Will an Off-shore Company provide the asset protection I need?

[nesbi]

Hello all,


Firstly I apologize if I have posted this in the wrong section, can't seem to find any other section more appropriate than this. I would very much appreciate your advice/suggestions please.


Basically I am a hard working individual residing in the UK (worked for the past 21 years doing long hours and unsociable hours, and been resonably prident with my money). I am now looking to invest in property (buy-to-let and/or buy-to-sell) and gradually build up a property portfolio as hopefully my safet net/income source for the future (when I retire etc). My main concern though, is if the wife for whatever reason decides to divorce me in the future and decides to go after half or more of my investment, or some greedy people decide to sue me for all I have got etc.


From my limited research/reading, I am thinking that if I set up an off-shore limited company, with say my mum as the main share holder and I am the director, and basically use the company to buy the properties (i.e. the properties belong to the company, not me directly), would this work in protecting my assets?


Many thanks


Dan

 

[JohnLocke]

Actually it's pretty simple. Any property that is bought by a LTD (company) belongs to the company, what they can do is to pledge the shares in the company if they can prove them to belongs to you. In some court cases they can even force you to either sell the property or shares to get money out of it.


Actually using a complex structure will make it difficult for any creditor, lender or "angry wife in divorce mode" to get access to your assets. It doesen't need to be much more complex then a Offshore IBC with nominees i.e. a Seychelles, Belize or Cyprus company can do it. Additional layer of protection would be to put a trust or foundation in paramount of this structure, so you will have a trustee or protector to help you with the legal issues in this matters.


Above is a simplification of a the possible setup, it would require a lot more information from you and your situation and a possible structure in details to make it happen.

 

[Zqq]

This is a very complicated matter and a legal maze. If I were you, I wouldn't take a decision of this magnitude based on free advice on a forum. I would strongly suggest that you book a meeting with a lawyer or other qualified professional.

 

[lavel]

No one is offering advise here, rule 18 in the forum rules:


The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

 

[nesbi]

...Above is a simplification of a the possible setup, it would require a lot more information from you and your situation and a possible structure in details to make it happen.

Thank you Admin for your response. With regards to your statement above, what should be my next step then - PM you with more details? Thanks

 

[dwilson]

@nesbi - Consider that any purchases/ transactions made by you during the course of your marriage are of equal ownership unless you and your wife have documented otherwise. That will include the money that you use to finance the company and its transactions. That will be your primary vulnerability. There is need to have a trust whereby both you and your wife both agree to gift the funds into the trust and then capitalize the business. Good luck trying to get the Mrs. to agree! Zqq said it best - time to lawyer up! Another issue is that if you hold shares in your name (even if you employ a nominee shareholder and remain beneficial owner) your wife remains your next of kin during marriage. She has rights to the corporate structure. I'm going to suggest that you have a trust as the shareholder and that you and your partner act as joint settlors on the trust.

 

[JohnLocke]

Some of the key fetures may be the wife not knowing that the company even exists so the property that this company owns. Further their are the fact of costs to sue someone, in most European countries you have to deposit some sort of money (most often ranging from 10000 to 20000 euro depending on each individual case) with the attorney so he can start the case, before that can happen you need someone to find all the evidence that even such a company exists.


As dwilson favour to say, nothing is black and white there are laws and there are attorneys and then there is the individual case. That said, consult a attorney who have helped others in the same situation.