Prenuptial agreements can be extremely helpful for couples planning to live together or get married, regardless of what stage of life they are in. Referred to as domestic contracts or marriage contracts (once legally married) in Ontario, prenuptial agreements set out rules for how you will resolve differences with another party if your marriage breaks down. In it, you are able to protect your assets or even outline expectations for spousal support after divorce.
When it comes to second marriages and blended families, there are usually additional, complex financial and personal circumstances that must be taken into consideration. In many cases, parties will be bringing more assets into the marriage and will have multiple children to think about. For this reason, setting clear expectations for equalization of property, asset distribution, or dispute resolution mechanisms in a prenuptial agreement is extremely important when you get married for a second time.
At Gelman & Associates, our Toronto family lawyers have years of experience guiding clients through the creation and application of their marriage contracts. We understand that prenuptial agreements can bring you and your partner clarity, control, and peace of mind. Whether you would like to draft an agreement prior to your marriage or you need assistance navigating your legal obligations after separation, we’re here to help. To discuss how a prenuptial agreement may benefit your second marriage, schedule a consultation with our family lawyers today.
Considerations For Prenuptial Agreements in Second Marriages
When you decide to get married for a second time, the prenuptial agreement you create with your partner will function the same as any other prenuptial agreement. However, the provisions you decide to include may change according to the assets you hold and any new family members you need to think about. You may want to take into account factors like:
- Relative Financial Positions: You should think about both your and your partners’ current financial standing. This will include things like your individual assets, income, and liabilities. Many people bring significantly more assets into second marriages compared to first marriages because they have been working for longer.
- Age & Life Stage: When older couples decide to marry, they are more likely to have established solid financial lives. For this reason, they are more likely to need a prenup if their marriage breaks down.
- Expectations for Separation & Death: Because second marriages often take place at a later stage in life, it’s important to think about how assets will be handled in the case of both divorce and the passing of a spouse. You can decide how your property will be divided if you separate or if one of you should pass away. It’s important to note that such provisions in your prenup may be overidden by conditions in a will, if the prenup allows for that.
- Children & Step-Children: When you enter into a second marriage, you and your partner may be blending children from your first marriages. You may want to think about how your assets will be balanced between your children, step-children, and second spouse in the case of death or divorce.
You may create and sign a domestic contract (or prenuptial agreement) before or after you’re legally married to your partner. When you do get married, your domestic contract will become a marriage contract. In addition, if you created a cohabitation agreement with your partner before you intended to get married, it will automatically convert into a marriage contract once you are married.
Whatever your unique circumstances look like, you can tailor your domestic contract to suit your needs. An experienced family lawyer will be able to advise you on helpful provisions and how to keep your assets and loved ones protected.
The Benefits of a Prenuptial Agreement for Second Marriages & Blended Families
There are many benefits that a prenuptial agreement can provide to spouses getting married for a second time. One of the most common reasons that partners decide to create domestic contracts is to prevent the value of their assets from being divided upon their separation. If you do not have an agreement that outlines this expectation, the Ontario Family Law Act (FLA) will apply. In most cases, it stipulates that equalization of net family property between you and your spouse must take place, regardless of the individual contributions you made to the marriage. In cases of second marriages or high net-worth divorces, spouses often desire to keep their own assets if the marriage ends. You can ensure this happens with a prenuptial agreement.
In addition, you can make sure your children receive all of your assets or inherit family wealth. A prenuptial agreement will help ensure that your assets are not reduced or diluted by equal division upon separation. As a result, your wealth will be preserved for children or step-children you wish to pass it on to, even if you get a divorce.
Prenuptial agreements can also be helpful for outlining your inheritance expectations if you pass away. This is especially important for blended families, because you may want to preserve assets for children or step-children.
In addition to these common benefits, domestic contracts allow you to outline expectations for a range of financial and personal circumstances. By doing so, you can ensure clarity for yourself, your spouse, and your family. In your prenuptial agreement, you can address things like:
- Spousal Support: In the event that you separate from your partner, you can outline how spousal support will be paid. You can set a cap on the amount to be paid, or the length of time you’ll need to make payments for. You can also waive the payment entirely.
- Wills & Estate Plans: You can ensure that your domestic contract aligns with your will and estate plan. This will help you avoid conflicting instructions in the event you pass away. It will also clearly define your intention to support a spouse or preserve an inheritance to children from previous relationships, as previously mentioned.
- Living Arrangements: In the event of a separation or divorce, you can designate how real estate will be shared and occupied. This can be helpful in second marriages where multiple properties are owned. In addition, it may help reduce tension in blended families when children still live at home.
It should be noted that cohabitation agreements and marriage contracts cannot address certain things in Ontario, such as child support and most types of parenting arrangements.
By defining your expectations for separation and divorce clearly in a prenuptial agreement, you can ensure greater peace of mind for both yourself and your family. A detailed contract will prevent misunderstandings between spouses, children, or extended family. In addition, preparing legally binding agreements minimizes your risk of litigation during separation, or for your family after you pass.
Need Support for a Second Marriage or Blended Family? Contact Gelman & Associates Today
Second marriages and blended families bring added emotional and financial layers to your life. A thoughtfully crafted domestic contract will help you:
- Preserve your assets
- Set clear expectations
- Protect children and future generations
- Maintain harmony within your blended family
- And more
Prenuptial agreements/domestic contracts are not only for people with a lot of wealth. They can benefit anyone entering into a marriage with prior assets or obligations. Because you may have more responsibilities when you get married for a second time, it’s important you protect your interests.
To talk about your legal options when it comes to prenuptial agreements or marriage contracts, contact our Toronto family lawyers at Gelman & Associates today. We can advise you on the drafting or enforcement of your contracts.
