Estate planning and financial management with a prenuptial agreement.

PRENUPTIAL AGREEMENTS

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Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

A prenup, or prenuptial agreement, is a written agreement between two people who are contemplating marriage and addresses the division of assets if that marriage breaks down. Prenuptial agreements thereby alter or confirm the legal rights and obligations that would otherwise arise under the laws governing marriages that end either through divorce or death; recognizing that prenuptial agreements are fraught with controversy as to their appropriateness and their enforceability.

Prenuptial agreements are of increased consideration in a number of circumstances, including:

  • one person has substantial assets that they wish to keep independent from their intended spouse;

    • one person is a business owner;

    • one person is entitled to substantial earnings / royalties;

    • one person is the beneficiary of old wealth;

  • one or both people have already disgorged substantial wealth and assets upon ending a prior relationship;

  • one or both people have estate plans for their children, generally from prior relationships, to inherit particular assets;

  • one person’s monetary habits and style are significantly different from the other person; or

  • one person has financial or creditor problems.

When a prenuptial agreement is done properly, and discussed early, it can be an effective wealth protection tool for all parties involved. A prenuptial agreement can also be an effective way to avoid court proceedings and minimize the potential financial and emotional toll on a couple if the relationship ends in a divorce.

As such, it is imperative that the prenuptial agreement is prepared such that it might withstand legal scrutiny should it be challenged in Court at a later date. This requires independent legal counsel be retained by each of the signatories to the prenuptial agreement, together with the accurate collection and dissemination of each participant’s assets, liabilities and income to their prospective spouse.

As a result, prenuptial agreements are more than a piece of paper that the participants sign off on, as it requires substantive legal work to meet established legal requirements, such that it might direct the division of assets should the relationship fail.

For knowledgeable legal representation in the development of prenuptial agreements, and other estate planning and financial management arrangements, contact our law firm by email at Chris@NeufeldLegal.com or by telephone at 403-400-4092 / 905-616-8864.

 

What is a Prenuptial Agreement

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