Prenuptial Agreement In Canada

A Prenuptial Agreement in Canada is a legally binding contract entered before marriage. In some provinces and territories, the term Prenuptial Agreement is commonly referred to as a domestic Contract or a Marriage Contract. A Prenuptial Agreement in Canada is also referred to as an antenuptial agreement or premarital agreement and is abbreviated as “prenup.”

If Couples sign a written contract before they get married, then it is a prenuptial agreement, and if they sign the written contract after they are married, then it is a marriage contract. Whereas, if a common-law couple enters into an agreement of similar nature, it is referred to as a Cohabitation Agreement in Canada.

Therefore, the difference between a Prenuptial Agreement and a Marriage Contract is the date when the agreement is being executed between spouses, whereas the type of relationship differentiates a Prenuptial Agreement and a Cohabitation Agreement in Canada.

In Canada, we do not have federal legislation dealing with marriage agreements or domestic contracts. Provinces and territories have enacted provincial laws to deal with the issue of marriage agreements and domestic contracts.

In this article, we will specifically refer to a Prenuptial Agreement, but the legal nature and effects of all domestic agreements and marriage contracts are similar, such as they seek to protect parties’ assets, debts overflow, support, and children.

What is a Prenuptial Agreement?

A prenuptial agreement, also known as a marriage contract in Ontario, is a legal document entered into by a couple before they get married or enter into a common-law relationship. This agreement outlines the ownership of the couple’s respective assets and how these assets will be divided should the marriage end in divorce.

Here are some key points to understand about prenuptial agreements:

Asset Protection: A prenuptial agreement primarily protects each party’s individual rights to their premarital assets. This means that the wealth or property you bring into the marriage remains yours in the event of a divorce.

Financial Responsibilities: The agreement can stipulate the financial responsibilities of each party during the marriage. It can detail who will pay for what, how joint expenses will be handled, and how much each party will contribute to joint savings or retirement accounts.

Debt Protection: A prenuptial agreement can also protect you from your partner’s debts. This means that if your partner has significant debts before marriage, you can stipulate in the agreement that you are not responsible for these debts in case of divorce.

Estate Planning: Prenuptial agreements can be a useful tool in estate planning. They can ensure that specific assets or family heirlooms are passed on to children from previous relationships or other designated heirs.

Spousal Support: The agreement can set out the amount and duration of spousal support, although it’s important to note that courts can override these provisions if they are not in the recipient’s best interest.

While it may seem unromantic or pessimistic to plan for the end of a marriage before it has even begun, a prenuptial agreement is, in reality, a practical tool that can provide a clear financial roadmap for a couple. It can help avoid potential conflicts and ensure a fair and equitable distribution of assets in the event of a divorce.

Tip 1

Talk About Finance

It is important to discuss your finances before entering into a relationship as a married couple or as a common-law partner.

Although bringing up this topic could be challenging, it must be addressed. Couples moving in together or getting married could have profound financial implications during Divorce or Separation. The purpose of a Prenuptial Agreement in Canada is to make sure both spouses are treated fairly.

Do remember that a Judge will consider a Prenuptial Agreement when making a decision on the division of property and support.

Tip 2

What Does A Prenuptial Agreement Contain or Cover?

What is the purpose of a Prenuptial Agreement?

A Prenuptial Agreement in Canada will set what property, asset, or debt each person is bringing into the marriage and shall specify the terms and conditions of the division of ownership of property, assets, debts, and spousal support at the time of separation or divorce. In essence, the purpose of a Prenuptial Agreement is to avoid the equalization of net family property, the entitlement of and payment of spousal support, and other family affairs.

Some Prenuptial Agreements may cover the issues relating to the children brought into the marriage. However, a prenuptial agreement cannot cover decision-making responsibility and parenting time concerning children.

The structure of the Division of Property can be incorporated in the Divorce Order if stated in the Prenuptial Agreement.

The standard theme of the document is that the property and debt brought into the marriage by individuals remain their property or debt, and any property, asset or debt acquired in individual names shall remain their own. However, one must speak to a lawyer before signing a Prenuptial Agreement in Canada.

IT IS NOT WORTH SAVING FEW DOLLARS WHEN IT COMES TO IMPORTANT DECISIONS IN YOUR LIFE!

Tip 3

Why Do You Wear A Seat Belt?

Why do you wear a seat belt? Because it will protect you in case of an accident.

When you are on the road as a driver or passenger, you hope your journey will be without any accidents, but you still take precautions to protect yourself by fasting your seatbelt. Similarly, a Prenuptial agreement is insurance for your marriage or common-law relationship.

In the unlikely event of a Divorce or a Separation, both parties can save hundreds of thousands of dollars in Legal Costs, emotional trauma and unfair treatment. The essential purpose of a Prenuptial Agreement is to set terms on how to split your assets, liabilities, and support in the event of separation or divorce.

The common question is, WHY DO I NEED A PRENUPTIAL AGREEMENT IN CANADA? One must consider if they are living as a Common-law Couple or planning to Get Married. This could have profound legal implications affecting your finances.

Parties may want to ensure they protect the property they own before and after marriage.

WHAT IF YOU DO NOT HAVE ANY ASSETS OR LIABILITIES BEFORE MARRIAGE? DO YOU STILL NEED A PRENUPTIAL AGREEMENT IN CANADA? Let us presume that both of you as a couple do not have any assets or liabilities at the time of getting married or moving in together.

A thought may cross your mind that it would not be worth spending hundreds of dollars in Lawyer’s Fees in such a situation. The cost of a Prenuptial Agreement ranges from $499 to $2,000 +HST, whereas the cost of litigation would range between $10,000.00 to $90,000.00 + HST.

On the other hand, you may not have any debts before marriage. Still, during a wedding, you could acquire debt resulting in severe legal and financial consequences if you separated or divorced.

Then it would be wise to enter into a marriage contract to ensure that in the unlikely event of a break up of a marriage, you are protected, and your assets are protected.

Therefore it is always essential to have a Prenuptial Agreement. A good prenuptial agreement Lawyer will always advise couples to have a Prenuptial Agreement in Canada. Also, read Tip 8.

Tip 4

Full And Frank Financial Disclosure

Make a List of Assets and Liabilities and exchange Income information.

When couples are dating, they are not thinking about the realities of life when they move in together. It is crucial to list the assets and liabilities each partner brings into marriage. This will ensure that both parties have made full and frank financial disclosure to each other before the commencement of their relationship.

Couples should discuss their arrangements concerning property or assets acquired in individual names and any debt incurred in personal names. The rule of thumb is that any property owned in an individual’s name remains theirs unless the property is jointly purchased and vice versa for Debt.

Tip 5

Are You Planning To Leave Your Job For Marriage

Talk About Spousal Support

You may move cities, provinces or counties to start a new life. You may have a well-established career ahead of you, but since you are in love, you are willing to give up your job. It would be best to discuss Spousal Support if a marriage breaks down. A prenuptial Agreement should contain provisions to protect you if you give up your job and career for marriage. You are bringing into the marriage. This will ensure that both parties have made full and frank financial disclosure to each other before the commencement of their relationship.

Couples should discuss their arrangements concerning property or assets acquired in individual names and any debt incurred in personal terms. The rule of thumb is that any property owned in an individual’s name remains theirs unless the property is jointly purchased and vice versa for Debt.

Tip 6

What About Children

If you have children from a previous relationship, you must address these issues in a Prenuptial Agreement. You want to ensure the custody issue is spelled out in transparent ink. Once the custody issue is handled, you want to ensure that the issue of child support is also taken care of in the Prenuptial Agreement.

Tip 7

Speak To A Lawyer

Think Twice Before Using a Prenuptial Agreement Template

While it may be tempting to cut corners and save a few dollars by utilizing an online Prenuptial Agreement Template, we strongly caution against it. The money saved today could potentially cost you significantly in the long run. It is prudent and beneficial to engage a Prenuptial Agreement Lawyer for the creation of your agreement.

Online Prenuptial Agreement Templates may seem like a cost-effective option, but they carry inherent risks. Even if you opt for a template, both parties must secure an Independent Legal Advice (ILA) certificate from a lawyer, thereby diminishing the cost-saving aspect. Additionally, it is critical to note that if a Prenuptial Agreement contravenes family laws, a judge in Canada can dismiss it. Thus, the risks associated with an online template far outweigh the potential savings.

It is of paramount importance for couples to obtain Independent Legal Advice, as you wouldn’t want to end up in a situation where a judge invalidates your Prenuptial Agreement. An experienced Prenuptial Agreement Lawyer will offer insights into various issues and provide guidance tailored to your specific circumstances – a level of personalized attention that online templates can’t provide.

While one lawyer can technically handle the drafting of the entire agreement, the other party must still obtain Independent Legal Advice to avoid a conflict of interest. An expert lawyer will not only reinforce the agreement by ensuring adherence to legal protocols but also ascertain that the agreement is compliant with all Legal Requirements under Family Laws.

A poorly crafted agreement could lead to a party claiming ignorance about the implications of what they were signing, making the agreement non-binding. In contrast, a competent Prenuptial Agreement lawyer ensures that the agreement is drafted meticulously to ensure its legal validity.

Even with the best of intentions and hopes for a lifelong union, it is a practical move to protect your assets from any unforeseen circumstances. At Shaikh Law Firm, we have offices across the Greater Toronto Area (GTA) to accommodate our clients. Our Prenuptial Agreement Lawyer in Toronto Downtown can meet you in person, Online, or you can opt for a phone consultation. We also have meeting locations in Mississauga Square One, Mississauga on Derry and Hurontario, and Mississauga Streetsville, as well as in Brampton, Oakville & Hamilton. To find a Prenuptial Lawyer near you, please visit our Contact Us page.

Prenuptial Agreement Cost

Prenuptial agreement costs in Ontario range from $750 to $3,600, depending on the complexity and the services provided by the lawyer. Typically, basic agreements priced at $750 do not include detailed financial statements. At our firm, a prenuptial agreement costs $1,980 + HST, which includes all necessary documents, including financial statements and services that could cost up to $3,000 plus tax at other law firms. We offer a cost-effective solution compared to other law firms, offering not only cost-effectiveness but also significant protection against potential litigation costs, which can escalate from $10,000 to $90,000 + HST.

$ 1980 + HST

Prenuptial Agreement Consultation
Drafting all Prenuptial Agreement Paperwork
Certificate of Independant Legal Advice
Spousal Support
Exclusion of Property
Drafting of Financial Statements
Child Support
Five billable hours

Popular

$ 3600 + HST

Prenuptial Agreement Consultation
Drafting all Prenuptial Agreement Paperwork
Certificate of Independant Legal Advice
Spousal Support
Exclusion of Property
Drafting of Financial Statements
Child Support
Ten billable hours

Tip 8

Not Just For The Well-To-Do

We often think that prenuptial agreements are to protect the wealthy, but it can work both ways. If you consider yourself financially at risk, such as incurring unknown and unnecessary debt, then a Prenuptial Agreement can protect you in case of separation or divorce.

One of you may give up your career to care for children and become a stay-at-home parent. If so, that person is likely not developing new skills for a job, so the prenuptial agreement could give that partner protection so they will receive a fair settlement for making that offering.

People often believe prenuptial agreements are about protecting assets and property, but they can also cover debts that are brought into the marriage or that you obtain during your wedding. One of you may be entering the marriage with significant debt. If you separated, this debt would be halved, just like anything else if you don’t have a prenuptial agreement. You can disclose that any previous debt brought into the marriage will not be transferred to the other partner and will stay as their debt when drawing up these agreements.

Another example would be if one of you were expecting to receive some inheritance during the marriage. You may not wish to share that with your partner. You can protect that with the contract to ensure it stays yours rather than being shared, but you would need to keep the inheritance separate from anything communal.

Pensions can be a significant asset in a prenuptial agreement and must be discussed. You will be asked to sign a record that says you are waiving your right to any retirement investment in case of a divorce. This may be separate from your agreement but will be attached to the document and released to everyone involved in the pensions, such as employers and pension plan administrators, on this notice.

Tip 9

Courts Can Set-Aside A Prenuptial Agreement In Canada

Yes, in any domestic Agreement, including a Prenuptial Agreement or a Marriage Contract or Cohabitation Agreement, a Judge can set aside Canada if the Judge finds the following evidence and it is established in Trial.

Duress: If one of the spouses was forced to sign the Agreement, it was not a voluntary signature.
Material Misrepresentation: If one of the Spouses has not disclosed full and frank financial disclosure.
Unconscionable: The terms of the Agreement are hard, unfair, and unjust and will not hold fair in Court.
Undue Influence: if one party holds an influencing position to force the other to sign the contract.

One must note that it would be challenging to overrule a Prenuptial Agreement if the parties have obtained Independent Legal Advice (ILA) and have attached full financial disclosure.

FAQs

How does a prenuptial agreement protect me?
A prenuptial agreement protects you by outlining how your assets will be distributed in the event of a separation or divorce. It can protect your separate property, define what property is marital, inheritance or shared, support your estate plan, and reduce conflicts and save money in the event of divorce.
Is a prenuptial agreement enforceable in court?
In Ontario, a properly drafted and executed prenuptial agreement is enforceable in court. However, it can be challenged on various grounds, such as non-disclosure of financials such as assets, undue influence, or unfair terms. That’s why it’s crucial to seek the help of a knowledgeable lawyer when creating a prenuptial agreement. It is common for Ontario Courts to overturn templates signed by parties since they lack basic principles and requirements of the Family Law Act.
Can a prenuptial agreement be amended or revoked?
Yes, a prenuptial agreement can be amended or revoked after marriage, but both parties must sign any changes or revocation in writing. It is best to speak to a prenuptial Agreement lawyer in Toronto to help with any changes to the Agreement.
How long does it take to create a prenuptial agreement?
The time it takes to create a prenuptial agreement depends on several factors, including the complexity of the couple’s financial circumstances and how quickly the couple can reach an agreement on the terms. Our team at SHAIKH LAW FIRM works diligently to ensure a timely process. At Shaikh Law, it takes around three to four days to prepare a prenuptial Agreement from the date all documents are provided to the Lawyer.
Can a lawyer represent both parties in a prenuptial agreement?
NO !! It is highly recommended that each party in a prenuptial agreement has their own legal counsel. This ensures that both parties fully understand the agreement and that it is fair and balanced.
How can SHAIKH LAW FIRM help me with my prenuptial agreement?
At SHAIKH LAW FIRM, our experienced lawyers can guide you through every step of the process, from drafting and reviewing the agreement to providing representation if disputes arise. We offer a personalized approach, ensuring that your agreement is tailored to your unique circumstances and protects your interests.
What Happens If You Sign A Prenup And Get Divorced?
If a marriage ends in divorce, the prenuptial agreement serves as a guide for the distribution of assets and other financial matters. LEARN MORE.
What Should A Woman Ask For In A Prenup?
As a woman, it’s crucial to know what to ask for in a prenup to protect your rights and secure your future. Key considerations include property rights, spousal support, retirement benefits, and much more. However, every situation is unique and requires careful deliberation. LEARN MORE.
Why Cheap Online Templates Are a Risky Business?
Cost-effective and seemingly convenient, cheap online prenuptial agreement templates can pose significant risks. These generic forms often fail to account for unique circumstances, individual state laws, or recent changes in legislation. Moreover, they can omit crucial clauses and lack the detailed precision needed in such agreements, potentially resulting in legal disputes or an unenforceable prenup. Hence, professional legal guidance is always recommended to ensure a thorough, fair, and binding prenuptial agreement.
Prenuptial Agreement Ontario: A Comprehensive Guide
Navigating the intricacies of prenuptial agreements in Ontario can seem daunting. These agreements, pivotal in protecting your assets and rights, must adhere to specific legal frameworks and standards to be enforceable. Understanding the nuances of these agreements in the context of Ontario’s laws is crucial to crafting a valid and fair prenup. To learn more, delve into our comprehensive guide on Prenuptial Agreement Ontario. Also, visit our page about 9 Tips you must know about Prenuptial Agreements in Canada.

Remember, our initial 15-minute consultations are always free, and we’re here to answer any additional questions you might have. Contact us today to get started.

We Serve Clients Across Ontario

Multiple Meeting Locations

Call us

(905) 795 7757

E-Mail

info@slclawyer.ca

Fax