Although the title above is done with some humor, it is nonetheless a very serious subject. At Robert Floris’ Mortgage Architects office we try to advise clients what we would want to know if our roles were reversed. Today, we will touch upon entering agreements before getting married or living in common law.
It is no secret that 50% of marriages in Canada go bad. Having a prenuptial agreement can save you from the following financial and personal assets:
- Assets such as real estate, art or other financial investments.
- Future income over lost years of wages (stay at home parent).
- Retaining of a business.
- Keeping favourite pets.
If entering into a common law situation which is most prevalent today, then a document called a cohabitation agreement can be prepared to prevent financial loss in case of a break up.
Many parents are giving large down payments to their kids and insisting on prior financial agreements so that the intended use will stay within the family. In some cases some parents are taking mortgages out in their name instead of a financial institution so that monies must be paid to the mortgage first.
The only asset if married that cannot be argued is the couples own primary house. Under the Ontario family Law act, the value is split evenly. In common law situations the answers of total ownership can be dicey in determining final numbers.
Although odd to consider financial agreements and final settlements before you marry, the prudent thinking just may save you!
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