You are in a committed relationship and are considering marriage —it’s a time of excitement, optimism and commitment. While discussing your future, one important topic that often gets overlooked and should be discussed is a prenuptial agreement, or prenup. If you’re already living together and have a cohabitation agreement in place with your partner, it can be as simple as updating the agreement that’s already in place; however, for couples who haven’t already signed an agreement, it’s important to consider doing so before marriage.
For couples in Calgary, a prenup isn’t a sign of distrust; it’s a vital planning tool. It’s an agreement, entered into while everything between you and your partner is good, that allows you both to clearly define how your property and assets should be divided should your relationship change in the future. At BDL Family Law LLP, we view a prenup as a common-sense solution that builds clarity and stability into your life together.
What is a Prenuptial Agreement?
A prenuptial agreement is a formal contract signed by both partners before marriage. It outlines how assets, debts, and other financial matters will be handled in the event of a separation or divorce. In Alberta, these agreements are governed by the Family Property Act and are legally enforceable, provided they’re properly drafted, executed, and adhere to strict legal requirements.
The goal is simple: to replace the default legal rules for property division with an arrangement that’s customized to your unique circumstances and agreed upon by both of you.
Why You Need a Prenup in Calgary
While a prenup benefits any couple, it’s particularly essential if you or your partner have:
- Significant Assets: Property, investments, or savings accumulated before the marriage.
- Existing Debts: Mortgages, student loans, or lines of credit you wish to keep separate.
- Inheritance Expectations: Anticipating or having already received an inheritance or substantial gift.
- Business Ownership: Interests in a professional practice, private company, or family business that needs protection and clear validation rules.
- Children from a Previous Relationship: The desire to protect assets intended for your children’s inheritance or education.
What a Valid Prenup in Calgary Must Include
For a prenuptial agreement to be legally binding and enforceable in Calgary courts, it must meet three non-negotiable legal standards:
- Full Financial Disclosure: Both parties must fully and honestly disclose all assets, debts, and liabilities before the agreement is signed. Without complete disclosure, the agreement is vulnerable to being set aside.
- Independent Legal Advice: Each partner must receive and sign a certificate confirming they received legal advice from their own, separate lawyer. This ensures both parties fully understand the terms, their rights, and the implications of signing away any entitlements under the Family Property Act.
- Proper Execution: The agreement must be signed by both parties in the presence of their respective lawyers, adhering to all formal legal requirements.
What a Prenup Can—and Cannot—Cover
A well-drafted prenuptial agreement in Calgary can legally govern several key financial areas:
- Property Division: Specifies how family property (assets acquired during the relationship) and exempt property (assets owned before the marriage) will be divided.
- Spousal Support: Sets out whether spousal support will be paid, the amount, and the duration, or if it will be waived entirely.
- Debt Management: Clarified responsibility for existing or future debts.
However, a prenup cannot determine child custody, access, or child support. These matters are always governed by the best interests of the child at the time of separation, and the court will override any clauses in a prenup that attempt to limit a child’s right to support.
BDL Family Law LLP: Your Partner in Planning
At BDL Family Law LLP, we handle prenuptial agreements with the same care and common sense we bring to all family law matters. Our role is to ensure your agreement is fair, customized to your financial reality, and legally sound, providing you with certainty for your future together. We offer a transparent process that allows both parties to enter the marriage secure and aligned. Planning your future starts with a straightforward conversation.
Are you ready to discuss a prenuptial agreement in Calgary to secure your financial future? Contact BDL Family Law LLP today to book a confidential consultation.
