Marriage Contracts

Marriage contracts are also known colloquially as pre-nuptial agreements or prenups. Marriage contracts in Ontario are often negotiated before marriage, but they can be updated after the marriage has taken place. If circumstances change at any time during your marriage, it may be a good idea to review any existing marriage contract to consider whether the terms should be updated.

Marriage contracts are domestic contracts that can be customized to suit the parties’ needs to ensure that the rights, responsibilities and obligations of each party are protected to the greatest extent possible, in the event of a breakdown of the marriage in the future.

At Holam Law PC, we strive to work with our clients to craft marriage contracts that are best suited to their financial needs. Your agreement can be tailored to address your specific needs, such as spousal support or property division in the event of separation. This ensures that each spouse’s expectations of the other are clearly stated from the outset.

Having a binding and enforceable marriage contract is akin to having vehicle insurance. Just like car insurance may protect you in the event of an accident, a marriage contract may protect or limit your financial risk or liability upon separation. This is because a marriage contract generally sets out each party’s rights and obligations, such as how assets are to be divided in the event of a breakdown of your marriage.

Moreover, a well crafted marriage contract is more likely to be held up by an Ontario Court if challenged by a spouse. Separation is difficult enough, so setting up the process in advance to manage the financial aspects can significantly reduce stress during an already emotional time.

That’s why it is so important that marriage contracts be negotiated with the assistance of a family lawyer. The team at Holam Law PC has the necessary experience and knowledge to negotiate an agreement that protects your interests.

Terms that can be included in a marriage contract are as follows:

• Limitations on and/or waivers of spousal support

• Exclusion of assets from the division of net family property, i.e. equalization

• How assets will be divided if there is a breakdown of the marriage, i.e. separation

• How finances will be managed during the marriage or after separation

• Protection of any substantial gifts, inheritances or trusts

While marriage contracts can protect financial considerations, they cannot include any terms in relation to parenting.

Further, a marriage contract cannot limit the rights of a spouse to how they live in the matrimonial home.

Cohabitation agreements in Ontario are domestic contracts similar to that of a marriage contract. Common-law spouses who are not contemplating marriage but who wish to reside together or are already residing together may wish to enter into an agreement.

To see if a cohabitation agreement is appropriate for your situation, visit our Cohabitation Agreements page.

Our family lawyers have extensive experience working with clients to negotiate and craft marriage contracts best suited to their needs. We customize contracts based on our client’s wishes and requirements.

We will help determine your needs, compile your financial disclosure documents in accordance with legal requirements, negotiate the terms of your marriage contract, and draft the document once the terms are agreed upon.

If you are in the process discussing with your future spouse a marriage contract or are considering one, now would be a great time to contact us. When it comes to ensuring the strength of your marriage contract, there is no substitute for a professional legal consultation.

Creating a legally binding marriage contract will require both parties (spouses) to be honest and open about their financial circumstances. Detailed disclosure of all assets, as well as debts and liabilities, are required to be made under Ontario family law and legislation. The process by which full financial disclosure is made can be complicated. However, our team at Holam Law PC is well-equipped with the knowledge and technical skill to assist with this process.

In addition to the provision of full financial disclosure, another hallmark of a legally binding and enforceable marriage contract is independent legal advice. This ensures that you understand your own rights and obligations under the agreement, so that you can enter it voluntarily and fully informed. It is important for you and your spouse to choose your own individual lawyers who will advocate for you alone to achieve the intended results. This will also help to create a more balanced marriage contract.

The marriage contract must be in writing and duly signed by both parties in the presence of credible witnesses.

Generally, when the hallmarks of a binding and enforceable marriage contract have been met, the Ontario courts will uphold the contract. It is for these same reasons that a one-sided marriage contract should be avoided. Marriage contracts with unreasonable terms, or in which a party did not feel fully informed prior to entering into it, can lead to resentment.

A one-sided marriage contract will likely result in a spouse challenging in court the terms of the agreement following a breakdown of the marriage, escalating the dispute significantly. Marriage contracts lacking the hallmarks noted above are unlikely to be upheld in an Ontario court.