Marriage Contracts in Ontario: 3 key points to consider

Talking about finances before or during marriage may feel awkward, but setting expectations early can prevent future misunderstandings. In Ontario, a marriage contract, whether signed before (prenuptial) or after (postnuptial) tying the knot, can give couples peace of mind by clearly outlining financial responsibilities and rights.

What Is a Marriage Contract?

A marriage contract is a legally binding agreement between spouses that defines how property, debts, and support will be handled during the marriage or in the event of separation, divorce, or death. These contracts are customizable and can reflect each couple’s unique financial goals.

3 Key points

• Can be signed before marriage (prenuptial agreement) or after marriage (postnuptial agreement).
• Focuses on property division, spousal support, and financial planning.
• Does not deal with child-related issues like custody or support.

What Makes a Marriage Contract Legally Valid?

To be enforceable under Ontario law, marriage contracts must meet several legal requirements. Skipping any of these steps can lead to the contract being overturned in court.

Requirements include:

• Written & Signed: Verbal agreements aren’t valid. The contract must be in writing, signed by both spouses, and witnessed.
• Full Financial Disclosure: Both parties must disclose significant assets and debts. Failing to do so can render the contract invalid.
• Independent Legal Advice: It’s strongly recommended that each partner receive legal counsel separately to ensure informed, voluntary consent.

What Can You Include in a Marriage Contract?

Marriage contracts can be tailored to reflect your relationship’s financial structure and long-term goals. They provide flexibility in areas where Ontario’s default family law rules may not fit your situation.

Common topics include:

• Division of Property: Clarify how property, including real estate, businesses, and investments, will be divided in case of separation.
• Spousal Support: You can define, limit, or waive support obligations, as long as it remains fair.
• Inheritance and Gifts: Outline how inheritances or family gifts will be treated during the marriage or after separation.

What Can’t Be Included in a Marriage Contract?

While couples have broad freedom in customizing their contract, some issues are strictly off-limits. These issues prohibited by law include:

• Waiving Child Support: A child’s legal right to financial support cannot be negotiated away.
• Parenting Arrangements: Courts always decide parenting time and decision-making based on the child’s best interests.
• Illegal or Unfair Terms: Any clause that’s illegal or goes against public policy may be struck down by a judge.

Why Consider a Marriage Contract?

Far from being pessimistic, a marriage contract is a proactive way to build trust and avoid future conflicts. It allows couples to create their own financial blueprint instead of relying on default laws. Benefits include:

• Clarity and Transparency: Know exactly where you stand financially.
• Reduced Conflict: Pre-agreed terms can avoid lengthy and emotional disputes later.
• Customization: Tailor financial responsibilities to your lifestyle and goals.

Can a Marriage Contract Be Set Aside?

The simple answer is yes. Even if signed properly, a marriage contract can be challenged and set aside by a court under specific circumstances. Common reasons include:

• Incomplete Disclosure: One partner hid major assets or debts.
• Coercion or Duress: One person was pressured or manipulated into signing.
• Unconscionability: The agreement is grossly unfair given the circumstances.

This is why legal advice and full honesty are crucial.

Final Thoughts

Whether you’re planning to marry or are already married, a marriage contract can be a smart step to protect your financial future. These agreements are especially helpful for couples with complex assets, previous marriages, or different income levels. Just make sure the contract is fair, well-drafted, and legally sound. You can reach out to us to discuss how a contract might fit your situation.

Want to know more? Watch our full video on how marriage contracts work in Ontario.