What is a marriage agreement? Why might I need one? This is a question our family lawyers get asked very often.

Most people know that they should get a marriage agreement. Some people choose not to because they have a hard time speaking about it with their spouse.

If you plan to have children and if you have any property or debts, it is very important that you get a marriage agreement.

Spending a few thousand today might save you tens or even hundreds of thousands of dollars in the future.

What goes into a marriage agreement can be as simple or as complex as the client chooses. Most commonly it includes a list of assets and debts both spouses are bringing into the marriage.

What should be included in a marriage agreement?

A marriage agreement, also known as a prenuptial agreement or a premarital agreement, is a legal document that outlines the terms and conditions of a couple’s financial and property rights in the event of a divorce or death.

It is important to consider having a marriage agreement in place to protect your assets, define your financial responsibilities, and clarify any expectations for the future of your relationship.

When creating a marriage agreement, it is crucial to consider the financial and property rights of both parties. This includes any current assets, such as real estate, bank accounts, stocks, or investments, as well as future assets and income.

A marriage agreement can outline how these assets will be divided in the event of a separation or divorce, and can also provide for the distribution of property in the event of death.

Define financial responsibilities

In addition to protecting assets, a marriage agreement can also define financial responsibilities within the marriage. This includes details about how bills will be paid, how much each party will contribute to household expenses, and what will happen in the event of a loss of income.

It is important to note that a marriage agreement must be signed voluntarily by both parties and must be fair and reasonable. The agreement should be in writing and signed by both parties before the wedding takes place. If a court finds that the agreement was not entered into voluntarily or is unreasonable, it may not be enforceable.

In conclusion, a marriage agreement can play an important role in protecting your financial and property rights in the event of a divorce or death. Working with a qualified family lawyer can help you understand the benefits of a marriage agreement and ensure that your agreement meets the necessary legal requirements.

By taking the time to create a comprehensive and well-informed marriage agreement, you can protect your future and ensure that your rights and interests are protected.

Are marriage agreements legally binding?

The legality of marriage agreements, also known as prenuptial agreements or premarital agreements, in Canada, is a topic that often raises questions. In general, marriage agreements are considered legally binding in Canada, provided they meet certain requirements.

One of the key requirements for a marriage agreement to be considered legally binding is that it must be entered into voluntarily by both parties.

This means that both parties must sign the agreement freely and without any duress or undue influence. If a court finds that one party was coerced into signing the agreement, it may not be enforceable.

Protect the assets of both parties

Another requirement for a marriage agreement to be legally binding is that it must be reasonable and fair. This means that the terms of the agreement must not be unjust or excessively one-sided. For example, an agreement that completely disinherits one party or leaves them with nothing would likely not be considered reasonable.

It is also important to note that a marriage agreement must be in writing and signed by both parties before the wedding takes place. This is to ensure that both parties fully understand the terms of the agreement and agree to them before entering into marriage.

Marriage agreements can be legally binding in Canada, provided they meet certain requirements such as being entered into voluntarily, being reasonable and fair, and being in writing and signed by both parties before the wedding.

What are the benefits of having a marriage agreement?

The benefits of having a marriage agreement in place are many and can help to protect your financial and property rights in the event of a divorce or death. Some of the key benefits of having a marriage agreement include…

-A marriage agreement can clearly outline each party’s property and financial rights, providing a clear understanding of what each party is entitled to in the event of a separation or divorce. This can help to avoid costly and time-consuming legal battles later on.

-A marriage agreement can protect the assets of both parties, ensuring that each party’s rights to their property are respected and upheld in the event of a separation or divorce.

-Having a marriage agreement in place can provide peace of mind, knowing that your financial and property rights are protected and that your future is secure.

-Marriage agreements can be customized to suit the specific needs and circumstances of each couple. This allows for flexibility and the ability to address unique concerns or financial arrangements.

-If a separation or divorce occurs, having a marriage agreement in place can make the process smoother, as the terms of the agreement are already established and agreed upon by both parties. This can save time, money, and emotional stress.

Marriage Agreement- Does It Ruin the Romance?

Most couples start thinking about getting a marriage agreement after one spouse proposes to the other and the proposal is accepted.

The date of the wedding is set and the wedding is being planned. At the same time, the spouses know that financial planning is an important legal preparation. The challenge is that this is a very romantic time in the relationship and neither party wants to discuss the possibility of divorce.

The divorce rate is currently approaching 50%. Very few people that get married think they will be part of the 50% that get divorced.

Spouses need to understand that planning is important even if they don’t believe that they will ever get divorced. The marriage agreement sets out what will happen to assets and debts if a divorce occurs. It is also a good idea to include terms regarding spousal support, child support, and a child custody access plan.

It is important to note that family judges do not have to accept the marriage agreement terms regarding child custody. Family judges almost always make decisions based on what is best for the children, not the parents.

How The Family Law Attorneys Can Help You

• planning when entering into a marriage
• getting information on spousal support
• prenuptial agreement
• financial disclosure requirements
• family legal issues
• separation agreements

Be Honest About Your Assets

The main advantage of the marriage agreement is that you get to decide with your spouse what will happen to your assets, money, and children versus a third party deciding.

If you do not have a marriage agreement and you go to court or arbitration, either the judge or the arbitrator will make the decision for you.

It can upset people greatly when it comes to decisions regarding their assets and children being in the hands of someone else.

While drafting the agreement, it is important, to be honest about your assets and debts.

If in the future, your spouse can prove that you lied or hid assets then the marriage agreement can be deemed void by a judge.

This defeats the purpose of what you were trying to do when protecting your assets with the agreement.

When Should You Create The Marriage Agreement?

It is also important for you to sign the agreement long before the wedding occurs.

If you sign a few days before the wedding, a spouse can later claim they only signed the agreement because they were under pressure due to the wedding date.

If you are unable to sign an agreement before the wedding you can always do a postnuptial agreement. There is no legal difference between a pre or post-marriage agreement.

Just an FYI, 6 weeks is really not long enough lead time to do a marriage contract.

To do it right both sides need to disclose financials, an agreement has to be drafted, possible negotiations, and then the other side has to get ILA. And you do not want the appearance of pressure put on one side to sign.

I’ve seen too many agreements fail afterward (when they come for separation) on the basis of a hasty poorly written marriage contract. 3 months would be a minimum and truthfully 6 months-1 per year is ideal.

Independent Legal Advice for Marriage Agreement

It is also important for both parties to get independent legal advice from separate family lawyers. Often one of the spouses will hire a family lawyer to create the separation agreement.

The lawyer will then send the agreement to the other spouse for review. That spouse should then take the agreement to another family lawyer to receive independent legal advice. This is important so that both parties understand the agreement.

Also, both spouses will have a chance to speak to a lawyer about their own personal concerns.

I.L.A makes the marriage agreement much stronger as neither party can claim that the family lawyer who drafted the agreement was representing both spouses’ interests at the same time.

The agreement must be fair and take both parties’ interests into consideration.

If you decide to include information about children, then the agreement must be in the best interest of the children.

This is a crucial step so that a judge will uphold the terms of the marriage agreement in case of further separation.

What Is A Prenuptial Agreement?

A question the lawyers often get asked is, “What is the difference between marriage, postnuptial, and separation agreements?”

The agreement happens before you get married and there’s no expectation of divorce.

On the other hand, a postnuptial agreement happens if you are already married and want to do something like an insurance policy, and you are not actually going through separation or divorce.

A separation agreement happens during a breakup or divorce. It ends the relationship.

A prenuptial agreement is an American term. In Canada, we call it a marriage agreement.

How many years does it last? 

Much like in any other contract, a prenuptial agreement lifespan depends upon the terms stated in the contract.

You and your partner might agree that the agreement only remains operative during the first 10  years of your marriage.

Another option is to include terms that dictate that your separate property becomes a joint property after a specified period of time.