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Asset Protection Attorney explains Asset Protection Systems

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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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Provo Utah Co. UT lifetime asset protection trust

Asset Protection Lawyer - A Guide to Asset Protection

Asset Protection Attorney

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Asset Protection Guide:

The strange and sometimes puzzling evolutions in the business world ask for more and more secure methods of protecting the client's assets. In spite of all popular articles claiming the right to be taken into consideration, asset protection strategies depend on individual perceptions. Each person involved in a business is supposed to choose his own means to protect his assets. His decision is crucial but it can be changed by several factors. First element which enters the system of asset protection strategies is considered to be the counselor. He can be a lawyer or not. His position is not really important. Most important fact about a counselor is to understand his client's business and to be able to offer the appropriate advice. He is the most significant element which decides upon asset protection strategies. A counselor must be well informed about all law changes so he can direct his client in the right way. If the relation between two of them respects the basic principles of communication then results are fortunate. Each counselor has to know everything about his client's business as long as he is supposed to guide him towards financial success. However each person owning a business has the right to decide on his future movements. Even if a counselor does try to influence him the final move depends on the client's dynamic character.

A business man might be misguided by his private counselor. Applying asset protection strategies means playing with the law system. This is not about violating basic principles. Most of all is about discovering original ways which might give someone the chance to take advantage in certain situations. For example the principle of LLC might prove extremely operative. But if there are not any experienced persons behind the business master then he would probably miss this hint. The asset protection strategies system is quite sinuous and requires a capable person who is able to explain the basic rules.

People involved in a business might take this fact as a childish game and enjoy playing till the end. First of all, people are supposed to think about asset protection strategies. If taken into consideration right from the beginning then things are really simple. So the business man will enjoy his position being already protected against all possible dangers. If his counselor prescribes him the appropriate asset protection strategies then he does not have to worry about future success. From now on procedures are not so complicated. They remain exhausting but they are pleasant in a way. They are pleasant because they prove their efficiency. They are no longer insecure means of gaining money. Taking real advantage of the asset protection strategies means finding all the possible ways towards financial success. No one should miss this valuable tip of the presence of the counselor. Once a business is getting stronger and stronger, its owner must thing about all opportunities to protect his money. Of course that a counselor would always come with additional information but the final decisions belongs to the client. He is the only person who can decide upon asset protection strategies. He can say if certain strategies are compatible with his expectations. A counselor might always suggest something but if his client does not want to respect the plan then the deal is violated. There are no formal procedures to punish such a decision. The business man might be right. He knows his business. Maybe the counselor is wrong. There are numerous possible situations. But a good counselor would always be able to offer a good advice. So asset protection strategies might be best suggested only by a counselor.

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