Do you need a Marriage Contract?
When a couple is thinking about their upcoming marriage, they are thinking “happily ever after” and not the end of their relationship. However, there are many reasons to have a Marriage Contract. A Marriage Contract can be entered into prior to the marriage or at any point within the marriage.
Here are 5 Reasons why you should consider a Marriage Contract:
You wish to control how Assets or Property are divided upon separation – A Marriage Contract may change how assets and property are divided upon separation. If you do not have a Marriage Contract, the property division will be determined according to the current legislation, which may be something that you wish to avoid.
If this is your Second Marriage – If you are entering a second marriage, it may be very important to have a Marriage Contract to specifically deal with any issues or obligations that have arisen from your prior relationship.
You wish to protect family business – If you have an interest in a family business that you wish to keep out of the division of property should you and your partner separate.
If you and your partner are contributing vastly different amounts towards a home – It is common a couple may have very difficult abilities to contribute towards a down payment or purchase of a property. If the marriage ends, typically, the matrimonial home is equally divided despite the amount that each individual contributed towards the purchase price, mortgage or upkeep. A Marriage Contract can change the assumption of equal division of the matrimonial home. In a typical situation, upon the sale of the matrimonial home, each party receives back their initial down payment plus 50% of the growth of the property. In a Marriage Contract, you can amend the assumption to what will make more sense in your particular situation.
It opens up Communication – Although at first it may seem that having a conversation about a Marriage Contract is looking at a situation where the marriage will fail, the opposite is true. Having an in-depth conversation about your future, different situations that may occur as well as what each of you expect, may ultimately strengthen your relationship and encourage open communication. This can be especially true if you choose to have these discussions within the Collaborative Law Process.
There are many valid reasons to enter into a Marriage Contract, either before the marriage or during the marriage. It is important to have a consultation with a lawyer about your particular situation as each situation is unique and requires its own resolution. Each individual will need to have his or her own lawyer to discuss the details of the Marriage Contract as well as provide financial disclosure. Mediation and the Collaborative Process are both excellent methods in having these important discussions and reaching an Agreement.