More and more British Columbia couples enter marriages with already acquired assets in their respective names. For this reason, signing marriage contracts are becoming a more accepted process than what it was years ago. Marriage agreements give both parties the opportunity to discuss goals, expectations, and plans for the future. The contract will contain their agreements related to the division of property in the unfortunate event of a divorce, and although that is a thought often rather avoided, getting it out of the way can provide peace of mind.

British Columbia has laws that provide guidelines for property division by the court. Couples who want to create rules that differ from those that will apply under the province’s family law can do it by drafting a marriage or cohabitation agreement. However, advisors suggest people must not sign such a contract before fully understanding the legal requirements and applications of it.

Such a contract will determine how assets gathered during the marriage or common-law relationship will be divided upon separation — also in the event of one spouse passing away before separation. The income, debts, and assets of each partner must be fully disclosed, and the signing of the contract must not take place on the eve of the wedding. Each spouse must fully understand the contents of the contract and the consequences of signing it.

The court will also prefer each spouse to have independent legal counsel when signing a marriage agreement. All the plans worked out for the division of property can be disregarded by a British Columbia court if it finds the marriage contract to be invalid. This can happen if the court finds that one spouse did not provide full financial disclosure or if one party can show that he or she did not fully understand what the agreement entailed. A marriage contract that was not signed well in advance of the wedding ceremony can indicate coercion or duress, in which case it can be declared invalid.

Got any family law questions? Contact our family lawyers in Coquitlam:

Laughlin & Company Law
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Source: business.financialpost.com, “What you need to know before you say ‘I do’ to a marriage contract“, Laurie H. Pawlitza, Accessed on July 7, 2017

Like other provinces and territories, British Columbia has a matrimonial and family law act that governor provides guidelines for — the way assets and debts are divided in a divorce. While many couples have complicated estates that include stocks or bonds, family businesses, real estate and more, deciding what to do about a matrimonial home is often the most difficult part of the division of property. It could be an equally challenging process in a divorce of a couple with average assets.

In British Columbia, a couple must have been in a marriage recognized as valid under the law to require the division of the marital home. In most cases, a common-law relationship does not give one party the right to claim a share of a home in the other party’s name. In the eyes of the law, a home in which the couple lived together during their marriage must be subject to equal distribution in divorce because marriage is considered an equal partnership.

While certain rules exist for other assets that will only be divided if acquired during the union, special rules are in place for the marital home which may require the assistance of a real estate lawyer. Assets that belonged to one spouse before the marriage will remain that person’s property, except the family home will be divided even if it belonged to one spouse before the wedding. If one spouse wants to keep the residence in which the couple lived, he or she can buy the other spouse’s share or give up equivalent assets; otherwise, it can be sold and the money shared equally.

Regardless of the wealth of a divorcing couple in British Columbia, if there is a marital home that will be part of the division of property, it could complicate matters. However, under the guidance and support of experienced Laughlin Law Lawyers, the various options available can be evaluated. Understandably, decisions that could post-divorce financial stability must be made with care.

Source: FindLaw Canada, “What happens to a matrimonial home after a separation?“, Miriam Yosowich, Accessed on March 27, 2017

Lawyer Port Coquitlam, British Columbia

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370