Prenuptial Agreement Lawyer Toronto
We help clients protect their net worth in divorce
with Prenup agreements.
What is Prenup Agreement?A Prenup helps to protect assets (and even debts) in the event of divorce or death. You can identify certain assets – such as properties, investments accounts, pensions, RRSPs, that will not be included in the division of property if you divorce. Not only do you exclude the value of these assets now but any growth in the assets over the course of the relationship. You can also protect family inheritances. A reasonable Prenup provides clarity to the couple so they know exactly what happens to their property in the event of divorce. They are saved from the anxiety of the unknown, in the event of breakup. If a couple does not have a Prenup, property is divided as the law is at the time of breakup. Most people assume that property is divided equally but that is not necessarily the case. Most people don’t understand how property division works and they are shocked to learn how unfair it can be. A Prenup can fix this unfairness, and it’s advised to have a prenup lawyer Toronto to help you with this
What Should Be Included in a Prenup?
A prenup doesn’t have to be confusing, rather fair and reasonable. Below you will find the answer to the ‘what is reasonable prenup’ question and what is recommended to include in Prenup Toronto.
- Any property that you own and do not want to be divided on break up. Property means homes, investment accounts, bank accounts, RRSPs, pensions, stocks, stock options, cryptocurrency, business interests or collections such as art.
- Debts – if you or your spouse have significant debt it can be excluded from equalization. You can also put in provisions if one person pays off the other person’s debt to have the amount credited.
- If you have children from a prior relationship, you may want to protect your children’s interests in the event that the parent passes on. Parents may want to leave separate property to their children.
- Some couples also address spousal support in a Prenup. If support will be paid, how much will be paid and for what time period.
- The couple is free to include for the most part, whatever they would like in the Prenup. It just needs to be a fair agreement at the end of the day.
What Should Not be Included in a Prenup?
- Anything related to the kids. You cannot include in a Prenup anything about parenting decision making or parenting time. You cannot negotiate child support – either waive it or dictate how much support should be paid. The law will apply.
- A provision kicking your spouse out of the family home. Married people have an equal right to live in the home – regardless of who is on title.
- Cheating clauses. Sometimes a couple will want a penalty clause for cheating in the Prenup. These clauses will not be enforced by a judge.
- Terms that may incentivize divorce. Courts do not want to encourage divorce.
- Terms that are unconscionable or so unfair and one sided, that no reasonable person would sign the agreement.
Do I Need a Lawyer for a Prenup?
Can you write your own prenuptial agreement? Yes, legally you do not need a lawyer for a Prenup, but you run a high risk that the agreement will be overturned if you did not have an opportunity to obtain legal advice.
If the Prenup doesn’t comply with the law, it will not be valid. Having a prenuptial agreement Lawyer Toronto ensure your “I’s” are dotted is worth a lot to ensuring the agreement will hold up.
Investing in legal fees up front, can be worth it in the long run because you ensure your assets and net worth are properly protected. Imagine how it would feel to think you have a proper Prenup in place only to learn it is set aside on a technicality.
The decision to enter into a prenuptial agreement is very personal and requires buy in for both parties in a relationship.
Reasons a Prenuptial Agreement Might be Invalid
Prenups have to be properly drafted in order to be valid to avoid the stress and expense of fighting over money in a break up.
Prenuptial Agreement Benefits and Drawbacks
There are many benefits to signing a prenuptial agreement, especially if you and your partner have significant assets.
Can Your Prenuptial Agreement Be Modified after Your Marriage?
A prenumptial agreement may be modified after you’re married depending on the local law and the specific terms of your agreement.