Is Borrowing Against Your House a Good Strategy for Asset Protection?

Dan McKenzie • May 6, 2026

If you are a professional in the Denver metro area, you have likely worked hard to build equity in your home. You may have heard that "stripping equity" is a smart move. The idea is to take out a home equity loan so that you appear to have fewer assets. People do this to become a less attractive target for lawsuits. However, borrowing against your house to protect yourself can backfire completely.

The Problem with Stripping Equity

Many people worry about potential lawsuits. They might follow advice to take out a large loan against their property. The goal is to leave very little value for a creditor to take. But this strategy converts a "speculative risk"—something that might never happen—into a "guaranteed obligation."

While a lawsuit is a possibility, a mortgage payment is a certainty. It shows up every month without fail. Whether you are enjoying a weekend in Denver or heading up to the mountains for a ski trip, that bill stays the same. If your income drops or interest rates rise, the bank still expects to be paid.

Trading One Risk for Another

When you use this method, you are simply trading one risk for another. In many cases, homeowners end up losing their property not to a legal creditor, but to the bank. This happens because they can no longer keep up with the new, higher payments. The very thing they did to protect their family became the thing that took everything away.

Real Protection for Denver Families

True asset protection should not put your home at risk. Effective estate planning in Colorado involves strategies that secure your future without creating dangerous new debts. You need a plan that accounts for your retirement savings and protects your children’s inheritance without gambling with your primary residence.

If you are ready to build a plan that actually works, we are here to help. Borrowing against your house shouldn't be your only line of defense.

Schedule Your Consultation Today

Don't rely on risky financial moves to protect what you’ve built. The McKenzie Law Firm, LLC serves the Denver metro area with high-quality legal guidance. We help families like yours create comprehensive plans that stand the test of time.

The McKenzie Law Firm, LLC practices law exclusively in Colorado. This post is for general informational purposes only and does not constitute legal advice. Please consult a qualified attorney regarding your specific situation.

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What Happens to a Bank Account When Someone Dies in Colorado?

By Dan McKenzie • September 15, 2026

Losing a loved one is overwhelming, and many families are surprised to learn that financial matters can freeze instantly after a passing. When a person dies, their legal financial identity stops immediately. This means they can no longer hold property, sign agreements, or authorize payments. Even if you hold a power of attorney—a legal document allowing you to make decisions on someone’s behalf while they are alive—that authority ends the moment they pass away. Families across the Denver metro area are often caught off guard when trying to access funds to pay for immediate expenses.