When it comes to planning for the future, most couples focus on things like wedding details, buying a home, and starting a family. However, one important aspect that often gets overlooked is financial planning within a marriage.
In Canada, prenuptial agreements (prenups) and postnuptial agreements (postnups) are legal tools that help couples establish financial expectations while they are together and protect their assets in case the relationship ends in the future. We’ve set out below how these agreements work, and the differences between prenups and postnups.
What Is A Prenuptial Agreement?
A prenuptial agreement, commonly known as a prenup, is a legal contract signed before marriage that outlines how a couple’s assets, debts, and financial matters will be handled during the marriage and in the event of a separation or divorce.
Prenups are customized to reflect the couple’s unique circumstances, covering issues like:
- Confirmation of premarital assets
- How family property and assets should be divided
- Spousal support arrangements – how much will be paid and for how long
- Responsibilities relating to debt
- Protection of inheritances and any business interests
While commonly associated with high-net-worth individuals, prenups can benefit any couple looking for financial clarity and security before getting married. Prenups aren’t just for the rich and famous!
Benefits Of A Prenuptial Agreement
A prenup offers several advantages, including:
- Asset Protection – Safeguards pre-marital assets, inheritances, and business interests
- Debt Protection – Clearly defines responsibility for pre-existing debts to prevent one spouse from being burdened unfairly
- Clarity & Transparency – Encourages open discussions about finances before marriage, setting realistic expectations
- Reduced Conflict in Divorce – Pre-established terms can streamline the separation process, minimizing stress and legal costs
- Protecting Children from Previous Relationships – Ensures that assets intended for children from a prior relationship are preserved
What Is A Postnuptial Agreement?
A postnuptial agreement, or postnup, is similar to a prenup, except it is created after a couple is already married. It serves the same purpose, defining financial responsibilities and asset division, but it is signed during the marriage instead of before. These agreements are also commonly called marriage agreements.
One common reason that couples make postnups is that they overlooked making a prenup before the wedding. Some other common reasons include:
- A change in financial circumstances (e.g., an inheritance or starting a business)
- A shift in the relationship dynamic that would benefit from clearer financial boundaries
- Making financial adjustments after a significant event like childbirth
Benefits Of A Postnuptial Agreement
A postnup provides many of the same benefits as a prenup, including:
- Clarifies Financial Expectations – Helps couples manage assets, debts, and responsibilities within the marriage
- Protects Individual and Shared Assets – Ensures that certain assets remain separate while defining how shared property is managed
- Reduces Future Legal Disputes – Helps prevent lengthy, costly divorce proceedings by setting clear terms in advance
- Strengthens the Marriage – Encourages honest financial discussions, which can lead to a healthier, more transparent relationship
- Accommodates New Financial Situations – Allows couples to adjust their financial plan as circumstances change
Key Difference Between Prenup And Postnup
The main difference between a prenup and a postnup is timing:
- A prenup is signed before marriage and takes effect when the couple gets married
- A postnup is signed after marriage and takes effect immediately upon signing
Even if you have a signed agreement, whether postnup or prenup, courts across the country can still decide that your agreement is unfair and not enforceable.
To increase the chances of a court finding that your agreement is enforceable, it’s important that both parties:
- Provide full financial disclosure
- Make sure the agreement is relatively fair given your circumstances
Who Needs A Prenuptial Agreement?
A prenup is beneficial for couples who:
- Own significant assets before marriage
- Have children from previous relationships
- Expect to receive a large inheritance
- Own or plan to start a business
- Have different financial backgrounds or debt levels
- Want to outline spousal support terms in advance
Even if none of the above apply, a prenup can still provide peace of mind by setting clear financial expectations before marriage.
A prenup can also provide a snapshot of the assets that each party is bringing into the relationship. Assets acquired by each party before marriage are called excluded property, meaning that they typically are not included in the property that is later divided if a couple separates, with some exceptions.
Who Needs A Postnuptial Agreement?
A postnup is a good option for couples who:
- Didn’t sign a prenup but now want financial clarity
- Have experienced a major financial change (e.g., starting a business, receiving an inheritance)
- Want to protect one spouse from the other’s debts
- Have undergone marital challenges and want to redefine financial arrangements
- Are planning for estate and inheritance matters
When To Get A Prenuptial Agreement
The best time to get a prenup is well before the wedding, at least a few months in advance. This allows both parties to discuss terms thoughtfully without pressure and ensures that the agreement is legally enforceable.
Signing a prenup too close to the wedding date can raise concerns about undue pressure or lack of sufficient time for legal review, which could impact its enforceability later on.
When To Get A Postnuptial Agreement
A postnup can be created at any time during the marriage. However, couples should consider getting one if:
- They didn’t sign a prenup but now see the benefits
- They are making a major financial decision together
- They want to protect assets acquired during the marriage
- They have concerns about financial disputes affecting their relationship
Conclusion
Both prenuptial and postnuptial agreements provide valuable financial protection and clarity for couples. Whether you’re planning your wedding or already married, having a legal agreement in place can strengthen your financial security and relationship stability.
At Jointly, we make the process of creating a legally sound prenup or postnup affordable, accessible, and easy to understand. Our online agreement builder helps you create a customized, lawyer-approved document that fits your unique situation without the hefty legal fees.
💡 Thinking about a prenup or postnup? Start your agreement today and take control of your financial future.
I founded Jointly because I want to empower more Canadians with the knowledge and tools to create relationship agreements that work for them, at a price they can afford. My big dream? That reaching more Canadians with Jointly ultimately keeps more families out of the court system when relationships breakdown, which can be slow, expensive and traumatic. (I may or may not have personal experience with this 😅)
When I'm not lawyering, I'm most likely hiking with my dogs, kayaking the coastal waters around North Vancouver, or hitting the sauna and cold plunge.
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