Why You may Need a Marriage Contract
Many people have an instinctively negative reaction when they hear that someone either has or is considering entering into a marriage contract.
“What about love?” “Don’t you trust the other person?” “It kills romance!”
The Hollywood-perpetuated image is one of a rich man marrying a much younger woman, with no money of her own, and protecting himself. That still happens from time to time but not as often as you may think.
The reality is much more practical.
For example, marriage contracts are, and should be, common among spouses who marry for a second time, and who bring a home with them into the marriage. Specific equalization (property and debt division) rules in Ontario’s Family Law Act speak to how a matrimonial home is to be treated on separation. The Act also treats homes brought into the marriage in a unique way and for some spouses, those rules come as a shock when separation happens.
By way of another example, many people use inheritances received during the marriage to renovate a matrimonial home or to pay down the mortgage. Again., when the marriage ends, they are disappointed to find out that they may not benefit from having received their inheritance when the equalization calculations are made.
Bottom line:
marriage contracts are not always a “bad thing”
a marriage contract can address/by-pass various provisions in the law, to ensure that if the marriage ends, you are not disadvantaged and’
to understand whether YOU need a marriage contract, you need legal advice to see if you and your assets are vulnerable in the event of a separation.
Do not wait until AFTER there is a problem , as it may be impossible to fix then. Get legal advice on the potential application of the Family Law Act to your specific circumstances NOW.
©AJJakubowska