Prenuptial agreement Canada is a hot topic that is gaining popularity among couples nowadays. It is a written agreement that needs to be signed by engaged couples before they are officially married.
Generally, the allocation of the property and other financial assets are discussed after the marriage or while getting a divorce. But with a prenuptial agreement, one can distribute and talked about what to give or not before marriage. Here, both the partners talked about this matter thoroughly and then made a mutual agreement with their consent.
When this agreement first came to light, it was thought to be reserved for rich people only. But in reality, any couples who want can go for a prenup. It doesn’t matter how much rich or wealth you have. Nowadays, many online prenuptial agreements in Canada are available from which one can take help for drafting their contracts.
Take time and go through this article to know about a prenuptial agreement, its cost, and other essential things you need to know for a prenup in Canada.
What is a Prenuptial Agreement Canada?
A prenup is a legal contract that couples need to sign before their marriage. This agreement is also commonly known as an antenuptial agreement, premarital agreement, or prenup.
It basically contains various clauses and terms as set by the pairs, such as:
- Information about both couples.
- Individual assets and debts.
- Shared belongings and debts.
- Spousal funding and maintenance.
- Lands legacy (if any)
All these will become valid and must be given and divided according to the prenup if their marriage doesn’t work out for any causes. This contract needs to be submitted to the court before the marriage takes place. Otherwise, it will fall under the marriage contract.
A prenuptial agreement comes in handy as in case marriage doesn’t work out, they don’t have to fight for anything after the marriage. As they have cleared all things before the wedding, there remains no confusion later on, and thus, based on the prenup, the couple can act accordingly.
How does a Prenuptial Agreement Affect a Will in Canada?
A prenuptial agreement reserves all the right to affect a will in Canada. This clash mainly occurs when a person dies, making a will that breaks some prenuptial agreement clauses. When the terms and conditions of a prenup get in the clash with a will, the court checks the prenup’s clauses very carefully.
However, in most cases, the prenup is often given more importance than the will. But, the last final decision lies in the courts’ hand, and anyone can win.
The contract should contain the law clearly so that the reader can use it to understand. If a prenup doesn’t include this information and the spouse dies in a different state that contains other laws, then the power will ultimately go to the state where that person has died.
There are 2 situations where will directly get more precedence over the prenuptial agreement:
- Many times Canada’s prenuptial agreement contains a section known as the “sunset clause.” This clause basically sets an expiration date for the prenup. If that date crosses, then will get supremacy over the prenup.
- Moreover, if the last will can show that the prenup is null and illegal, then the court will not put the prenup clauses into effect. This type of situation happened when the spouse made the contract under any pressure.
How to Make a Prenup Enforceable?
Several things can impact the enforceability of a prenup. Below is a list of vital elements that must be accurately done while drafting a prenup:
While drafting a prenuptial agreement, you must disclose all your earnings, properties, debts, and accountabilities and give details of their standard monetary values. Otherwise, the failure of revealing the exact information may impact the legitimacy of your prenup.
Consent With Related Status
Although the couples make the prenuptial agreements, they should still be made following the family law and the divorce act. If you don’t have a clear idea, then you must consult with an experienced lawyer to know how you can fulfill all the legal requirements.
Spent Enough Time
A prenup is made based on the mutual agreement of the couples getting married. Thus, it offers both parties ample time to get legal advice, financial disclosure, and evaluate the papers and contract before giving final signature.
In fact, the court sees the time spent while making these contracts, and in case if they find that it is made hurriedly, it will be directly labeled as an invalid one.
Avoid Any Influence And Pressure
Like all other legal contracts, a prenup can not be signed under any kind of pressure and intimidation. It means that both parties should sign liberally and willingly. Otherwise, it will be considered as a null agreement.
Get yourself an experienced lawyer
You must take legal help from a skilled lawyer while thinking about getting a prenup. As there are many legal things that you will not be familiar with.
Like, s/he can help you with the prenuptial agreement template and other legal things you need to consider. Moreover, s/he will always try to make things easy for you by familiarizing yourself with the prenup dos and don’ts. Lastly, you will always find your lawyer fighting in favor of you.
Things That Make a Prenuptial Agreement Invalid
There are tons of things that can make your prenuptial agreement invalid. That’s why you must know about these points so that you can avoid them for making your prenup enforceable, consisting of:
- The contract was made under pressure or intimidation.
- Illegal terms and conditions were added to the agreement.
- Clauses are exceedingly biased to one side.
- No liberated lawful counsel.
- All financial things are not disclosed (like properties and debts of both sides)
- Partial or incorrect information.
- Oral contracts.
- Making the contract after the marriage or the wedding date is too near to be fully understood.
Does a Prenuptial Agreement Contain Child Support or Child Custody?
Usually, a prenup does not cover child support or child custody. It is one of the complex matters left for the courts to decide during the divorce. However, if it contains then, the court always upholds the right to change and determine whether the child support is sufficient or not for the child.
At any moment, they have the power to change the amount of child support or make any decision that seems right for the child’s better life. If the prenup contains conditions that are in favor of the child and is enough for the child, then these provisions are expected to be enforced by the court.
Prenuptial Agreement Cost in Canada
The cost of a prenuptial agreement in Canada varies depending on where you live, the type of assets you want to protect, your lawyer, various family and financial complexity ( business investment, insurance), and the time it takes to negotiate to reach the final decision.
However, a prenup cost generally ranges from 499 dollars to 2000 dollars, including HST (harmonized sales tax). On the other hand, litigation costs may vary from 10,000 dollars to 90,000 dollars, including HST (harmonized sales tax).
The Bottom Line
Hopefully, you will have no more problems regarding the prenuptial agreement Canada. A prenup is not for rich pairs only but for any pairs who want to protect their share of assets.
It is totally understandable as through the prenuptial agreement; you get the chance to protect your properties. Furthermore, there remains no scope for future disputes regarding any financial things if somehow the marriage breaks as you both have agreed on it and then have signed.
A prenup is a thoughtful process, and there is no turning back after signing it. Therefore, take time and make the right decision for you and your upcoming partner as it may affect you in the future.