Prenuptial Agreement
A prenuptial agreement sometimes referred to as a premarital agreement, is an agreement between two people who plan to marry that sets out the terms of their financial relationship. The agreement may include provisions regarding property and debt division, alimony or spousal support, and other similar matters in the event of a divorce or death.
Qualifications For Marriage Contracts in Ontario
In Ontario, marriage contracts are agreements between two people who intend to marry. The contract is used to define the spousal rights and obligations of each person prior to entering into a marriage or civil union.
To be eligible for a marriage contract in Ontario, both parties must meet the following qualifications:
- Both parties must be at least 18 years of age
- Both parties must understand the document that they are signing and its implications
- One party cannot pressure or influence the other into signing the agreement
- The agreement must not be unconscionable, meaning it is not so one-sided as to be unfair or oppressive
- The agreement must be in writing and signed by both parties
Difference Between a Prenuptial Agreement and a Marriage Contract in Ontario
A prenuptial agreement and a marriage contract are both legal documents that can be entered into by people who are planning to get married. However, there are some differences between the two.
A prenuptial agreement is usually used when one or both partners have significant assets or debts prior to entering the marriage. This type of agreement sets out how those assets and debts will be divided in the event of a divorce or death. It can also include provisions related to alimony or spousal support.
On the other hand, a marriage contract in Ontario is primarily a document that outlines the rights and duties of each partner during the course of the marriage. This type of agreement discusses issues such as property division, debt division, inheritance, child custody and support arrangements, if applicable. It may also set out rules related to the power of attorney, guardianship and other matters related to financial decision-making during the marriage.
Benefits of Prenuptial Agreement/Marriage Contract
Prenuptial agreements and marriage contracts offer a number of benefits for couples who are considering marriage. These include:
- Establishing financial stability and security before marriage, so that both parties know what to expect in the event of a divorce or death.
- Protecting assets and debts that have been accumulated prior to the marriage, so that they will not be divided in the event of a divorce or death.
- Setting out clear rules and expectations regarding matters such as alimony, spousal support, property division, debt division, power of attorney and guardianship during the course of the marriage.
- Helping to avoid costly disputes in the event of separation or divorce by providing clarity regarding financial rights and obligations.
- Giving each party peace of mind knowing that their finances are secure if something unexpected happens.
The Process of Obtaining a Prenuptial Agreement
Prenuptial agreements and marriage contracts offer a number of benefits for couples considering marriage, such as establishing financial stability and security, protecting assets and debts, setting out clear rules and expectations, helping to avoid costly disputes, and giving each partner peace of mind in the event of separation or divorce. The process of obtaining a prenuptial agreement typically involves consulting with respective lawyers or financial advisors to discuss legal matters such as property division and spousal support; negotiating an equitable agreement; drafting the agreement; signing it once both parties have reviewed it; and filing the final copy with the local court for legal enforcement purposes.
Considerations When Drafting a Prenuptial Agreement
When drafting a prenuptial agreement, couples should consider a number of factors, such as each partner’s debts and assets, their respective expectations for property division, spousal support and retirement planning, and how they plan to handle the management and ownership of any joint assets. In addition, couples may want to discuss who will pay housing costs if they separate or divorce; how they will address any business interests; how future income will be managed; who will be responsible for paying taxes; what provisions they want in place in case either partner dies; and any other matters they deem necessary.
Enforcement of Prenuptial Agreements
Once a couple has drafted a prenuptial agreement, signed it, and filed the final copy with their local court, the courts will typically enforce it if legally valid and properly executed. In order for a court to uphold a prenuptial agreement, both parties must have entered into it voluntarily and without coercion, not have omitted any important information or misrepresented anything material to the agreement, fully disclose all their assets and debts of which they are aware at the time of signing, make sure that each partner consults an attorney prior to signing the agreement if either wishes to do so (though not required by law in most states), be of sound mind when signing (i.e., they understand what they are signing), and sign the agreement before or during their marriage.
Why Choose Us?
Tailor Law is a trusted legal service that specializes in providing tailored prenuptial agreements for couples. Working with an experienced lawyer from Tailor Law ensures that a prenuptial agreement meets all the legal requirements, as well as includes any other specific provisions desired by the couple. Tailor Law provides clear, understandable terminology and guidance through the entire process of setting up a prenup, and their lawyers are available to answer any questions that may arise along the way. With Tailor Law, couples can feel confident that their prenuptial agreement will be enforceable in court should they ever need it.
Tailor Law’s Prenuptial lawyers can assist you in preparing for the worst while hoping for the best. Although you may not think you are in need of this type of agreement, you may regret not having one in place if the relationship fails and things become heated. Tailor Law offers a free consultation with a family lawyer to let you know what your options are and provide information about the prenup drafting process. Give us a call any time at 905-366-0202 to book your consultation with a lawyer.
