Why Enter into a Marriage Contract?

Marriage contracts can be particularly useful for individuals who are embarking on a second marriage, have children from an earlier relationship, or who will be bringing significantly more assets to the marriage than the other. 

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A marriage contract defines the parties' expectations from the outset, and allows individuals to set their own rules and conditions should they decide to part ways. These agreements can: 

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• Define marital property and provide for its distribution; 

• Protect specific assets like businesses and properties;

• State who is responsible for repaying debts accumulated before the marriage;

• Provide for or waive spousal support;

• Preserve retirement funds;

• Define ownership of special items.

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Parties may not deal with issues related to children's custody and access and may not change the equal right of each party to remain in the matrimonial home after they separate, regardless of whose name is on title, in either marriage contracts or cohabitation agreements.  

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If spouses separate and divorce without a marriage contract, the division of their assets is determined by the Family Law Act. 

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While the process of preparing a marriage contract can be daunting, addressing how assets will be divided, and making arrangements for financial support should your marriage end provides a level of certainty, regardless of what happens down the road.

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It may be valuable to have conversations about the future and who will get what with your spouse in the event of a separation or divorce. More often than not, the divorce proceedings turn sideways as the parties cannot agree on the division of assets. It can also lead to lengthy and contentious legal battles, which can be very costly and can have a negative impact on the emotional and mental health of the parties involved, especially the children. Having a marriage contract drawn up by an experienced family lawyer can help you attain peace of mind and make the separation process smoother.

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Financial Disclosure

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Prior to entering into a marriage contract, it is essential that the parties know what each is bringing into the marriage. A court may override or set aside the provisions in a marriage contract if a party failed to disclose to the other significant assets, debts or other liabilities, existing when the marriage contract was made. 

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The law surrounding marriage contracts can be difficult to grasp, which is why it is advisable to consult a family lawyer specializing in divorce and separation before preparing and/or signing a marriage contract to ensure that the contract will be upheld should it be the subject of any future challenge. 

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