| Do Pre-nupt agreements stand up in Ontario or Canadian courts?
Posted: 3/9/2008 9:23:30 PM | Friends of mine have a 27 year old daughter who just got married recently. My friends bought the house she and now (her new husband) are living in. Before she married they approached a lawyer to ask about a pre-nupt agreement so that if something happens he doesn't get half of the house.
They said that the lawyer told them that "the pre-nuptual agreement is not worth the paper it's written on" as judges usually go with Ontario law or Canadian law on Separation and divorce in which the spouse gets 50% of the assets.
I asked my friends how can this be when the two people going into the pre-nuptual agreement both sign the papers. They didn't know why, but that's what the lawyer told them.
One female American speaker on financial planning recommends that couples get pre-nuptual agreements for protection of assets. I wonder if Pre-nupts stand up better in American courts?
Does anyone know of anyone who's had a pre-nuptual agreement that did stand up in an Ontario or other Canadian court or did the judge award 50% to the other spouse as per normal divorce law?
If I ever got married I would like to have a pre-nuptual agreement as I have worked hard for everything I have (which is moderate - not high end - including the house) but now I don't know if it would be worth the paper it's written on.
Any comments on this or first hand knowledge?
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| Do Pre-nupt agreements stand up in Ontario or Canadian courts?
Posted: 3/9/2008 9:53:55 PM | Prenuptial agreements can be beneficial but they are not carved in stone. They are usually written at the beginning of a marriage, and as we all know circumstances change...i.e. children are borne, wife oe husband quits job to stay home with them.
The courts will look at all the circumstances of a marriage and take the prenuptial agreement into consideration.
Here's a couple of cases that went to the Supreme Court and are intersting reads.
http://scc.lexum.umontreal.ca/scc-eliisa/search?language=en&documentScope=judgment&all=Prenuptial+Agreements&phrase=&any=&without=&title=&citation=&party=&judge=&subject=&exactDate=&dateFrom=&dateTo= | |
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| Do Pre-nupt agreements stand up in Ontario or Canadian courts?
Posted: 3/10/2008 5:18:54 AM | You cannot sign an agreement which violates Provincial or Federal law.
(ie, you cannot agree to be beat up, or robbed, or forgo your rights to marital assets)
This is true, except that voluntarily forgoing your rights to marital assets does not violate any law. (the other examples given are nonsense too, but for other reasons )
The principal (in Ontario anyway) for splitting of assets is called "Equalization" which basically means you each take your net worth at the beginning of the marriage, then, again, at the determined date of separation. Subtract one from the other and split the difference. Very simple when both partners contribute equally (so , no alimony) and there are no children to support.
In your daughter's case (assuming the house is paid for) with everything else being equal, the VALUE of the house (if not the house itself) would be hers and only the appreciation of the value of the house would have to be split. Of course, it's not always that simple, especially if he contributes to the mortgage.
Also, in Ontario, gifts and inheritances to one person are not considered marital assets and are excluded from equalization. Though the appreciation would still be split. | |
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| Do Pre-nupt agreements stand up in Ontario or Canadian courts?
Posted: 3/10/2008 8:40:24 PM | I understood that any gifts/inheritances to one person are never considered marital assets - not even any appreciation - unless the person "gifted" chose to use the gift/inheritance for something matrimonial, i.e. matrimonial home, etc.
If your friends purchased the house, hopefully they would have kept the house in their name and rented it to the daughter/spouse....giving them protection in case of divorce and still provide a roof for the daughter in that scenario as well. | |
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| Do Pre-nupt agreements stand up in Ontario or Canadian courts?
Posted: 5/12/2008 8:45:05 PM | | "The principal (in Ontario anyway) for splitting of assets is called "Equalization" , this is applied to income and assets at the END of the marriage. Also, since January 2002, spousal and child support can be revisited at any time by either party for revision as long as you can afford your lawyer. | |
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| Do Pre-nupt agreements stand up in Ontario or Canadian courts?
Posted: 5/12/2008 9:21:15 PM | Well to be sure always get your information directly from the ontario courts . And you can email almost any court in canada and get any information you may need sbout prenups and what they are according to a split up .
As for gifts or inheritances well I would also make sure you check from a relyable sorce also ontatio courts. As if your married at the time when you recieve gifts or an inheritance it may become apart of any split up also.
And if I am not mistaken if a prenup is done propperly with lawyers then it is legal and binding in any court in canada. But like I said it needs lawyers involved if setting up a binding prenup.
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