Asset protection involves strategies to limit one’s liability and to protect assets from potential creditors. The term asset protection often carries a sinister connotation as it is sometimes thought of as a way to hide assets from one’s creditors (which may include an ex-spouse or soon-to-be-ex-spouse). However, asset protection actually involves completely valid and legal methods of structuring one’s business and financial affairs to minimize liabilities and manage risk. Working with a client on asset protection will always start with a thorough and honest discussion of what potential liabilities exist and the risks involved. My goal in structuring asset protection strategies is to use the appropriate tool for the type and degree of risk. This will avoid the cracking a nut with a sledgehammer result. Some typical asset protection strategies may involve how assets are titled, gifting assets to family members (or to trusts for family members), creating various types of business entities, or even creating onshore or offshore trusts.