A Few Prenup Must-Knows for Canadian Law
You planned the perfect proposal, and the love of your life said yes. You’re elated – you can’t wait to spend the rest of your life together. That is, until your best friend says, “Have you considered a prenup?” Now, you’re confused and wondering if this legal document is a prerequisite to marriage. Read on to learn about the must-know facts about prenup agreements.
What’s a Prenup?
A prenup is short for a prenuptial agreement. “Prenuptial” is a Latin term for “before marriage.”
In Canada, prenups are known as marriage contracts. They’re legal agreements signed before or after a marriage takes place, and they set out the rules for property division in case the marriage breaks up or one member of the couple passes away.
Why Do People Sign Marriage Contracts?
Let’s go back to your friend who thinks you should sign a marriage contract before the wedding takes place. “Why should I do this?” you ask your friend.
“A marriage contract protects both of your rights,” he responds. In a marriage contract, you can spell out how you’ll divide property if you divorce, which means you can keep more of your assets than if you hadn’t signed this agreement. In Canada, property is divided equally in the event of divorce.
In addition, a marriage contract states that one party won’t necessarily assume the debts of the other. Your best friend goes on to explain that he’s concerned the person you’re marrying has lots of debt, and he doesn’t want to see you go broke trying to pay them off.
Is There Anything You Can’t Include in a Marriage Contract?
After talking to your best friend, you’re beginning to see the wisdom of drawing up and signing a marriage contract before your big day. You decide to do a little more research on this type of legal document.
One of the things you learn is what you can’t include in a marriage contract. There are two things that you can’t negotiate through this document: custody of children and rights to the matrimonial home.
“Custody” means the right to make important decisions about a child’s welfare, such as those regarding health, education, religion, and residence. The “matrimonial home” refers to the home in which you live during your marriage. It’s a special type of property. You and your spouse have an equal right to stay in the matrimonial home after your divorce. In order for one of you to rent, sell, lease, sublet it, or mortgage it, you need the other’s permission.
Do You Need a Lawyer to Write a Marriage Contract?
Now that you’ve researched marriage contracts, you are strongly considering writing your own. You’ve talked to your future spouse about the idea, and she’s on board with it. “We can do it ourselves,” she says. “Why spend money on a lawyer?”
Technically, your fiancee is right. You don’t absolutely need an attorney to create a marriage contract. However, it’s strongly recommended that you seek the advice of a lawyer.
An attorney who specializes in family law is deeply familiar with marriage contracts. He or she is an expert on how to phrase this contract so that your rights are protected to the greatest extent possible. Moreover, a lawyer has the legal knowledge to ensure that your marriage contract will stand up in court, should the need arise.
Turn to an Experienced Attorney for Assistance in Creating a Marriage Contract
If you and your spouse-to-be are interested in a marriage contract, contact a legal expert well-versed in this type of agreement. He or she puts your best interests first so that you have peace of mind.
Fine & Associates Professional Corporation is a well-respected Toronto Law Firm that prides itself on providing quality personal service and favourable outcomes in Family Law and Divorce Law.
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