Prenuptial Agreement Lawyer in Oakville

In Ontario (as per the Family Law Act, Section 52(1)), prenups are formally referred to as marriage contracts entered into by two people who intend to marry or are already married to each other. As per the law, these marital contracts state how both parties agree on respective obligations and rights during the marriage, on separation, dissolution/annulment of the marriage, or on death. 

People who have been divorced before have an awareness of the benefit of settling how assets will be divided while the relationship is good to avoid the risk of going through a messy divorce again and needing legal intervention in the court system. Often, previously divorced or widowed people also want to balance what a new spouse will receive and what children from a previous relationship will receive, with their estate planning goals to ensure children from a previous relationship will receive an inheritance.

While prenups are still more commonly done when one or both spouses have been married before than with both people marrying for the first time, more and more people marrying for the first time are choosing to have prenups. Perhaps it is because people are older and more pragmatic on marriage now than ever before. They understand that having a prenup, although not terribly romantic, doesn’t increase the chances of a divorce any more than having car insurance doesn’t increase the chances of a car accident or having life insurance doesn’t increase the chances of death. 

If you own a home in your name only, it becomes a “matrimonial home” after you marry and live in it together.  The Family Law Act gives the matrimonial home special status regarding property ownership. The equity in the home is divided 50-50 regardless of whether the home is registered in the name of one spouse only, or if one spouse purchased the home and paid the mortgage and property taxes for years prior to the marriage. Prenups are the only way to protect the equity you have built in your home prior to marriage,  by ensuring you get a credit for the equity on the date of marriage so you divide the increase in value only, or even to ensure the other spouse will have no rights to the equity in the house at all. With a prenup, you can override the Family Law Act with what you and your spouse feel is right for you as it relates to property division on separation or if one of you predeceases the other, and with respect to spousal support. A Sunset Clause can also be included to specify when the agreement, or parts of it, will expire.

In simple terms, marriage contracts or prenups state how financial matters and property are to be handled during a marriage or in the event of a breakdown (divorce, separation, or death).

In the absence of a prenup, you/your partner would be forced to follow the default provisions of the Family Law Act when handling finances and property. A prenup allows you to opt out of or modify default provisions under the Ontario Family Law Act.

Don’t leave your financial future to chance. Enter marriage in confidence and fairness. Learn more and debunk the myths about prenups and prenuptial law by talking to experts.