Business owners invest so much time, energy and resources into their business – that’s why as a business owner, it's critical to plan ahead – before problems arise – to protect your personal assets from the reach of creditors.

This is especially true of self-employed business people, who may be more exposed to liabilities than employees of larger firms or the owners of an incorporated businesses. And even if you have insurance against business risks, it may not be enough to fully protect you in the event of a lawsuit or claim against your assets.

Here are a few strategies that can help creditor-proof your assets. Be sure to speak with legal and accounting professionals to determine which strategies are best for your situation.

Incorporate. As a sole proprietor, creditors can file legal claims against your personal assets such as your home, investments and RRSP. If you incorporate, your business is a separate legal entity and your personal assets are protected.

Split your business into separate companies. For example, the property on which a business sits could be owned by holding company, while the equipment and business assets could be owned by another. As your business grows, different business structures can help you protect valuable assets.

Never give a personal guarantee. While many lenders will demand it, avoid giving any type of personal guarantee to a debt unless you have no other choice. This is especially true regarding debts to landlords and suppliers.

Use insurance-based investments. Investments such as RRSPs, annuities, universal life insurance policies and segregated funds held by insurance companies are often creditor-proof in many jurisdictions.

Places assets in your spouse's or children's names. As long as your spouse and adult children are not directors of the company or guarantors of your business, then any personal assets you place in their name should be beyond the reach of creditors. These assets could include real estate, automobiles, or a spousal RRSP.

Use trusts. Trusts are a separate legal entity. You can often transfer personal assets to a trust while still retaining control as a trustee, and naming family members as beneficiaries.