Quote: (11-14-2015 11:38 AM)polar Wrote:
[*]Structure your employment as a contractor for a company which pays you just a modest portion of your income as a salary, and invests the rest (meaning you show a low income for alimony and child support purposes)
LOL at this. Given how much companies outsource their payroll, you're not pulling this off as a rank and file employee. To get a deal like this, you need some sort of in demand skill so that the otherside of the arrangement is willing to put up with all of this complication. Average person is still an employee, be it wage or salary. They don't have the bargaining power to accomplish this.
And most of those other "protections" are just as laughable.
There's a concept called "piercing the corporate veil". Various entities have been dreamed up to escape all kinds of liability. For typical corporate things, breach of contract, a corporation is the thing that takes the hit, the but the people running the corporation get off Scot Free. But if the court figures out that management was siphoning funds or hiding assets - not only are those assets seized, sometimes the hiders do Jail Time. (And there's no such thing as Club Fed. Madoff isn't playing golf right now)
You see less and less of this punished at the big corporate level not because they played the paper game correctly, but because they play a game of politics that exists outside of law.
But unless your name is Sergey Brin or Elon Musk, the average guy with even an upper middle class income doesn't have enough money or influence to get away with trusts, llc's, and other types of legal hocus pocus.
Some lawyer will of course sell you the paper work, probably charge you a pretty penny for it. But when it comes time to defend your self, do you have those defense lawyer fees sitting some place safe? 20 K into a Trust, and you need another 50k + to defend it in court.
If this is a real concern of yours, you need to be hiding physical cash someplace. But your house, car, pension, stocks, bonds, retirements, insurance policies...things with paper trails can and will be found. And if you've been hiding them from the court, there were probably some laws broken to do so. The court will make whatever entity you create disgorge those assets to be liquidated.
If you're the sort of guy who's looking at 8 figures, the threat to your mountain of cash will probably be 1) the market 2) your competitors 3) a plaintiff.
You could of course leave the country in exile....
WIA