How to make yourself lawsuit proof.

If you are a businessman, doctor, landlord, investor, real estate developer, director, or officer of a corporation, "you're an easy target for a lawsuit," warns Michael Brette, chairman of Capital Asset Management, Riverside, Calif., and author of Asset Protection Planning: How to Protect Yourself from Lawsuits. "Our society, the most litigious in the world, has gotten so out of hand that your employees can actually sue you for stress. It's downright scary. One lawsuit can cost you everything you own--your home, car, savings, investments--absolutely everything."

How can you protect yourself? "Knowledge is power. The first step is to become fully informed about the process. Only after you become aware of the purposes behind the process can you begin to take action." Brette encourages everyone to learn about the tools available for combating legal risk, such as insurance, business and land trusts, transmutation agreements, etc. "Fortunately, this list of tools is expanding. Unfortunately, so are the theories of legal recoveries." Here are a few of Brette's recommendations on the basics of asset protection:

* Don't rely on oral contracts to protect yourself. They can be difficult to prove, but don't make the mistake of thinking they can't be enforced. They most definitely can. Be careful about what you promise orally; it may be construed later as constituting an oral contract.

* Do business in a limited liability form whenever possible. If you enter into a joint venture or partnership, you could be...