Prenuptials & Marriage Agreements in Duncan, BC

It used to be quite rare for couples to create prenuptial agreements in Duncan.

They were mainly drafted by high-net-worth individuals – often before they entered a second or subsequent marriage, in order to protect the assets that they had brought to the marriage or to protect children from a previous marriage.

However, in recent years, we have seen a greater demand for prenuptial agreements, perhaps as people get married later in life having already accumulated considerable assets.

Jennings Family Law in Duncan can help you and your intended partner draft your marriage agreement so that it is legally enforceable.

What are prenuptial agreements for in Duncan?

Prenuptial agreements, commonly known as “prenups,” serve an essential role in British Columbia family law. They provide a legally binding contract between couples who intend to get married, enabling them to make provisions in the event of a relationship breakdown. Understanding the purpose and benefits of prenuptial agreements is crucial for individuals seeking to protect their rights and assets.

Key points to include:

Definition and Purpose: Prenuptial agreements are contracts entered into by couples before marriage to establish their rights and obligations in the event of separation, divorce, or death. Their primary purpose is to outline how assets, debts, property, and spousal support will be divided, ensuring clarity and fairness.
Protection of Assets: Prenups can safeguard individual assets acquired before marriage, inheritances, family businesses, or investments, allowing couples to maintain ownership and control over their respective properties.
Clarity and Certainty: By clearly detailing the rights and obligations of both parties, prenuptial agreements provide clarity and certainty in financial matters. This can help minimize disputes and potential conflicts during the dissolution of a marriage.
Financial Planning: Prenups allow couples to plan for their financial future by addressing financial responsibilities, debt distribution, and potential spousal support arrangements. They provide a proactive approach to managing finances and protecting each party’s interests.
Customization: Prenuptial agreements can be customized to fit the unique circumstances and needs of each couple. They offer flexibility in determining the division of assets and addressing specific concerns, tailoring the agreement to meet individual requirements.
Legal Considerations: It is important to consult with a qualified family law lawyer to ensure that prenuptial agreements comply with British Columbia’s legal requirements. Working with a lawyer can help ensure that the agreement is enforceable and meets the needs and expectations of both parties.

What are the benefits of a prenuptial agreement?

For many couples, it is preferable to decide on the terms of separation such as division of assets and spousal support payments when it is merely a hypothetical situation.

When the relationship is healthy, decision-making faculties are unclouded by the emotion that generally results from a relationship breakdown.

Prenuptial agreements also maintain personal privacy in the event of separation or divorce.

Benefits of a Prenuptial Agreement in BC:

Asset Protection: Prenups safeguard individual assets acquired before marriage, protecting them from being subject to division during a relationship breakdown.
Property Division: Prenuptial agreements allow couples to determine how property acquired during the marriage will be divided, providing clarity and avoiding potential disputes.
Debt Allocation: Prenups can address the allocation of debts acquired before and during the marriage, protecting each party from assuming responsibility for the other’s debts.
Financial Planning: Prenuptial agreements enable couples to plan their financial future by outlining financial responsibilities, addressing potential spousal support, and establishing a framework for financial decision-making.
Protection of Family Businesses or Inheritances: Prenups can ensure that family businesses or inheritances remain within the family and are not subject to division in the event of a divorce.
Clarity and Fairness: By clearly stating the rights and obligations of each party, prenuptial agreements provide clarity and promote fairness, reducing ambiguity and potential conflicts.
Preservation of Separate Property: Prenups can help individuals maintain ownership and control over their separate property, ensuring that it is not considered marital property subject to division.
Efficient Dispute Resolution: In the unfortunate event of a relationship breakdown, having a prenuptial agreement in place can facilitate a smoother and more efficient resolution of financial matters.
Protecting Personal Privacy: Prenups can help keep sensitive financial information private, as the terms of the agreement are typically confidential and not disclosed to the public during divorce proceedings.
Flexibility and Customization: Prenuptial agreements can be tailored to the specific needs and circumstances of the couple, allowing for flexibility in addressing unique concerns and ensuring the agreement reflects their intentions.
Ensuring Spousal Support Clarity: Prenups can outline the terms and conditions of spousal support, providing predictability and avoiding potential disputes in the future.

Who should have a prenuptial agreement?

In BC, the following individuals may benefit from having a prenuptial agreement:

Individuals with Assets: Those who have significant assets, including properties, investments, or businesses, may want to protect their pre-marital assets or define how these assets will be divided in the event of a relationship breakdown.
Business Owners: Entrepreneurs or individuals who own businesses may want to safeguard their business interests and establish guidelines for ownership, control, and division of business assets in case of divorce.
Individuals with Inheritances: Those who anticipate receiving inheritances or family wealth may want to ensure that these assets remain separate and not subject to division in the event of a marital dissolution.
Professionals with Licenses or Practices: Professionals such as doctors, lawyers, or accountants who have established practices or licenses may want to protect their professional assets or define the impact of a divorce on their practice.
High-Income Earners: Individuals with high-income levels may want to establish guidelines for spousal support or the division of income and assets accumulated during the marriage.
Individuals with Children from a Previous Relationship: Those who have children from a previous relationship may want to protect the inheritance rights or financial well-being of their children by defining how assets will be allocated in case of a divorce or death.
Those with Disparate Financial Situations: Couples with significant disparities in their financial situations may choose to address financial imbalances through a prenuptial agreement, ensuring fairness and addressing potential future conflicts.
Individuals with Specific Financial Concerns: Individuals who have specific financial concerns, such as debt obligations, existing legal obligations, or unique financial arrangements, may benefit from addressing these concerns in a prenuptial agreement.

It is important to note that consulting with a qualified family law lawyer is essential to ensure that a prenuptial agreement complies with the legal requirements of British Columbia and meets the specific needs and circumstances of the individuals involved.

What goes into a British Columbia prenuptial agreement?

The prenuptial agreement lawyers at Jennings Family Law will guide you about what to include in your agreement.

In general, couples include the following terms to cover finances:

The division of assets that each person brought into the marriage
Any specific items of property that are excluded from division
The division of any outstanding debts
The division of joint assets
Who gets the home?
Who pays for what during the relationship?

Provisions may also be made for the following:

The amount of spousal support payable in the event of separation/divorce
The role of step-parents in the marriage
The amount of child support payable to children from previous relationships
Child custody and access arrangements for children from previous relationships
Making educational/moral decisions for your children
Other rights and obligations

Note that child custody decisions for children from the present marriage cannot be provided for in advance in a prenuptial agreement.

This will need to be decided in the best interests of the children in the event of a future marriage breakdown.

What are the other types of marriage agreements in BC?

Prenuptial agreements are the main type of agreement drafted between two intended spouses. However, there are other types of agreements that can be drawn up for two people entering or already in a formal relationship.

These include:

Postnuptial agreements

Postnuptials may cover all of the same terms as a prenuptial agreement but they are created AFTER a couple is already married.

They are far less common than prenups and some married couples are surprised that this option actually exists for them.

Cohabitation agreements

Prenuptial agreements are only available for couples intending to marry. For couples looking for a similar type of agreement but who intend to cohabit or have a common-law relationship, a cohabitation agreement can be drawn up.

Separation/division of property agreements

Separation or division of property agreements are created after the breakdown of a marriage or common-law relationship. They set out how assets and debts are divided and, for many couples, they are the precursor for a divorce agreement.