What really happens when a marriage ends—how are property, support, and equalization decided in a Canadian divorce?
There is nothing more common than the desire for certainty. The more variables involved, however, the less likely that ideal will be realized, and very few matters are more complex than matrimony. Approximately 40% of marriages in Canada end in divorce. Upon the breakdown of marriage, a number of issues need to be resolved before seeking a divorce order. How will the real and personal property accumulated during the marriage be divided? Are there any spousal support obligations, and if so, how much and for how long? What is equalization and what am I entitled to receive? These are just a few issues that arise when married spouses separate.
Contracts according to the law
The Family Law Act sets out in section 52(1) sets out what can and cannot be included in a marriage contract, and section 55(1) further sets out that these domestic contracts must be in writing, signed by the parties, and witnessed, but apart from these provisions there isn’t much guidance as to how the affairs of separating spouses will be settled.
When drafted correctly by an experienced lawyer, marriage contracts can provide a number of assurances. Marriage contracts can reduce conflict by setting expectations, wherein lawyers effectively communicate to the party the legal consequences and obligations in the drafting process. Marriage contracts can reduce the likelihood of litigation, saving individuals time, money, and distress. Marriage contracts can strengthen relationships, by dealing early on with financial issues that may arise in the event of separation. Most importantly, marriage contracts provide protection for certain assets acquired before the marriage and debts and liabilities brought into the marriage as well. An improperly drafted marriage contract, where financial disclosure is not exchanged, pertinent information is not disclosed, or informed consent is not present, whereby it is paramount that each party entering into the contract receive independent legal advice, may be set aside or overridden.
How we can help
Allow the experienced legal team at Boardwalk Law LLP to do the heavy lifting, assist you in drafting and executing domestic contracts, and provide you with the peace of mind that your rights and assets will be protected. Please contact Brandon Machado, Associate Lawyer at [email protected] / 905.798.5509 to book a consultation today.
