Whether you’re launching a new venture or growing a business you’ve poured years into, protecting your business assets is key, especially when marriage is on the horizon. Many entrepreneurs don’t realize that their company could be at risk during a divorce, even if it was started before the marriage.
The good news? A prenuptial agreement can provide clarity and protection for your business and your future.
In Canada, premarital property refers to assets you owned before getting married. This includes:
While some provinces exclude the value of premarital property from equal division during divorce, any increase in value during the marriage may be shared, unless you have a prenup in place that says otherwise.
If your business grows during your marriage, or if your partner contributes financially or otherwise, it may become subject to division in the event of a divorce. A prenup helps you define boundaries from the start.
A pre-marriage property agreement, commonly known as a prenup, lets couples decide in advance how assets, including business interests, will be treated during the marriage and in the event of a separation.
For business owners, a prenup can:
This isn’t about anticipating failure. It’s about planning wisely, just like you would with an insurance policy or shareholder agreement.
Without a prenup, your spouse could:
A prenuptial agreement can state clearly that your business ownership remains separate, including how any future growth or dividends will be treated.
This helps ensure that personal issues don’t impact your professional life or the people you employ and serve through your business.
If you’ve built your business using personal savings, loans, or family support, a prenup can protect those efforts by keeping your finances separate. This can include:
By keeping finances separate and documenting them clearly, you reduce the risk of conflict or claims down the line.
Yes. Many people think a prenup only protects what you already own, but you can also address future assets.
For example, your prenup can include:
If you’re asking, “Can a prenup include future assets?” the answer is absolutely, as long as the agreement is drafted clearly and with full disclosure.
A prenup can also protect:
Without a prenup, the increase in your home’s value or contributions that you make during the marriage may be subject to division, even if you were the sole owner on paper.
A prenup isn’t mandatory, but it’s strongly recommended. Prenups are designed to be signed before the wedding. If you’re already married, you can create a postnuptial agreement, which offers the same protection.
Whether you’re drafting a prenup or postnup, the key is to start the conversation early. The more time you have to create the agreement thoughtfully, and without pressure, the better it will hold up legally.
With platforms like Jointly, you can walk through the process step-by-step, on your schedule and without the high costs of traditional legal services.
For a prenup to be valid and enforceable in Canada, both partners must:
Without these elements, the agreement could be challenged in court. That’s why Jointly is designed to walk you through each step, making sure both partners are fully informed and confident before signing.
You’ve worked hard to build your business. Don’t leave its future up to chance. A prenuptial agreement gives you the power to:
At Jointly, we make it easy for Canadian entrepreneurs and their partners to create custom agreements that reflect their values and goals without expensive legal fees.
Ready to protect your business before you say “I do”?
Start your prenup today.