What is a Modern Marriage Contract? (“Prenup”)
Couples who are not yet married or who are already married can enter into a Marriage Contract. This is what people often refer to as a “Prenup Agreement”. A Marriage Contract is a very effective way for a couple to decide, (while they are in a good place and not dealing with the emotions of a break up), what will happen upon separation in terms of support and property division. A proper Marriage Contract is the best thing you can do to avoid litigation and spending thousands of dollars on legal fees on separation.
A valid Marriage Contract must be in writing and witnessed. The Contract, in order to be upheld by a Court, also need to be be fair. You will also need to exchange your net worth statements.
The Modern Marriage Contract can include terms to
- Divide property on separation.
- Protect any business interests which can include medical practices, partnerships and corporations.
- Determine if, how long and how much spousal support should be payable.
- Outline what happens after death. If you want your assets to go to your heirs and not your separated spouse, you can agreement to that in a marriage agreement.
- Exclude any inheritances you receive from being shared.
- Set out responsibility for debts.
- Prevent future court proceedings by agreeing that any court proceedings in conflict with the marriage contract must be dismissed and your spouse would have to pay for your legal costs if he/she tries to challenge the agreement.
We offer fixed fee package pricing for Marriage Contracts.
Contact us today at 416.862.0980 or admin@mlawgroup.ca to learn more.
What Are the Benefits of Marriage Contract in Toronto?
Marriage contracts, also known as prenuptial agreements, offer couples protection on several fronts in the event of a divorce. Among these benefits is that a marriage contract will allow you to maintain any assets you owned before marriage. This protection extends to any increase in property value during the marriage. Furthermore, creating the agreement will allow you to determine the division of marital property and debts in advance.
A prenuptial agreement can also protect you from any financial liabilities your spouse incurs, including:
- Pre-marriage debt
- Business debts
- Loans
- Other financial difficulties
Moreover, a marriage contract can allow you to modify any post-marital spousal support obligations or eliminate them altogether.
Finally, one of the more contentious issues between divorcing parties is that of alimony or maintenance payments. Drafting a marriage contract can allow you to formulate a framework in advance for approaching such decisions if the marriage breaks down. All of these issues contribute to the importance of a marriage contract.
How Much Does a Toronto Marriage Contract Cost?
If you are planning a wedding or putting money toward your future with your spouse in Ontario, you might wonder why you should take out additional costs by hiring a lawyer to create a marriage contract. Yet the cost of drafting a prenuptial agreement is generally insignificant compared to the expenses you will incur if you divorce without a marriage contract in place.
The cost of hiring a Toronto lawyer to draft your prenup depends on your circumstances. For example, the process will require more time and effort if you need your marriage contract to be valid in multiple jurisdictions. Consult with a member of our team if you would like to learn more about how we can create a tailor-made contract to meet your needs. Musson Law is committed to transparency in our relationships with clients.
Why You Need a Lawyer for a Marriage Contract
Many couples wonder whether it is possible to save money by writing a marriage contract themselves. Before you do so, consider the legal consequences. Marriage is a legal institution as much as an emotional commitment. As such, bringing a marriage to an end is subject to several legal restrictions. If you draft a marriage contract without the counsel of a qualified lawyer, you risk creating a document that is not legally valid.
Working with a Toronto lawyer to draft your prenuptial agreement will help ensure that it complies not only with your wishes but also with all statutory and common law requirements. While no lawyer can guarantee that a court will deem every aspect of your contract valid in the future, they will nonetheless be able to optimize the chances that the prenup will offer you the protections you have sought in its preparation. Therefore, each party should have their own lawyer who can explain the contract’s implications and any obligations they must fulfill.
For example, the lawyer for each spouse can also help their client understand that full financial disclosure is a vital aspect of drafting a marriage contract. Failure to be transparent about your assets can give a spouse grounds to challenge the agreement in the future. If a court determines that one side did not have the necessary information to sign the agreement in good faith, the marriage contract may be null and void.
Once a lawyer has drafted the document in collaboration with the other party’s legal team, they will submit the agreement to an independent legal professional for review. Finally, signing the document itself is a crucial moment in the process. Witnesses must be present for the document to be legal. Your lawyer can usually arrange for this finalization at their office.