How to Handle Survivor Benefits and Equalization?

Congratulations on your upcoming marriage! This is a season of profound joy and shared aspirations. However, as you prepare for your life together in the Greater Toronto Area, it is also a time for "forward-thinking planning." At Sterling Law, we view ourselves as your partners in life, wealth, and legacy. Based in Brampton for over 30 years, our team, led by Helen Sterling Clarke, has helped thousands of couples in Mississauga, Oakville, and across the Peel Region navigate the legal complexities of joining two lives. While discussing a prenuptial agreement (often called a "Marriage Contract" in Ontario) might not feel like the most romantic pre-wedding task, it is one of the most strategic moves you can make to protect your assets and secure your family’s future. In fact, thirty-eight percent of Canadians who marry will eventually separate or divorce. A well-drafted agreement isn't about planning for failure; it’s about taking control of your financial destiny and bringing peace of mind to your new household. What is a Prenuptial Agreement Under Ontario Law? In Ontario, the Family Law Act governs how property is divided between spouses upon separation or death. Without a private agreement, the law dictates a process called the "Equalization of Net Family Property." This process essentially adds up the growth in each spouse's net worth during the marriage and splits that value 50/50. A prenuptial agreement allows you and your partner to "stay in the driver's seat." It is a valid, binding contract that sets out different terms and conditions from those provided by the Family Law Act or the Divorce Act. It allows you to define your own rules for fairness based on your unique circumstances. What You Can Include in Your Agreement A robust marriage contract drafted by the strategic team at Sterling Law can cover: Pre-Marital Assets: Identifying property you are bringing into the marriage and documenting its value to ensure it stays separate. Family Property Division: Deciding exactly how the matrimonial home or other shared assets will be dealt with if separation occurs. Spousal Support: Agreeing in advance on whether support will be payable, and if so, how much or for how long. Household Responsibility: Allocating economic responsibility for running the household during the marriage. Estate Planning: Agreeing on what happens to property if one spouse should pass away, which is critical for those with children from previous relationships. What You Cannot Include It is a common misconception that you can settle everything in a "prenup." Under Canadian law, you cannot make enforceable arrangements regarding: Custody and Access (Parenting Time): The courts decide this based on the "best interests of the child" at the time of separation. Child Support: You cannot contract out of the Federal Child Support Guidelines, as child support is considered the right of the child. Do You Specifically Need a Prenuptial Agreement? While every couple can benefit from the clarity an agreement provides, certain situations make a marriage contract essential for protecting your wealth and preserving your legacy. 1. You Are a Business Owner or Professional If you own a private corporation, a professional practice, or have significant stock options, these are "complex assets" that can be difficult to value and divide years later. A prenuptial agreement can shield your business from being liquidated or carved up during a divorce, ensuring business succession planning remains intact. 2. You Have a Significant Inheritance or Family Trust Under Ontario law, inheritances received during a marriage are generally excluded from equalization— unless they are put into the matrimonial home or comingled with family funds. An agreement ensures that family wealth stays within your bloodline and is protected from unintentional equalization. 3. This is a Second Marriage For those entering a relationship later in life, you likely have more assets and, potentially, children from a previous marriage. A contract is vital to ensure that your "Legacy" is preserved for your children while still being fair to your new spouse. The Sterling Law Approach: Sophisticated and Strategic With over 30 years of experience, we at Sterling Law understand that we are working with real people with unique situations and aspirations. We don't believe in "cookie-cutter" legal documents. We offer tailored strategies grounded in financial acumen and empathy. Proactive Protection of Your Future We guide you through the process of Financial Disclosure , which is the "gold standard" for making a prenuptial agreement enforceable. If both parties do not fully and honestly disclose their assets and debts before signing, the contract could be set aside by a court later. Our integrated approach helps you take control, reducing the stress that comes with life’s transitions. Negotiation vs. Litigation While we are skilled negotiators dedicated to reaching respectful, private resolutions through collaborative family law and mediation, we are also formidable litigators. If an agreement is challenged, or if the other party is being unreasonable, we are prepared to defend your interests and your assets in court. Securing Your Peace of Mind Marriage is one of life’s most significant periods of growth. By addressing the "what ifs" now, you allow yourself and your spouse to focus on building a life together without the looming cloud of legal uncertainty. A prenuptial agreement is not a sign of distrust; it is a sign of respect for each other’s hard-earned assets and a commitment to transparency. At Sterling Law, we are more than just lawyers; we are your partners in protecting your wealth and securing your family’s future. From our home in Brampton to the vibrant communities of Richmond Hill and Vaughan, we are here to help you navigate this moment with confidence and discretion. Are you ready to protect your personal and business assets before your big day?

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