Prenuptial Agreement: What is it and Do You Need One?

A prenuptial agreement is a contract made between two people before their marriage. This contract sets forth the terms of property ownership and briefs on what will happen to that property if the marriage is dissolved or if one party dies before the other. Either party can trigger the prenup, or it may be mutually agreed upon. In addition, many places require spousal support in those provinces where support would be awarded without a prenup.

For your prenuptial agreement to be enforceable, it must meet certain requirements under the law. The following points will give you a general overview as to why you should have a prenuptial agreement.

To Avoid Property Ownership Problems in Case of Divorce or Death

If the property is not divided or distributed properly at the time of divorce or death, one or both parties may be required to repay community property that they have received from the other party.

 

Children from a previous relationship who were adopted by your new spouse may be entitled to part of their estate upon death under laws that require parental rights for a child to receive an inheritance. On the other hand, if a spouse has little property or children from a previous marriage, they may be eligible for substantial spousal support.

To Provide Security in the Event of Death

A prenuptial agreement can state that certain property items will be passed on to one's children or other heirs. Some couples in second marriages want to ensure their assets will go to their children from a previous marriage or partnership and not to the new spouse's children.

To Deal with Issues Specific to the Marriage

The term prenup also refers to a law that outlines what will happen if one partner dies before the other. To provide security for a surviving spouse, many states require that any assets passing under a will made before marriage be given to the surviving spouse to preserve their ability to live on those assets. Also, if the decedent had made provisions during their lifetime as to what would happen in case of death, they would become enforceable.

 

To Protect Against Unreasonable Divorce Proceedings

Some people don't want to be at the mercy of a spouse who wants to dissolve their marriage for reasons that are not justifiable, such as abusive behavior or other "unreasonable" reasons. For this reason, some people want to protect themselves against particularly drastic divorces through prenuptial agreements.

 

If you're looking to draft a prenuptial agreement, Nanda and Associate Lawyers can help you. They’re Mississauga-based Canada family lawyers who can help you with family law in Canada. They also offer startup visa services and help you obtain spouse open work permits, as well as other immigration and sponsorship requirements.

 

Contact them right away for a free consultation!