Postnuptial Agreement in Canada: What You Need to Know
Upon getting married in Canada, couples typically enter into a marriage or prenuptial agreement to outline the legal terms of their union. However, sometimes couples realize after the wedding that they need to clarify certain aspects of their marriage. This is where a postnuptial agreement comes in.
A postnuptial agreement is a legal contract that is signed after the couple is married. It outlines the division of assets and debts in the event of divorce or separation. It can also address issues such as spousal support, property division, and inheritance.
Why Consider a Postnuptial Agreement?
Couples may consider a postnuptial agreement for various reasons, including:
1. Change in Financial Status: If one spouse receives a significant increase in income or inherits a large sum of money, the couple may want to amend the terms of their marriage to reflect the new financial situation.
2. Protecting Assets: A postnuptial agreement can safeguard assets accumulated before or during the marriage.
3. Uncertainty about Relationship: If the couple has been experiencing problems in their relationship, a postnuptial agreement can provide clarity and peace of mind in the event of a possible separation or divorce.
How to Create a Postnuptial Agreement
To create a postnuptial agreement, the couple needs to discuss the terms they want to include and consult with a lawyer who specializes in family law. The lawyer will draft the agreement, and both parties will need independent legal advice to ensure that they fully understand the document`s terms and implications.
It is essential to note that the agreement must be fair and reasonable for both parties to be legally binding. The court may overturn any provisions that it deems unfair or unjust.
Conclusion
A postnuptial agreement is a useful tool for couples who wish to clarify aspects of their marriage. It provides security and clarity in the event of a divorce or separation. However, couples should carefully consider the pros and cons before entering into such an agreement. Consulting with a lawyer who specializes in family law can help ensure that the agreement is legally binding and fair for both parties.