Why Freelancers, Entrepreneurs, and Online Business Owners Should Get a Prenup

Online business owners hustle to build their brand and online presence. And yet, many of them overlook a crucial tool to help them protect that effort: a prenuptial agreement or cohabitation agreement. 

While prenups have traditionally been associated with the wealthy, more Canadians, especially self-employed professionals, are using them as a practical part of financial and relationship planning. Here’s why a prenup might be one of the smartest contracts you ever sign.

What Is a Prenup?

A prenuptial agreement is a legal agreement made between partners before marriage. It outlines how property, debt, and support will be handled in the event of a separation or divorce. While often associated with wealth protection, a prenup can benefit any couple by providing financial clarity and setting expectations.

A cohabitation agreement is the same thing, but for partners who are not married. 

You Already Have a “Default” Prenup (You Just Didn’t Write It)

Here’s what most people don’t realize: If you don’t have a prenup or cohabitation agreement, your province’s family laws decide what happens to your property, income, and debts if your relationship ends.

In most provinces, the default is equal division of property acquired during the marriage. That can include:

• The value of a business started during the marriage
• The growth in value of a business started before the marriage
• Business equipment and property you own in your name, including your intellectual property
  
  

In many provinces (including British Columbia and Alberta), these default rules also apply to “common law” relationships. This means that property acquired after you start living together can be divided, even if you never get married.

If that’s not how you want things handled, you need a prenup or cohabitation agreement that says something different.

Why do Prenups matter for Coaches, Freelancers and Online Business Owners?

Your business likely represents your primary source of income and future financial security, even if it isn’t a multi-million dollar corporation. It doesn’t matter if your partner doesn’t work in the business or directly contribute to it; without a prenup, the business’s value could be divided if you separate. This can be financially devastating. You may not have the financial resources to pay out half the value and keep the business going. 

In addition, dealing with a fight about how your property should be divided can distract you from running and growing your business. This is where prenups and cohabitation agreements are particularly helpful. They can set a roadmap which reduces conflict and allows you to continue to focus on something positive: growing your business. 

A prenup or cohabitation agreement can also be a positive way to reflect your partner’s indirect contributions to the business. Perhaps they’ve made career sacrifices to care for family so that you can focus on growing your business and brand. You may decide that it’s fair for them to be clearly entitled to spousal support or part the value of the business if your relationship ends. While this choice could be the same as the default laws in your province, setting that out in an agreement in advance can help facilitate the open financial communication and commitment that’s necessary for a long-term relationship to succeed and streamline a separation if it doesn’t. 

Common Scenarios Where a Prenup Helps

1. You Started Your Business Before the Relationship

Let’s say you built your business years before you met your partner. A prenup can clarify that the business and its growth remains your separate property.

2. You Work from Home

If your home is an important part of your business, you may want to make clear that you keep the home if your relationship ends. Say you’ve made renovations to your home to incorporate a client meeting space or a commercial kitchen. Having the first chance to buy your partner out of the home could be essential to the continuity of your business!

3. You Expect Rapid Growth or Outside Investment

A prenup can help protect future gains, particularly if you plan to take on partners, raise capital, or expand. Investors and banks may even request to see your domestic agreements to understand risk exposure.

4. You’re the Breadwinner

If you’re the primary earner through your business, you may face future spousal support obligations if your relationship ends. A prenup can clarify whether and how support is paid, giving you more control over your future financial obligations.

But What If We Never Break Up?

No one starts a relationship expecting it to end. But these agreements aren’t about mistrust, they’re about mutual clarity and planning. In fact, many couples report that having a prenup or cohabitation agreement helped them talk more openly about:

• Shared financial goals
• Debt and spending habits
• Career ambitions and income expectations
• The role of business in family life
  
  

For entrepreneurs and freelancers, these conversations aren’t just healthy, they’re essential.

What Should Be in a Prenup for Entrepreneurs?

An effective prenup should be tailored to your specific business and financial situation. It might include:

• A clear designation of your business (and related assets) as separate property so that it is not divided if your relationship ends
• Alternatively, a clear plan for how the value of the business will be split between you if your relationship ends
• A plan for whether spousal support will be paid
• A framework for revisiting the agreement as circumstances change
  
  

It’s also critical that both partners disclose their financial situations fully and recommended that you both get independent legal advice. These two factors make the agreement more likely to hold up.

How to start making a prenup

If you’re ready to explore a prenup but unsure how to begin, consider starting with a platform like Jointly. It’s a Canadian tool that helps couples build their own relationship agreements, including prenups and cohabitation agreements, with clear, plain-language guidance.

You can use Jointly to:

• Learn about the default laws in your province
• Talk through agreement terms with your partner, and
• Create a personalized agreement based on your needs
  
  

It’s a modern, affordable option for people who want to take control of their financial future without turning it into a complicated ordeal.

Final Thoughts

As an entrepreneur, you’re building something deeply personal and often from the ground up. You wouldn’t launch a product without a plan. So why build a life without one?

A prenup won’t take the romance out of your relationship, it will simply ensure that you’ve got a plan in place and know what to expect, no matter what the future holds for your relationship. Click here to get started.