Marriage Contracts
Canadian Marriage Contracts
A marriage contract, whether executed before or after a wedding, serves as a personalized and confidential arrangement that outlines the division of a couple’s assets in the event of separation, divorce, or death. This contract’s functions often intersect with those of a Will, and it can also be likened to a cohabitation agreement.
The latter is designed for individuals either intending to live together or already doing so, with the purpose of establishing guidelines for potential separations. If the cohabiting couple eventually marries, the cohabitation agreement automatically transforms into a legally binding marriage contract.
It’s important to note that marriage contracts and cohabitation agreements can also encompass guidelines for the couple’s daily married life, not just their potential separation.
Across all Canadian provinces, marriage initiates an economic partnership that would entail asset division between spouses in case of separation or divorce, unless they opt for an alternate arrangement through a marriage contract. Such a contract enables couples to deviate from provincial property laws.
For a marriage contract to be legally valid, it must adhere to four fundamental rules:
- Be documented in writing.
- Be signed by both parties.
- Involve witnessed signatures.
- Incorporate full disclosure and honesty during negotiation leading to its signing.
The marriage contract is a legal document that empowers individuals to explicitly choose a matrimonial regime, often differing from the default regime. It can be established before or after marriage and necessitates both spouses’ signatures. This contract also permits donations and can include provisions for death scenarios. Furthermore, it’s modifiable, as long as both spouses are in agreement.
It’s worth clarifying that many individuals conflate a marriage certificate with a marriage contract, even though the purposes and uses of these two documents are distinct.
A marriage certificate is an official document providing evidence of marriage, which is obtained following the marriage celebration.
To assist heirs with estate liquidation, preparing a comprehensive list of documents and information is advised. Just as you might have pre-arranged a notarized will and funeral arrangements, having such a list can facilitate the process for your heirs.
Understanding Marriage and Cohabitation Agreements:
Marriage and cohabitation agreements are contractual commitments that stipulate the promises each party makes to the other. While these promises typically concern the outcome if the relationship ends, they can also address potential issues during the relationship. The primary objective is to preempt future conflicts.
A marriage agreement can be established between married spouses or those planning to marry, and it’s optional. Similarly, a cohabitation agreement can be made between individuals living together or planning to do so, and it’s also not mandatory.
These agreements are commonly employed at the outset of second relationships, particularly when there are children from prior unions. They are also prevalent when one party brings substantial financial assets or liabilities into the relationship.
If you’re considering a marriage or cohabitation agreement, you can begin by jotting down general expectations with your partner. Subsequently, you can formalize the agreement based on these notes or involve a lawyer to draft it.
Regardless of whether a lawyer is involved in drafting the agreement, seeking guidance from a family lawyer is crucial to comprehending your rights and responsibilities. Some lawyers offer unbundled legal services, focusing on specific aspects of your case, which can include reviewing an agreement draft and explaining its implications before signing.
