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Forbes
6 days ago
- Business
- Forbes
How To Protect Business Interests With A Prenuptial Agreement
Julia Rodgers, CEO of HelloPrenup, champions collaborative prenups and promotes financial communication in marriage. When starting or investing in a business, there is no shortage of advice on how to protect yourself: form an entity that shields your personal assets, purchase general and professional liability insurance, be prudent in not mixing personal and business finances. Yet many business professionals don't realize how much risk they take on by not having a prenuptial agreement. How can a prenup protect your business interests? Continue reading to uncover the answers to your questions and to learn more about protecting the future of your business investments. Why Protect My Business In Marriage? In a divorce, courts divide marital assets and debts between you and your partner. Whether that means awarding your ex-spouse half the fair market value or a share of the sale proceeds, your business interests will likely be divided in a divorce. Regardless of when you started your business—before or during marriage—your spouse will likely have a right to participate in the business's appreciation during the years you were married. A court will see this increase in value as partly attributable to your marriage and to your spouse. Say you left for work every day for a decade while your partner sacrificed a potential career to stay home and take care of the kids. Or your spouse contributed behind the scenes as your sounding board or brainstorming partner. There are countless ways a court sees a marriage as contributing financially or otherwise to a person's career and business success, and they're prone to award the non-business spouse a share in the profits upon divorce. How Can A Prenup Protect My Business Interests? A prenuptial agreement allows you to categorize your assets as separate property or marital property. You and your future spouse get to predetermine how your assets and debts will be distributed in the event of a divorce. Imagine the headaches, confusion and legal expenses you can avoid by having these conversations now as opposed to during a divorce when you're less likely to negotiate harmoniously. In your prenup, classifying your present and future business interests as separate property can protect them from being divided in a divorce. You can also categorize intellectual property as separate property and include a confidentiality clause to prevent your partner from sharing or using your trade secrets and privileged information against you or in competition with your business. If you're in a situation where you and your spouse started a business together, a prenup will allow you both to clarify the responsibilities and protocol should a divorce happen in the future and help ensure your company continues to run smoothly throughout the process. How Do Courts Divide Property Without A Prenup? States apply one of two distinct approaches when dividing marital property in a divorce: community property and equitable distribution. Community Property: In the United States, only nine states apply community property law. These states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In these states, everything acquired during marriage is assumed to be community property and is generally divided equally regardless of who earned the property. Property acquired before marriage or during the marriage as inheritance, gift or personal injury settlement is classified as separate property and is usually safe from distribution. Equitable Distribution: Alternatively, states that follow equitable distribution attempt to divide assets and debts fairly (and not always 50/50) based on the circumstances. These states take a deeper look into the facts of the marriage, such as who earned the assets, who incurred the debt and the length of the marriage. What Other Topics Should I Consider When Protecting My Business Interests? There are many areas in which your business interests could suffer if not adequately protected beforehand. Here are some additional areas where your business might be vulnerable: If you're hoping to sell your company, buyers want to see a clear chain of title. If ownership shares in your company are split with your ex-spouse, this could muddy the waters and make the purchase of your business less appealing. Moreover, if you're tied up in a divorce litigation, aspects of your company might be affected; this could make your entity, along with its financial stability and valuation, appear risky. It is critical for any business that its shareholders and members have the ability to vote and manage the entity free from outside influence. If your shares and voting rights are split with your ex-spouse during a divorce, your ex-spouse might become an unwanted partner with influence over the trajectory of the business. If you're stuck in a situation where your ex-spouse is about to receive voting rights in your company, you could offer to buy them out. Of course, this could significantly alter the cash flow of your business or deplete your personal finances. Depending on your partner's willingness to find a solution, there are ways around sacrificing control of your business; they just might be pricey. Your company's governing documents (i.e., bylaws, operating and partnership agreements) should address the issues discussed above. For example, your operating agreement can limit a future ex-spouse to a financial payout with no voting or control rights. The language in your governing documents should align with the terms of your prenuptial agreement. Conclusion Entering a lifetime commitment through marriage is similar to entering a business partnership minus the romantic aspect, of course. You are merging your life with someone else's. You wouldn't invest in a business without having an agreement in place to outline the expectations of the parties involved. It stands to reason that you and your future life partner could similarly benefit from an agreement clarifying financial expectations and how you might divide assets and debts in the future. The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Entrepreneur
02-07-2025
- Business
- Entrepreneur
I Got a Prenup to Protect My Business and My Marriage — Here's Why You Should Too
Get a prenup to protect your business, stay in control of its assets and income, and secure long-term financial clarity and peace of mind. Opinions expressed by Entrepreneur contributors are their own. I'm a business owner. I know what it feels like to want to protect your "baby" — your business — while also committing fully to a marriage. When I got engaged, my company was growing fast and I knew I needed to protect it. So I got a prenup. Spoiler alert: you can absolutely have both — a happy, healthy marriage and a secure, thriving business. And for the skeptics out there: no, a prenup isn't a bad omen for your relationship. It's no different than getting health insurance — it's not because you expect something bad to happen, but because you're being smart and prepared. Here's why every entrepreneur should seriously consider a prenup: 1. Protect your business from becoming marital property When you get married, your spouse may automatically gain rights to certain assets — including your business — even if they weren't involved in building it. A prenup allows you to designate your business as separate property, keeping it out of the marital estate and protected in case of divorce. Related: 4 Truths Married Entrepreneurs Need to Believe in Order to Build Success at Work 2. You decide what happens — not the state Without a prenup, state laws determine how your assets are divided if your marriage ends. That includes your business. A prenup gives you the power to decide how your business is treated — not the state legislature or a judge. 3. Clarify ownership and income A strong prenup can outline not just ownership of your business, but also how income from the business is treated. Without that clarity, income generated during the marriage could be seen as joint property — and subject to division. You've worked too hard to let that happen. 4. Structure your business to limit future claims A prenup is one layer of protection, but a smart business structure is another. Forming an LLC or corporation and having an operating or shareholder agreement in place can help define ownership, restrict transfers and limit exposure if a divorce ever becomes part of the equation. Related: Being an Entrepreneur Almost Broke My Marriage. Here are 4 Ways Your Relationship Can Succeed Through Entrepreneurship 5. Keep finances separate One of the biggest mistakes entrepreneurs make? Mixing business and personal funds. If you use marital money to grow your business, your spouse could claim a share. Keep business finances separate, pay yourself a fair salary, and document everything — it matters more than you think. 6. Handle it early The best time to protect your business is before the wedding. It's not romantic, but it's realistic. Having these conversations early not only protects you legally, it gives you peace of mind so you can focus on what really matters: building your future together. 7. It actually promotes marital harmony Believe it or not, a prenup isn't just about protecting assets — it can actually strengthen your relationship. It requires honest conversations about money, priorities, family and long-term goals. In fact, 83% of couples who completed a prenup reported feeling closer afterward. Final thoughts A prenup isn't about planning for failure — it's about planning for clarity, protection and long-term success. For entrepreneurs, it's one of the smartest moves you can make. I did it, and I've never regretted it. You don't have to choose between your business and your marriage. With a thoughtful prenup, you can protect both.
Associated Press
14-06-2025
- Business
- Associated Press
biBerk Business Insurance Offers Valuable Insights on Coverage Types and Benefits of Commercial Insurance for Business
06/14/2025, Omaha, Nebraska // KISS PR Brand Story PressWire // Every business—large or small—faces risks. From lawsuits to employee injuries to property damage, the threat of an unexpected expense is always out there. Fortunately, commercial insurance can protect your company. What is commercial insurance? What does it cover? Where and how do you get it? This guide answers these and other crucial questions business owners ask. Read on to learn about commercial insurance policies and why they're essential to your company's financial protection. Real-world commercial insurance coverage scenarios To set the stage for our conversation about why commercial insurance coverage is essential, let's imagine some types of scenarios that happen to U.S. businesses every day: These theoretical events can become actual events in a heartbeat. You don't have to talk with many business owners to find one who's been through one or more of these scenarios. If your business experiences them, you'll need to figure out how to pay the costs. But that reality shouldn't stress you out! These risks are why commercial insurance policies exist. Some people call this type of coverage business insurance, but whatever term is used, the policies provide payment for covered incidents, meaning your business doesn't end up facing a huge expense. That's critical since what might seem like a 'minor' incident can result in major costs—tens or even hundreds of thousands of dollars. Take a so-called slip-and-fall accident, for example. It's winter, and the snow from customers' shoes is melting in the entryway of your store. You're busy and don't have a chance to address the issue. A shopper comes in, slips on the slick linoleum, and falls. They tear a ligament in their knee and have to be transported by ambulance to the hospital. They'll need surgery to repair the damage, post-surgery physical therapy, and time away from work to recover. They sue your business to cover all those costs, which total more than $125,000, and the court finds your company liable. In a flash, what had been shaping up to be a profitable day for your business took a very costly turn. The good news is you have general liability insurance, and your insurer pays your claim, protecting your business from financial disaster. What types and amounts of commercial insurance coverage does my business need? If you were unsure whether your business needed commercial insurance policies, the information above probably has made it clear that every company does! Now, you might be wondering, 'What types of commercial insurance do we need?' That's an excellent question! The answer depends on several factors, including the type of work you do, and state and local insurance requirements for companies like yours. It's important to do some research to determine your needs. State and local agencies in your area will have information on insurance requirements. For example, almost every state requires businesses with employees to have workers' compensation insurance. Your clients or landlord might also have insurance requirements, so it's important to talk with them. Then, if you're purchasing your policies and aren't sure how much you need, biBerk can help you decide on your coverage limits. biBerk offers seven essential commercial insurance policies: Workers' Compensation insurance As mentioned above, states typically require this insurance for businesses with employees. It can pay for related costs if an employee gets hurt, becomes sick, or dies due to an incident on the job. It can cover the person's medical expenses and lost wages during recovery or provide a death benefit to the employee's family. General Liability insurance This policy covers damages and legal costs related to lawsuits from non-employees (customers, for example). That includes lawsuits over bodily injuries and damage to the person's property in your possession. Landlords typically require this type of coverage. Business Owners Policy (BOP) Also called a property & liability policy, a BOP conveniently includes general liability insurance with company property coverage. It can protect a building you own or the space you lease and property needed to run your business, like your equipment and inventory. It also covers business interruption, including lost income resulting from property damage, and costs to resume business operations after suffering property damage (renting a temporary location, for instance). Commercial Auto insurance This policy covers liability from accidents caused by people driving company-owned or leased vehicles. It can protect your business from lawsuits filed by other parties and pay for repairs to your vehicle. The policy can provide payment for an incident even if you use the vehicle for personal activities outside of its primary business use. Errors & Omissions insurance In some industries, this is called professional liability insurance. It can pay the cost of damages and legal fees if someone says your professional advice or service caused them or their business financial harm. Coverage includes mistakes on the part of your business (errors) and the failure to perform a service (omissions). Cyber insurance Purchased as an add-on to a biBerk general liability, professional liability, or business owners policy, this insurance helps cover costs if someone steals sensitive information from you and uses it to commit fraud or is likely to. The policy can pay for specified expenses, including notifying customers and providing credit monitoring. Umbrella insurance This type of insurance can cover the difference when a claim exceeds the limit of another biBerk liability policy—up to the umbrella policy's limit. It keeps you from having to pay the amount that your liability policy won't cover. How to get commercial insurance You've done your research and know what types and amounts of coverage you need, but how do you actually get commercial insurance? With biBerk, it's a fast, straightforward process. You'll surely want to know you'll pay for coverage before making your purchase. You can get quotes for commercial insurance policies online whenever it's convenient. You simply provide some details about your business, and our system assesses the information and provides a quote. And you'll be happy to know that our rates are as much as 20% less than those of other providers, thanks to our direct-to-you approach. We don't work through brokers or other intermediaries, which enables us to offer excellent coverage at great rates. When you're ready to purchase your policies, you also do that online. The transaction is fast and efficient, and your coverage is active as soon as the following day in most cases. Got busy and forgot to purchase insurance for your new business, which opens its doors soon? No problem! We can get you covered quickly so you're protected from risks when you greet your first customer or client. How does commercial insurance work? Commercial insurance works like the coverage you might have for your home or vehicle. If an incident occurs, it's a good idea to take notes about what happened as soon as you can so that you can refer to them later if necessary. Then, you should notify us right away. You can report a claim on our website 24/7 to get the process started. Communication is critical in commercial insurance claims. We'll stay in touch with you, and we ask that you reply as soon as possible to our questions or requests for information. Once we have everything we need, we evaluate your claim and, if your policy covers the incident, provide payment promptly. Our goal is to help you move past an incident as quickly as possible so you can get back to focusing on operating your business, and our claims process is optimized to do that. Buy commercial insurance from a provider you can trust. If you're unfamiliar with business coverage, 'What is commercial insurance?' is a critical question. Once you learn how important financial protection is and how to get commercial insurance, you'll want to connect with biBerk to purchase your policies. Business owners trust us because we've proven ourselves to be a reliable insurance provider for small businesses throughout the U.S. Plus, we're part of the Berkshire Hathaway Insurance Group, with all of our parent company's resources and experience to draw from. Business risks are real, but so is the peace of mind you get from having the right commercial insurance in place. Take action today to safeguard your company's future! About biBerk Business Insurance biBerk can help you with all your small business insurance needs, including: commercial auto, general liability, property and liability, umbrella, and workers' compensation. Media Contact: Rakesh Gupta | 402-408-2870 Source: Release ID: 1579033
