Prenups can be an uncomfortable subject, but a great help in the case of Hartzeer – Moneysense

There is a certain stigma that can come up with a marital conditions or cohabiting agreement, which outlines the fate of the assets of a few if their marriage or common relationship would end. Some can claim that it indicates a lack of trust or endurance of the relationship. But the conversation does not have to become acidic, experts say.

Most professionals will recommend a prenup for couples with a wealth inequality, or if one of them is bound to inherit money from family, and even in situations of second marriages, to make the distribution of assets clear.

From assets to expectations, prenups set the basic rules

But with more people who come together later in life, many already have their own assets such as a house, vehicle or have larger investments and savings. Prenups were able to keep that assets and keep track of what every spouse has in marriage or cohabitation, said Aimee Schalles, a lawyer and co-founder of joint Solutions Ltd., an online platform for marital conditions and coherent agreement.

“We believe that prenups are for everyone,” said Schalles. “We think that even people who don’t have much can take advantage of what clarity in documenting what their schemes are, and at least what they put in the relationship.”

A divorce usually follows the standard provincial family law in the absence of legal prenuptial agreement.

Holly Levalliant, Consultant Estate and Trust at Scotiatrust, said that although they do not always recommend a prenup for all its customers, splits can be difficult without a pre -established agreement. “You don’t get married to the same person you separate,” she said. “You can end up in a situation where you later regret that you don’t have those conversations.”

Levalliant said that marital conditions require that both partners make their full financial picture public. Hiding assets and debts can make the agreement invalid. The partners must also ask each independent legal advice, she added.

Prenups protect assets and offer financial peace of mind

Although mainly prenups are made to protect the assets of each person, it can also help to accept your partner’s fault. In most provinces, some people continue to bring them to their marriage, including debts, Schalles said. “If you were to enter into a relationship with a lot of student debt in most provinces, that would be yours to keep and your responsibility to pay,” she said.

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But just like assets, debt can collect interest – which the partners may have to share. That can be avoided with a marital conditions.

The timing of these similarities is also very important, experts say. For example, marital conditions cannot be drawn up a day before the wedding, which can cause one person to feel pressure to sign the papers without a choice or time to find a lawyer.

“The courts look at issues such as: When was the wedding planned? Were people traveling the wedding? Invitations have been broadcast?” said Levalliant. “If you put too much pressure on that party where they feel that they have no choice but to sign, it can be an invalid agreement.”

A flexible prenup grows with your relationship and circumstances

How the conversation deals with marital conditions can depend on how the subject is discussed.

Talking about marital conditions is essentially an expansion of financial planning, said Blair Evans, assistant vice-president of tax and estate planning at IG Wealth Management. “Sometimes discouraging a financial discussion, but the more financial discussions that you have with your partner, in general they become less discouraging,” he said.

Schalles said that the storytelling method could help through the difficult part of it. “Unfortunately, almost everyone knows someone who has experienced a bad split,” she said.

A way to bring the word “prenup” without conflict could shift it during financial check-ins. “It could be to say to your partner:” Hey, you know, do you remember our friend Jonathan and that terrible split that he had a few years ago and how much stress it caused him and his ex-wife? I don’t want that for one of us, “said Schalles.

She added: “If we want to find ourselves in this situation, I would prefer that we have a plan in advance, so that we do not notice that we will continue what they have passed through, because everyone agrees that it is ugly.”