Nowadays, many people decide to get a prenuptial agreement Canada to safeguard their financial position. While, at first glance, it might seem a radical movement, for many, it is actually reasonably practical to take such an action.
Not every couple who are ready to tie the knot is comfortable around each other when it comes to their finances. But, that is okay as they could have various reason to feel that way. Thus, for them, it is quite an excellent decision to sign a prenup.
However, a lot of couples are not at ease with the idea of signing a prenup. They often wonder what happened if you do not have a prenup. Thus, we are here to help you educate about prenup.
What is a Prenuptial Agreement?
A prenuptial agreement, also known as a prenup, is a contractual agreement signed by a couple before getting married. In this agreement, the couple list down all the debts and properties each of them owns and the rights their partner will have on their properties.
What Happens If You Don’t Have a Prenup?
We have come to live in a time when signing a prenuptial agreement has become an essential part of getting married. There was a time when the prenup was optional, while right now, securing an individual’s financial position is extremely important for various internal and external reasons.
If you or your partner does not want to draw up and sign a prenuptial agreement, then it is okay. It is your decision. However, many would argue that it might not be a wise decision for the following reasons:
- Your personal assets and properties will not be secured as solely yours, and the same will happen for your partner.
- If you and your partner decide to get a divorce for whatever reason, then most – if not all – of your financial belongings will be divided between the two of you on an equal share.
- You might or might not have any rights over your partner’s properties and assets.
On that note, however, keep in mind if you and your partner do not want to sign a prenuptial agreement, it is an absolutely valid decision. To feel that kind of security is a blessing, and you do not have to feel the pressure of drawing up a prenup and signing it.
When Does a Prenuptial Agreement Become Invalid?
Similar to every agreement, a prenuptial agreement can become invalid too under various circumstances or after a certain period of time. Some of the reasons that make a prenup invalid are:
- If one partner does not sign the contract with full consent.
- If the contract is made and signed under pressure or blackmail.
- If the agreement consists of unfair terms and conditions.
- If the couple agreed on something verbally but did not mention it in the agreement.
- If the contract consists of incorrect information.
- If one or both parties fail to disclose all financial information.
- If the agreement is signed after the wedding.
- If the agreement has clauses that seem bias towards one party.
Cost of Prenuptial Agreement
The cost of a prenuptial agreement in Canada is not consistent. The overall cost is calculated after taking many factors into consideration. Some of the factors that are matter while calculating the price of a prenup are:
- The state you live in.
- The lawyer you hired.
- Your financial position, i.e. the number of assets or properties you have.
- Other financial complexity.
- Family complexity and dynamics.
Keeping all these in mind, a prenup usually costs on an average within the range of $500 to $2000. On the other hand, if you are wondering about the litigation costs, that will cost around $10 000 to $90 000.
A Prenuptial agreement is only a piece of document that is signed as future insurance. Unfortunately, some couples make the grave mistake of letting that document define the depth of their relationship. We would advise you to avoid making such a mistake.
Some of you might agree it is essential to sign a prenup, while some of you might not. Prenuptial agreement is a practice that does not have a correct answer. In both categories, as mentioned above, people are right in their own place.