If you are considering marriage, you also should consider drafting a prenuptial agreement (prenup). Although preparing for a divorce might seem like a poor way to enter a marriage, a prenup could help you and your partner resolve financial issues before they become an issue.
A prenup is a domestic contract, and each party should have their own independent legal representation. A Kawartha Lakes prenuptial agreements lawyer help you negotiate a prenup, explain its implications, and ensure the agreement is enforceable. Reach out to a seasoned marital contracts lawyer like Paul Riley to set your relationship up for success.
The law governs how a couple must distribute their property if their marriage breaks down. Each spouse must calculate the change in their net worth since marriage. The spouse who profited more must make an equalization payment of one-half the difference in their gains to the other spouse.
Although this process is usually fair to each party, it might be unfair in your specific circumstances. In addition, you might wish to ensure that specific property remains or becomes the sole property of you or your spouse. A premarital agreement allows you to control how you and your spouse handle property division if you divorce rather than allowing a court to impose a formula.
Negotiating a prenup requires financial disclosure, which could help the spouses decide whether to mingle their finances as a married couple or keep them separate. A valid prenuptial agreement can save you time, money, and stress if the marriage ends. A court could incorporate the agreement into your divorce decree, and you would not need to negotiate the issues it covers.
Most prenups focus on the property the spouses bring to the marriage and describe how they will divide the property they accumulate during the marriage. Though, a prenup could also address spousal support after the relationship ends. If you or your spouse own a business or a farm, your prenup might address whether the other spouse will gain an interest in it after marriage. A skilled Kawartha Lakes prenuptial agreements lawyer could assist you in working through these issues.
A prenup can address other topics that might be relevant in your case. The prenup might address whether either of you can buy, sell, or encumber property without the other’s consent. It could establish an obligation to keep a life insurance policy for the other spouse’s benefit. If either of you entered the marriage with children, a prenuptial agreement could clarify what property the parent intends to leave to their child.
A prenup could discuss aspects of parenthood, like the religious training the child will receive or the language the parents will speak at home. However, prenups cannot determine child support, parental responsibility, and parenting time. In addition, a party cannot waive their possessory interest in a matrimonial home in a prenup.
The law governing domestic contracts applies to prenups. A valid prenuptial contract must be written, signed by both parties, and witnessed. You both must disclose all your assets and debts before signing the agreement. An inaccurate or incomplete disclosure could invalidate the prenup.
Each party must have the opportunity for an independent lawyer to review the document and explain its terms. The Ontario Family Law Act s. 56(4) allows a court to set aside a prenup if one party did not have the benefit of independent legal advice.
The agreement must be essentially fair. Whether an agreement is fair depends on the circumstances, but if the contract calls for one party to give up significant rights without receiving value in exchange, a court might void the prenup. A capable legal professional in Kawartha Lakes could review the circumstances and determine whether a specific prenup might be vulnerable to a challenge.
If you and your spouse have a prenuptial contract, you can enter marriage knowing you each have protected your important assets and have reasonable expectations of the financial aspects of married life. If your marriage breaks down, the prenup could help you avoid contentious negotiations on property division and other issues.
A Kawartha Lakes prenuptial agreements lawyer could discover your financial goals and devise an agreement to help you achieve them. If another firm drafted a prenup, they could review it and ensure you understand its implications. Call anytime, 24/7 to discuss a prenup with a knowledgeable legal practitioner like Paul Riley.
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