Protecting Interests Through Legal Agreements

Couple reviewing legal documents together
0

Years of Experience

Building a Strong Foundation Together

Planning for the Future Together

If you are a couple contemplating marriage or moving in together, a domestic contract that sets out the financial arrangements between you during the relationship and at the time of separation is always in your best interests.

Defining Rights and Responsibilities

A domestic contract can outline the rights and responsibilities of each person during the relationship and in the event of a breakdown. Cohabitation agreements are designed for couples living together without getting married and should be updated in the event of marriage.

Protecting What Matters Most

A domestic contract, often called a prenup, can be used to protect property you own at the start of the relationship, inheritances or family gifts received during the relationship, and business interests. Some agreements may also address expectations around support in the event of a relationship breakdown, although there are limits to the types of support waivers that may be binding in the future.

A Thoughtful and Thorough Process

Entering into a prenuptial agreement requires full financial disclosure of your income, assets, and debts, careful consideration of both parties' intentions, and a well-drafted agreement that aligns with your financial and estate plans. Berry Family Law will guide you step by step through the process of negotiating and entering into a domestic contract that protects your future and strengthens your relationship.

Frequently Asked Questions

Domestic Contracts

Do I need a prenup or cohabitation agreement?

A prenuptial or cohabitation agreement is not required, but it can help both partners understand their financial rights and responsibilities if the relationship ends.

These agreements are especially useful where one or both partners:
• own property;
• have significant assets or debts;
• own a business;
• expect an inheritance; or
• have children from a previous relationship.

 

What can we include in a marriage contract?

A marriage contract can set out how spouses will divide property, handle debts, address spousal support, and manage specific assets during the marriage. It cannot decide parenting arrangements or limit a child’s right to support.

Can we change an agreement after it’s signed?

Yes. A domestic contract can be changed or replaced at any time, as long as both parties agree.

To help make the updated agreement enforceable, it should be:
• in writing;
• signed by both parties;
• witnessed; and
• supported by full financial disclosure.

 

Do both partners need independent legal advice?

Independent legal advice is not always legally required, but it is highly recommended. Each partner should have their own lawyer review the agreement to ensure they understand their rights and reduce the risk of future challenges.

Common Law Planning

Should we get a cohabitation agreement?

A cohabitation agreement is not required, but it can be a very useful planning tool for couples who live together outside of marriage. It allows partners to set out expectations in advance about property, finances, debts, and support, and can help reduce uncertainty or disputes if the relationship ends.

Whether a cohabitation agreement is appropriate depends on your circumstances, including whether either partner owns property, has significant assets or debts, earns a different income, or wants clarity about financial responsibilities. A lawyer can help you determine what protections may be appropriate.

Can a cohabitation agreement protect the home or other assets?

Yes. A cohabitation agreement can set out how property will be owned, managed, and divided if the relationship ends. This may include a home, savings, investments, debts, business interests, or other assets.

This can be particularly important where one partner owned property before the relationship, where only one partner is on title, or where the partners make unequal financial or non-financial contributions over time.

A cohabitation agreement can address financial issues, but future parenting arrangements cannot be finally determined in advance. Parenting issues are always assessed based on the best interests of the child at the relevant time.

Can we convert our cohabitation agreement into a marriage contract if we get married later?

Yes. In Ontario, if parties enter into a valid cohabitation agreement and later marry, the agreement is generally deemed to be a marriage contract unless the agreement provides otherwise.

Even so, many couples choose to review or update their agreement before marriage to ensure it still reflects their current circumstances, intentions, and legal status.