Prenup Lesson

Planning the demise of your marriage that has yet to take place isn’t what dreams are made of, isn’t it? However, a thoughtful consideration should take place regarding a Prenuptial Agreement prior to marriage as unromantic that sounds.

What is a Prenuptial Agreement? (Prenup)

According to the Province of Ontario, a Prenup is a domestic contract that spouses create before getting legally married.

You cannot create a Prenup after getting married.

This document sets out each partner’s financial responsibilities when they separate.

Basically, a Prenup protects assets acquired prior to the marriage taking place. If you are discussing the Prenup ins and outs, you may feel uncomfortable because it may come across plans are being make for a separation, not your upcoming marriage. Discussing a Prenup will force you to talk about financial matters and there’s nothing with that.  It’s important to discuss finances before marriage or entering a common-law relationship.  A prenup deals with financial matters not issues like child custody. 

Are there circumstances that make a Prenup more necessary?

1. One or both partners have been married.
2. One or both of the parties are entering the marriage with children.
3. One of the partners is very wealthy.
4. One of the parties as a lot debt.
5. One or both of the partners are business owners.

These are the most common reasons for a Prenup to be drafted and signed. Remember, a Prenup protects both of you, so there’s no reason for it to be one-sided. With that in mind, it’s a good idea for each of you to have your own lawyer to go over the agreement.  You will want to make sure that everything is fair to both parties, especially if children are involved. Your financial affairs will be protected and should a separation take place, any discussions regarding the division of assets will be minimal and you can take more time to deal with other issues such as the children. A Prenup will protect the assets you acquired before the marriage, like an inheritance. When you are having discussion about setting up a Prenup, be honest and open about all matters relating to your financial situation. The discussion needs to be frank because assets and liabilities will need to be dealt in the case of a marriage breakdown. It may seem that dealing with a prenup isn’t romantic when planning a future with your partner, but in cases like the ones listed above, a prenup is quite necessary. Once you are married, you can revisit the Prenup and have it amended either amicably or through court. Circumstances can change, so it may a good idea to have a look at the Prenuptial Agreement periodically.

There are online DIY Prenup Forms that you can use but they would be good to use as a starting point in discussing a Prenuptial Agreement, but in actuality, you should both consult with a knowledgeable Family Law firm the staff at Burlington’s Grant Lee Law when putting together your legal Prenup. Grant Lee Law will make sure your Prenup is ready for use should your marriage come to an unfortunate end. Let Grant Lee Law in Burlington help you! Call (905) 315-6837.