Marriage Contracts in Ontario

Planning a wedding involves plenty of decisions, from the venue to the guest list. For many couples, it is also a natural time to talk about finances. A marriage contract, often called a prenup, is one way to make those conversations concrete. In Ontario, a marriage contract can be signed before or during marriage, and it can bring clarity and confidence to both spouses.

What is a marriage contract?

A marriage contract is a type of domestic contract under Ontario's Family Law Act. It allows spouses, or soon-to-be spouses, to agree in advance on how certain matters would be handled if they separate, including:

• how property and debts would be divided

• whether spousal support would be paid, and on what terms

• how specific assets, such as a family business, an inheritance or a cottage, would be treated

Without a marriage contract, the default rules in the Family Law Act apply when a marriage ends. These include the equalization of net family property. A marriage contract lets couples tailor those outcomes to their own circumstances.

Before or during marriage

Many people assume a marriage contract has to be signed before the wedding. In Ontario, that is not the case. Couples can enter into a marriage contract before or during their marriage. Some couples revisit their finances after a major life event, such as starting a business, receiving an inheritance or blending families.

If a couple living together signed a cohabitation agreement and later marries, that cohabitation agreement is generally treated as a marriage contract.

Who might consider one?

A marriage contract is not only for the wealthy. Couples often consider one when:

• one or both partners own a business or professional practice

• one partner expects a significant inheritance or family gift

• either partner has children from a previous relationship

• one partner is bringing considerably more assets or debts into the marriage

• the couple simply wants clarity and fewer uncertainties in the future

What a marriage contract cannot do

There are important limits under Ontario law:

• The matrimonial home. A marriage contract cannot limit a spouse's right to possession of the matrimonial home. Both spouses generally have an equal right to live in the matrimonial home, regardless of whose name is on title.

• Parenting arrangements. Decisions about parenting time and decision-making responsibility are based on the best interests of the child at the time of separation. Provisions made in advance can be set aside by a court if they are not in the child's best interests.

• Child support. Child support belongs to the child, and a court can disregard terms that are unreasonable under the Federal Child Support Guidelines.

Making it fair and enforceable

For a marriage contract to be valid in Ontario, it must be in writing, signed by both parties and witnessed. Beyond these basics, a few steps help protect the agreement:

1. Full financial disclosure. Each person should fully disclose their assets, debts, and income. Failing to disclose significant assets or debts can be grounds to set the contract aside.

2. Independent legal advice. Each spouse should have their own lawyer review the agreement and explain their rights.

3. No pressure. Allow plenty of time before the wedding so neither person feels rushed or pressured to sign.

4. Clear, understandable terms. Both spouses should understand what they are agreeing to and how it would work in practice.

Starting the conversation

Talking about a marriage contract does not mean planning for the relationship to end. For many couples, it is an opportunity to share their goals, values, and expectations openly, which can strengthen trust and planning as a couple.

How Forrest Law Practice can help

Our team in Oshawa helps couples across Durham Region understand their options and prepare clear, fair domestic contracts, including marriage contracts and cohabitation agreements.

Let's talk about your plans. Call Forrest Law Practice at (289) 295-3805 or visit https://forrestlawpractice.ca.

This article provides general information about Ontario law and is not legal advice. For advice about your situation, please speak with a lawyer.