Lawsuits against Individuals with Assets

Goals

Identify insights about lawsuits against individuals and determine how many individuals have assets to protect, even if they may not have $25,000 in cash savings. Focus particularly on individuals with wealth concentrated in non-liquid assets, like real estate investors or business owners.

Early Findings

  • Individuals in the 25th to 90th wealth percentiles in the US have the largest percentage of their wealth stored in home equity. The wealthier a person is, the more likely they are to have their wealth stored in business equity or net other financial wealth.
  • According to the Klemm Analysis Group, 36% to 53% of small businesses are sued.
  • Almost 75% of aggregate household assets are in the form of financial assets, mostly stocks and mutual funds, retirement accounts, and closely-held businesses. Real estate makes up the majority of nonfinancial assets.
  • Only 37% of Americans have enough savings to pay for a $500 or $1,000 emergency and 56.3% of people have less than $1,000 in their checking and savings accounts combined.
  • People with a household income of $115,000 or higher have an average savings of $37,645.

Proposed next steps:

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In our initial hour of research, we faced difficulty identifying the number of people that have substantial assets to protect. We recommend dedicating a request to identifying jobs or income circumstances that lead people to have a high concentration of non-liquid assets, quantifying this category of people, and breaking down what those assets are. Our preliminary research suggests that this would include people in the top quartile of wealth, although we would not limit our research exclusively to this category.
Furthermore, we could continue our research to identify 4-5 insights about lawsuits against individuals with substantial assets to protect, like business owners or real estate investors.