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As an asset protection attorney, Memphis, TN trusts, we can help guide you in how to best protect the personal assets you and your family have worked so hard for.  In this post, we will share with you one strategy you can use in asset protection planning: The Family Limited Partnership.

An Alternative to the Limited Liability Company

The Family Limited Partnership is an alternative to the Limited Liability Company. However, when structuring a Family Limited Partnership, multiple entities are used to obtain similar benefits afforded to Limited Liability Companies. This makes the administration of a Family Limited Partnership-centered plan more difficult than the administration of a LLC-centered plan.

But, the Family Limited Partnership’s benefits include asset protection planning and valuation discounts for estate and gift tax purposes. The use of a Family Limited Partnership is an effective, ethical and legal way to minimize the disruption from attacks on your family wealth and to reduce the risks of being completely depleted by a lawsuit.

Protection Against Judgment Creditors

By using a Family Limited Partnership in a properly designed estate plan, you may be able to place a significant portion of your assets beyond the reach of judgment creditors, while still retaining complete control over those protected assets. A Family Limited Partnership is able to deflect judgment creditors away from the assets of the partnership. Under current state laws, creditors are only able to obtain a “charging order” against the partnership interest of the debtor partner, but cannot take the assets of the partnership to satisfy the personal debt of the partner.

Control Versus Ownership and Income

The Family Limited Partnership allows a family member to exercise complete control over a business or investment activity while passing the ownership and income to other family members. This entity form supports and encourages the retention of control of special family assets, such as businesses, investments, farms and other real estate, and inherited property.

Valuation Discounts for Tax Purposes

The Family Limited Partnership in many cases provides gift and estate tax reductions of the partnership interests based on valuation discounts applicable to their partnership interests. The value of the partnership interest after applying valuation discounts is the amount that is subject to gift and estate taxes, not the value of the assets that are owned by the Family Limited Partnership.

If you need help with asset protection planning, contact the trusted attorney today.

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Thanks to our friends and contributors at Patterson Bray who have significant experience in business formation and organization.

“Roses are red, violets are blue, sugar is sweet, and I want to divorce you”

“Roses are red, violets are blue, I’m thinking divorce, what about you?”

Valentine’s Day. Couples know this day to be the day they publicly celebrate their love for each other. A divorce lawyer Arlington TX trusts knows this day to be the official beginning of “Divorce Season.” AttorneyFee.com, a legal referral site, conducted a study of divorce filings in New York, Illinois and California. The study noted that referrals for a divorce attorney increased 38% following Valentine’s Day, with the largest spike being on February 15th.

Why has Valentine’s Day become synonymous with divorce? In truth, the happiness may have diminished long before the day of romance. Most people put off filing for divorce in November and December in an effort to avoid ruining the holidays. January is the busiest month for bankruptcy filings as well as the month many couples begin paying back the debt they incurred during the holidays. February happens to be the month that is the culmination of the perfect storm. Furthermore, the difficulties of a strained marriage can be highlighted during a “forced” romantic holiday leading to the filing for divorce.

Many couples realize that their spouse does not seem to care anymore. They go through the actions of being in the marriage but at the end of the day, they just co-exist. The prospect of divorce is not an easy process to deal with emotionally and many couples need some sort of advice to put them on the right path. Below are some things to consider during and after Valentine’s Day if you are seeking a divorce.

1. Your emotional well-being.

Ignoring your emotions or pretending they do not exist is one of the worst mistakes one can make in a strained marriage. Valentine’s day can be the trigger point that causes those emotions to rise to the surface. A good therapist is vital to have as a part of your divorce team so that your emotional needs are tended to. On the flipside, a good therapist may be the essential person you need to help you and your spouse find love again.

2. Educate yourself.

There are several laws regarding divorce and assets acquired by the married couple. Properly educating yourself with these laws is vital to a person looking to divorce their spouse. A family law attorney is the best source when educating yourself on the laws pertaining to a divorce. A consultation with a family law attorney will help ease the worry when and if you decide to divorce your spouse.

3. Talk with and listen to your spouse.

Notice the subheading “talk with and listen”. Couples tend to forget that communication is necessary in a marriage. Successful communication is more than just saying what you want and expecting the other person to listen to you. You in turn must listen to their response. Listening and talking together will allow the couple to work through the difficulty they are facing. Communication is also essential during divorce. Miscommunication or no communication can lead to a very nasty divorce that could have been resolved with the simple act of talking and listening.

Unfortunately, Valentine’s Day can mean something different for each couple. If you have a spouse that does not care about the relationship anymore you need to make a decision. Contact one of our experienced Family Law attorneys whether you decide to save the marriage or pursue divorce, the decision you make will allow you to move forward in life.

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Thanks to our friends and contributors from Brandy Austin Law Firm PLLC for their insight into divorce cases.