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Asset Protection Attorney: Information Security Policies: Foundations of Asset Protection

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"Asset protection" has long been a strategy in divorce cases across the United States. The term "asset protection" refers to the use of a legal strategy in order to hide or shield assets from the Courts. Bitcoins, the relatively new internet currency, will most likely become the next frontier of asset protection.

In divorce cases, asset protection can take many forms. Sophisticated asset protection techniques involve transferring money to an overseas account, the formation of legal entities (trusts, corporations, limited liability companies) and other methods.

The most unsophisticated and simple form of asset protection, and perhaps the most common in divorce cases, is simply holding money in the form of cash (i.e., inside a home safe or in a bank safety deposit box). In this way, a person that is in the process of divorce believes that he can "protect" the cash from the divorce process. The divorcing spouse might keep the existence of the cash secret from his spouse, divorce lawyer and Court, in order to avoid being ordered to share the cash with his spouse. This strategy may or may not be successful, but it is surely not legal because it requires that the person misrepresent his assets to his spouse and to the Court.

A sophisticated divorce lawyer will know how to uncover hidden assets of this kind through the examination of financial records and other means of legal discovery. Bitcoin, however, has the potential to replace the hiding of cash as the most common form of asset protection in divorce cases. Given the structure of the bitcoin system and most divorce lawyers ignorance regarding bitcoins, it could become a significantly more successful method than hiding cash.

Bitcoin is the digital currency that was created in 2009 by the anonymous developer known the by pseudonym as Satoshi Nakamoto. It is a currency that exists only in digital form. All bitcoins and transactions are "registered" on the bitcoin block chain that is updated by bitcoin users rather than a centralized authority. The transactions, however, do not include names but rather the digital identification of each bitcoin. Bitcoin owners keep their bitcoins in a bitcoin wallet. The wallet is not necessarily a physical wallet, but rather various methods for storing the digital identification of the bitcoin. The wallet might be kept on a computer, the server of a bitcoin wallet website, or even a piece of paper.

While is theoretically possible to trace the transfer of a bitcoin by examining the block chain, one will only discover the public identification key of the bitcoin rather than the name of the owner. If the wallet is kept on a person's computer or on a website (where a party to a divorce registered his name) it is possible to discovery the existence of the bitcoins. However, wallets do not have to be associated with a name. Furthermore, if a person uses a "brainwallet" tracing a bitcoin to a specific person becomes almost impossible through any conventional method. A brainwallet is the use of a memorized passphrase in order to store a bitcoin.

The methods for discovering hidden cash will be the first approach of any divorce lawyer for discovering a bitcoin asset protection plan. Unfortunately many, if not most, divorce lawyers and judges are unfamiliar with bitcoins and the fact that bitcoins can be used to hide assets. A divorce lawyer who doesn't understand bitcoins cannot possibly be expected to uncover hidden bitcoin assets. If you have any suspicion that your spouse might be hiding assets, make sure your lawyer understands the bitcoin system and how to discover hidden bitcoin assets.

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Asset Protection Attorney explains Asset Protection Systems

Asset Protection Attorney

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There are certain key elements you want to protect during a divorce. Asset Protection in a divorce usually consists of actions involving a spouse. Spouses who want to protect there finances and avoiding splicing property up. Personal property and marital property are the assets they are looking to protect. Even if the said property is in a single name. It may still be subject to division under the laws of the state or court system.

Inheritance and distinct property can possibly be separate from marital property. But individual property can and does sometimes get mixed up with marital property. If you have personal property such as money that was put into any marital accounts after you were married. These funds are now marital property.

This instance is where it would have been handy to have had a prenuptial agreement. This in turn would have helped to keep your assets safe. But if there is no such agreement your most likely going to loose at least have of those funds.

In this case protecting your individual assets would have saved you a lot of trouble. This would be called an Individual Asset Protection. This would have been included in the a fore mentioned prenuptial. Simply put, To keep your asset's safe you would have just not included these funds in the marital accounts. In this light a prenuptial is not necessary to protect yourself with asset protection.

If before marriage, All to keep Asset Protection in a divorce. Just keep your accounts separate and you will have used Asset Protection in divorce. As you can see Asset Protection can be very simple or very complicated. Especially if involving a court of law. You never know what a judge of the courts may do or order during a divorce.

You may have certain other rights in your state of jurisdiction. Remember that some states don't allow the protection of asset's in any circumstance. Know your state and local laws in this area. Also certain country's don't allow asset protections in any form.

Have your asset's planned before you get married to avoid any hatred or despise for the other party. It is that simple to make asset protection in a divorce work for both party's involved.

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