Main Navigation Logo for INB Family Law
Synopsis
  • Common Misconceptions: Addressing myths such as marriage contracts only being for distrustful partners or solely for wealth protection.
  • Truths and Coverage: Clarifying what marriage contracts can and cannot cover, including assets, debts, and spousal support, but excluding rights to the matrimonial home.
  • Creating a Contract: Steps include seeking independent legal advice, full financial disclosure, discussing terms, drafting, and signing the agreement.
Groom Signing Papers at Wedding

Fact vs Fiction

Marriage contracts, or prenuptial agreements, can safeguard both parties and clarify expectations in case of separation. By outlining asset division and other matters, they can reduce divorce-related stress. Our blog aims to provide information about marriage contracts and help you decide if it's right for you.

Common Misconceptions About Marriage Contracts (Fiction)

  • Only people that don’t trust their spouse have a marriage contract.
  • The only purpose is to protect one’s wealth.
  • Marriage contracts can include rights to the matrimonial home.
  • The contract must be drafted and signed prior to marriage.
  • Matters pertaining to children such as who gets decision-making responsibility and the division of parenting time can be included.
  • Both spouses can work with the same law firm to draft the contract.

Important Truths About Marriage Contracts

Scope of Coverage:

They cover assets, debts, spousal support, claims to businesses, and non-matrimonial properties.

Entitlement Without a Contract:

Without one, each spouse is entitled to half the difference in net worth from the date of marriage to the date of separation.

Cohabitation Agreements:

Cohabitation agreements become marriage contracts unless a termination clause is added.

Exclusions

The contract cannot cover rights to the matrimonial home, decision-making responsibility, or parenting time.

Legal Binding Requirements:

It may not be legally binding if either party signed it under duress or didn't fully comprehend the terms or disclose critical information.

Steps to Create a Marriage Contract

Seek Independent Legal Advice:

Both you and your spouse must seek independent legal advice, meaning you cannot work with the same lawyer or law firm.

Financial Disclosure:

Disclose all financial information to each other, including your income, investments, debts, RRSPs, etc.

Discuss Terms:

Discuss with your spouse what you would like to include in the agreement.

Drafting the Agreement:

Your legal counsel will work with your spouse’s counsel to draft an agreement.

Review and Sign:

Once both spouses are satisfied with the agreement and understand all the terms, the written agreement must be signed and witnessed to be legally binding.

If you think a marriage contract may be right for you, the first step is for you and your spouse to seek independent legal device, meaning you cannot work with the same lawyer or law firm. Please don't hesitate to contact us.