A Prenuptial Agreement is a contract between two people who are planning on getting married. Clients often ask if a Prenuptial Agreement is worth the paper on which it is written. I can tell you that it is. In a Prenuptial Agreement, it is typical for future spouses to identify and state their agreements on essential issues in their relationship, such as the division of property, religious upbringing of children, and support. Couples often set out how they will divide their assets in the event of a divorce or separation. Prenuptial Agreements are extremely valuable in navigating the rough waters of a breakup or divorce. 

A Prenuptial Agreement cannot regulate the daily life of a married couple. For example, a Prenuptial Agreement cannot set out who will do the chores or care for the children. Prenuptial Agreements that tries to spell out specific details of a couple's day to day life may be impractical to enforce.  

Under the laws of the Province of Alberta, couples can enter into legally binding Prenuptial Agreements. A Prenuptial Agreement can help parties avoid future unjust enrichment claims and the accompanying costly litigation by explicitly spelling out the division of assets, liabilities, and income, between the parties in the event of a separation or divorce. In creating Prenuptial Agreements, couples need to consider the grounds on which Prenuptial Agreements may be challenged in a court of law. Under the Matrimonial Property Act, parties signing a Prenuptial Agreement must understand the nature and effect of the Prenuptial Agreement. Both parties must be aware of the potential relinquishment of a claim otherwise available under the Matrimonial Property Act and execute the Prenuptial Agreement freely and voluntarily. Prenuptial Agreement can be complex and often overwhelming, you can contact Onosen Mike-Ifeta at 587-566-6525 or email at onosen@archlawoffice.ca for legal advice on preparing or signing a Prenuptial Agreement.

The courts in Alberta have interpreted the Matrimonial Property Act as requiring full and accurate disclosure of the finances of the parties for a just and fair division of property to take place. If one party misrepresents or neglects to mention financial information to the other party in the Prenuptial Agreement, the courts have found such Prenuptial Agreements to be invalid, because the parties are not fully aware of what they may be relinquishing. Prenuptial Agreements will be vulnerable to attack in most jurisdictions if a future spouse was not provided detailed disclosure of financial circumstances.

There should be no guesswork; disclosure means full disclosure. 

Finally, Prenuptial Agreements signed under duress or unconscionability are invalid under Alberta law. Parties who take advantage of the vulnerability of the other party or who have undue influence over the other party in executing the Prenuptial Agreement have had their Prenuptial Agreement declared invalid.

Overall, Prenuptial Agreements are a good idea, provided that they are legally valid. They are essential in helping Alberta couples avoid expensive litigation stemming from a divorce or separation and help the parties sort through their property and obligations and move on from the breakup. If you are considering preparing a Prenuptial Agreement, or you would like to independent legal advice before signing a Prenuptial Agreement, I am available to assist you. Contact Onosen Mike-Ifeta at 587-566-6525 or email at onosen@archlawoffice.ca.