Canadian divorce law holds that both spouses should profit equally from their time together. A well-drafted marriage contract can limit a spouse’s share and exclude them from an interest in designated property, but a court might decline to enforce an unfair or unreasonably one-sided agreement.
The high-asset divorce lawyers at the Riley Divorce & Family Law Firm are skilled at negotiating, drafting, challenging, and defending prenuptial agreements for Ottawa high-net-worth divorces. Contact us if a prenuptial marriage contract is an issue in your divorce.
The spouse who profited most from the marriage typically splits the difference with the other spouse. If you and your spouse are a couple with significant wealth, calculating the equalization payment can take months and require the assistance of numerous third parties to establish the value of your assets. Depending on the spouses’ individual circumstances, equalization can produce an unfair result.
Couples can agree to divide their property another way. When couples negotiate an alternative method before they marry, the resulting marriage contract is usually referred to as a prenuptial agreement or prenup.
Courts enforce written prenups signed by both parties if the agreement meets certain conditions. Both parties must make complete and accurate financial disclosures before signing, and each must have ample opportunity to consult with independent legal counsel to ensure that they understand their rights. Our Ottawa high-net-worth divorce lawyers could help draft a prenuptial agreement or review one that is already written and propose revisions if necessary.
Wealthy couples typically use marriage contracts, including prenups, to decide on a method of disentangling their finances if the marriage ends. You can exclude a spouse from an interest in designated property, which can be of critical importance for business owners and people with property, such as a cottage or ski chalet that has been in the family for years. The couple can also agree to assign specific debts to one spouse or share debt one spouse brings to the marriage.
The prenup can address spousal support, and a couple can agree to waive it. However, a spouse may be granted ongoing support despite waiving it in a prenup if their age, health, employability, or other circumstances render them unable to maintain their lifestyle without it. Our high-income divorce lawyers could explain how judges in Ottawa determine whether to enforce a spousal support waiver in a prenup.
The Ontario Family Law Act s.52 does not allow a prenuptial agreement to govern parenting time or decision-making responsibilities—these matters must be decided at the time of separation, based on the children’s best interests. The law also bars a prenuptial agreement from limiting either spouse’s rights in the matrimonial homes.
Prenups are typically one-sided to some degree, and the less favored spouse may choose to challenge it at the time of separation. A court might overturn part or all of the agreement if the legal requirements were not observed when the agreement was signed.
A prenup must be fair at the time of separation. Even if all the formalities were observed and the prenup was reasonable when the parties signed it, a court can set it aside if changes of circumstances have rendered it unfair. Our Ottawa high-asset divorce lawyers could defend or challenge a prenup in court if necessary to obtain a fair result.
When substantial assets are involved, it is a good idea for a couple to sign a prenuptial marriage contract. Doing so requires full disclosure of each party’s holdings and debts and fosters candid discussion about financial expectations during the marriage.
The lawyers at the Riley Divorce & Family Law Firm have extensive experience negotiating, challenging, and defending prenuptial agreements for Ottawa high-net-worth divorces. Contact us for help with issues concerning your marriage contract.
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