4. Third party and group litigation spikes. The last recession was a boon to many lawyers, not just bankruptcy attorneys. In addition to the employment, personal injury and intra-company litigation related issues I’ve already mentioned above, we saw significant increases in many other kinds of litigation including:
-Intellectual property claims
-Class actions lawsuits
-Payer lawsuits and audits
-Various business suits where a doctor or some other principal was a partner, both in medical business you may invest in (labs, ASCs, etc.) and many others
5. Fraud Spikes. In particular tax, trust and investment fraud that preys upon your fears and economic pressures. Con men know that promises of massive tax savings and outsize investment returns are more exciting and easier “bait” in tough times. This pressure is also a good end-run around the usual due diligence you’d use to check an offer out, so be especially wary of any limited time or space offers that are sold with pressure tactics of that seek to exclude your advisors.
Most importantly, please remember one of the central ideas of this column; the most cost effective and predictable planning to in protecting your assets is always proactive. You can’t wait for any of the pressures above to manifest until you act to protect yourself, manage your spending or address your risks. It’s got be preventative treatment with the help of a seasoned professional that can help with both identifying and managing risks and creating legal back-up plans.