Segregation of Assets
/ˌsɛɡrəˈɡeɪʃən ʌv ˈæsɛts/
Definitions
- (n.) A legal arrangement where an individual's or entity's assets are kept separate to protect them from claims against other assets.
The segregation of assets helped shield the company's funds from creditors of its parent corporation.
- (n.) The process by which marital property is divided so that certain assets remain individually owned rather than jointly held.
During the divorce, the segregation of assets was used to determine which property was separate.
Forms
- segregation of assets
Related terms
See also
Commentary
Segregation of assets is critical in contexts like bankruptcy and divorce to delineate ownership and protect property; clarity in contractual and trust documents is essential to ensure effective segregation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.