance, if a financial advisor makes a recommendation that leads to client losses, this insurance can cover legal defense and settlement costs. Property Insurance This protects your business property, including buildings, equipment, and inventory, against damage or loss. For example, if a fire destroys your office, property insurance can help cover repairs and replacement costs. Workers’ Compensation Insurance This type of insurance covers medical expenses and lost wages for employees injured on the job. It also protects you from lawsuits arising from work-related injuries. Implementing Asset Protection Strategies Beyond choosing the right business structure and insurance, there are proactive steps to safeguard your personal assets: 1. Develop an Asset Protection Plan A comprehensive plan should identify potential risks and outline strategies to minimize them. Consulting with a legal professional is crucial in creating an effective strategy tailored to your specific needs. 2. Utilize Trusts and Retirement Accounts Transferring personal assets into a trust or contributing to a retirement account (such as a 401(k) or IRA) can shield your assets from creditors and legal claims. These accounts are generally protected from lawsuits, making them an effective asset protection tool. 3. Invest in Real Estate Real estate offers both financial growth and protection. Since real estate is typically shielded from creditors, owning property can serve as a long-term asset protection strategy. Regularly Review and Update Your Asset Protection Plan Asset protection is not a one-time task. To ensure your plan remains effective: Monitor legal changes : Stay informed about changes in asset protection laws that might affect your business. Adapt as your business grows : Update your plan as your business expands, acquires new assets, or enters new markets. Evaluate effectiveness : Regularly assess whether your protection strategies are still viable and make adjustments as necessary. Conclusion Protecting your personal assets from business liabilities is a fundamental aspect of owning and running a business. By selecting the right business structure, separating your personal and business finances, obtaining sufficient insurance, and utilizing asset protection strategies, you can ensure your personal wealth remains safeguarded. Regularly reviewing and updating your plan is essential to adapting to business growth and changes in the law. For expert legal guidance on asset protection, business structures, and other legal matters, contact Bennett Law Mediation Services LLC today. Our experienced team is here to provide you with the legal support you need to protect your personal and business assets. Reach out to us to discuss how we can help you navigate the complexities of business law and safeguard your financial future.

Written By: Muskaan Patel Running a business with a partner, be it a friend or family member, can be a rewarding venture. However, the reality is that not all business partnerships are smooth sailing. Conflicting viewpoints on how the business should be operated, divergent ethics, and disagreements on crucial decisions are not uncommon. When disputes arise, it's crucial for business owners to prioritize the protection of assets and the business's reputation. Addressing disputes in a timely and effective manner is essential to safeguarding the interests of the business. Many business owners may hesitate to take the matter to court, fearing potential repercussions on the business or relationships with partners. However, delaying legal action can have more detrimental effects in the long run. One valuable resource for resolving business disputes is a skilled business attorney. These professionals bring astute litigation skills and legal expertise to the table, making them invaluable when navigating complex disagreements. Here are a few reasons why engaging a business attorney is a wise decision: 1. **Protection of Business Assets:** A business's assets are its lifeblood. In times of dispute, it's crucial to ensure that these assets are protected. A business attorney can guide you through the legal processes necessary to safeguard the financial interests and assets of the business. 2. **Preservation of Business Reputation:** The reputation of a business is often as valuable as its tangible assets. Public disputes or legal battles can tarnish the image of a business. An experienced business attorney can help devise strategies to minimize the impact on the business's reputation while effectively addressing the underlying issues. 3. **Timely Resolution of Disputes:** Procrastination in addressing disputes can exacerbate the situation. The longer a dispute persists without resolution, the greater the potential harm to the business. A business attorney can facilitate a swift and efficient resolution, mitigating the negative consequences of prolonged conflicts. 4. **Legal Expertise in Business Matters:** Business law is intricate and varies across jurisdictions. A business attorney brings a wealth of legal knowledge specific to business operations, contracts, and dispute resolution. This expertise is invaluable in crafting effective legal strategies tailored to the unique circumstances of your business. 5. **Mediation and Alternative Dispute Resolution:** Litigation is not always the only option. Business attorneys are adept at employing alternative dispute resolution methods such as mediation or arbitration. These approaches can provide a more amicable and cost-effective way to resolve conflicts without resorting to lengthy court proceedings. In conclusion, while disputes among business partners are inevitable, the manner in which they are addressed can significantly impact the future of the business. Engaging a business attorney early on demonstrates a commitment to a fair and swift resolution, safeguarding the assets, reputation, and overall success of your business. Don't let disputes fester—seek legal guidance to navigate the complexities of business disagreements effectively.

Written by: Muskaan Patel  A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. When a party that signs the contract neither performs their contract nor tenders performance, or when the performance is defective, there is a breach of contract. The non-breaching party must prove that there is a breach of contract and that the contract that was breached was legally valid and enforceable. There are two types of breaches of contract: 1) Anticipatory Breach of Contract 2) Actual Breach of Contract An anticipatory breach of contract occurs when the party that signed the contract refuses altogether to perform their promises and signifies their unwillingness to fulfill the contract, even before the time of performance has arrived. By declaring an anticipatory breach, the opposing party may begin legal action immediately, rather than waiting until the contract's terms and conditions are broken. An actual breach of contract occurs when the party that signed the contract refuses to perform the promise on the scheduled date. When one of the parties breaks the contract by refusing to keep the promise when it falls due, it is an actual breach. It's important to note that the information provided here is for general informational purposes only and is not legal advice. If you have specific questions or concerns about contract issues, it is advisable to consult with an attorney who can provide you with guidance tailored to your situation.

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What’s the Difference?

By: Audrey Vincent, Law Clerk

The votes have been counted and the results are in! Bennett Law & Mediation Services LLC is a 2021 Best of Georgia® winner in Georgia Business Journal’s annual readers’ poll. Georgia Business Journal readers and editors have weighed in on the best of everything in Georgia, honoring thousands of businesses and organizations in more than 25 broad business and community sectors. The process starts with a nomination on the Best of Georgia website. Voting remains open throughout the year, with tens of thousands of votes ultimately received. The process culminates with the publishing of the annual Best of Georgia Keepsake Annual along with a statewide publicity campaign. Best of Georgia winners and nominees are chosen by a combination of readers’ votes and editors’ input, and are vetted through several ranking sites, Better Business Bureau complaint reports, and voting pattern analysis reports. Winners are named in hundreds of individual categories, providing Georgia Business Journal readers with a go-to-guide for the best of everything in Georgia. Georgia Business Journal recognizes three levels of winners: The Best of Georgia, Best of Georgia Regional Winners and Honorable Mentions. Within each category, there are multiple honorees named in each tier, depending on the size of the market sector. You can view the full list of Best of Georgia winners at BESTofGEORGIA.com/winners

Emotionally and financially, a divorce can be incredibly taxing and can lead to increased stress not only for spouses, but also any children between them. A question often considered at the onset of a divorce is “what now? Do I need to get an attorney?” Simply put, the answer is no you do not need to get an attorney. However, you may want to get an attorney to ensure all of your interests are adequately protected in the divorce. What does “Pro Se” Mean? Pro Se representation is when a person represents themselves in court as compared to hiring a lawyer to represent them. This will include the time from the initial complaint being filed all the way to the final hearing or settlement for divorce. All filing of documents and communication with the court must be done by that person and that person must be timely on all documents required by the court. What are the Advantages of a Pro Se Divorce? Simply put, there is truly only one “advantage” to representing yourself in court—cost savings. However, there is a tradeoff to any savings from representing yourself. In a perfect world, both spouses agree as to all provisions of the divorce and there is no argument as to any property/debt distribution, alimony, spousal and child support, custody and visitation, and any other issues related to the marriage. In this above described scenario, both parties should be able to get a divorce and be content with the agreement between them without the need of a lawyer. However, as commonly seen, there is at least one issue amongst those areas that the parties disagree on. When there is an issue between any of the parties on any of the above factors listed, pro se representation may be hindered. What are the Disadvantages of a Pro Se Divorce? When there is an issue concerning property/debt distribution, alimony, spousal and child support, custody and visitation, and any other issues related to the marriage, the divorce is considered “contested.” A contested divorce likely requires the expert handling of the divorce by a lawyer to ensure their clients interests are protected and that they are receiving what they want in the divorce. Any time court is involved for any person it can be complicated and knowing the law can go a long way in achieving the best outcome for whomever is obtaining a lawyer. This can include staying on top of all the time requirements in a divorce, communicating with the other spouses attorney, researching and applying the law specific to the case, having readily accessible information concerning the law, and fiercely advocating in the court room without the worry of violating some unknown rule that the pro se litigant may not be aware of. Not acquiring a lawyer, especially when the other spouse has gotten a lawyer, can be adverse to the unrepresented spouse and the case than if they had retained a lawyer for themselves. Not only is there an increased risk of losing out on some aspect of the divorce (custody, alimony, assets), there is a chance the pro se litigant will violate a court rule that is unknown to them and could hinder their case or even result in contempt of court. So What is the Bottom Line? While representing yourself in a divorce is an option—it is not the best option. It is always recommended to seek legal representation from an attorney to analyze the case and protect your interest.