1) Keep a low profile. A flashy lifestyle is like chum in the water for the circling schools of lawsuit-happy lawyers and litigants. If people think you are rich, your chance of being sued skyrockets. One way to lower your profile is to not title your assets directly in your own name. Instead, use privacy-protected offshore corporations, family foundations or an asset protection trust (APT). 

2) Shrink the pot. Let’s say you own a number of rental properties. A tenant slips and falls at one of these places and decides to sue you. Unless you take precautions, total damages could amount to the value of ALL your rental properties. Whether it’s a rental property, a restaurant, or something else, segregate risks—consider creating a separate corporate entity for each liability generating asset. Also, never mix liability generating assets. For example, an apartment house should not be owned by the same entity that owns a restaurant. 

3) Going offshore adds another layer of protection. Whether it’s in an insurance wrapper, retirement annuity or asset protection trust, placing your assets offshore puts them out of reach of most frivolous lawsuits. Even lawsuits with an ax to grind may be ready to settle for pennies on the dollar when they find out how difficult it is to collect your money offshore. For example, if you invest your retirement plan in a suitable jurisdiction — Switzerland, for instance — it can be configured to be essentially claim and judgment-proof. 
Another alternative is a self-settled asset protection trust. As long as they are irrevocable, have an independent trustee, provide for distributions that are subject to the discretion of the trustee, and meet some other requirements, there’s little chance they can be revoked absent criminal or fraudulent activity. 

4) Avoid general partnerships. In this form of business, you’re personally liable for all debts or other business liabilities the partnership incurs. Any general partner can commit the partnership (and hence every other general partner) to any legal contract (like taking out a loan). In today’s litigious society, it’s a high-risk way of doing business. 

5) Protect assets from taxes, too. If you form a foreign corporation that generates “active” income from foreign trade or business (not passive income from investments), and the business is also managed offshore, in most cases, you don’t need to pay taxes on the profits until you repatriate them.