When most people hear the word prenup, they picture wealth, celebrities, or complicated financial arrangements. In reality, a prenuptial agreement is a practical planning tool that is essential for all Canadian couples, regardless of their income or assets.
Prenups can prevent conflict, create clarity, and give couples the peace of mind that they’ve had open conversations about money and expectations before marriage. But what exactly does a prenup protect – and what doesn’t it cover?
This guide will walk you through the essentials.
What Is a Prenup?
A prenuptial agreement (or “prenup”) is a legally binding contract entered into before marriage. It outlines how assets, debts, and financial responsibilities will be handled if the marriage ends in separation, divorce, or death.
Prenups aren’t about assuming the worst. They’re about planning for the future, protecting both partners, and ensuring that decisions about property and finances are made while the relationship is strong, rather than during a difficult breakup.
Who Should Get a Prenup?
Many people think prenups are only for the wealthy. In reality, a prenup can be valuable for:
- Couples with unequal assets or debts – A prenup can protect each person’s financial contributions.
- Business owners or entrepreneurs – To keep business interests separate.
- Second marriages – Especially when children from previous relationships are involved.
- Couples expecting future inheritance – To safeguard family wealth.
- Anyone who values clarity – Even couples with modest assets can benefit from setting clear expectations.
What Does a Prenup Protect?
A prenup can protect a wide range of financial and personal interests.
Financial Assets Protection
Prenups help define what belongs to each partner individually and what is shared. In your prenup, you can set out an inventory of what each partner is bringing into the marriage as previous property. If you separate in the future, each partner typically gets to keep whatever they brought into the relationship – this property is not divided between partners. However, if you’ve been together for a long time, it can be hard to remember what you brought in many years earlier without a written record to prove it. Your prenup can make this easy.
Does a Prenup Protect Future Assets?
Under provincial law, future assets – like income earned during the marriage – are usually considered marital property. That means that unless you have an agreement, this property is presumed to be divided equally if you separate in the future. However, if you have a prenup, you can set out rules for how future assets will be divided, such as savings, investments, or real estate. In a prenup, this division of assets doesn’t have to be 50-50, as long as each partner is reasonably provided for.
Personal Property and Premarital Assets
A prenup can protect assets you bring into the marriage, like savings, vehicles, jewelry, or other valuables, ensuring they remain your personal property.
Inheritance and Family Wealth
If you expect an inheritance, a prenup can keep it separate from marital property so it stays in your family line. This is especially important if parents or grandparents want assurance that family wealth won’t be divided in a divorce.
Business Ownership and Investments
Business interests can be clearly protected in a prenup. This prevents your spouse from gaining control or ownership of a company you founded or invested in before marriage.
Debt Protection
Just as prenups protect assets, they also shield you from liabilities.
Shielding One Partner from the Other’s Debt
If one partner has significant debt (like credit cards or loans), a prenup can ensure the other partner isn’t held responsible if the marriage ends.
Student Loans, Credit Cards, and Mortgages
Debt from education, personal loans, or large mortgages can be isolated in a prenup, preventing the financial burden from being shared unfairly.
Spousal Support and Alimony
Prenups often address whether spousal support (also called alimony) will be paid after divorce.
Can a Prenup Waive Spousal Support?
Yes, in some cases. A prenup can include a waiver of spousal support. However, courts will review these provisions carefully to ensure they are fair and not unconscionable. If one partner made career sacrifices for the other or left the workforce to care for children, spousal support typically should not be waived unless it is made up for in other ways (such as a large transfer of assets).
Legal Considerations and Enforceability
Each province in Canada has rules about what can and cannot be included in a prenup. A spousal support waiver, for example, may not hold up if it leaves one partner in significant financial hardship. In our free Prenup Starter Kit, you can learn more about how to make your prenup enforceable.
Division of Property
Prenups help outline how marital property will be divided if the marriage ends.
Marital vs. Separate Property
A prenup defines what counts as “marital property” (shared) and what remains “separate property” (owned individually).
Real Estate, Retirement Accounts, and Savings
You can specify how homes, retirement accounts, pensions and joint savings will be divided. This prevents disputes and lengthy negotiations later.
Protection for Children and Family
Prenups are also a way to safeguard family legacies.
Protecting Children from Previous Relationships
A prenup can ensure that children from prior relationships retain rights to certain assets, like inheritance or real estate.
Family Heirlooms and Sentimental Assets
Special belongings – like jewelry, art, or family heirlooms – can be designated as separate property in a prenup.
What a Prenup Cannot Protect
While prenups are powerful, they do have limits.
Child Custody and Child Support
A prenup cannot decide custody arrangements or child support. Courts always prioritize the child’s best interests, and these decisions can’t be pre-determined by a private contract. Canadian courts have decided that the best time to determine what is in the best interests of the child is at the time of separation.
Anything Against Public Policy or Provincial Law
Prenups can’t include terms that are unfair, illegal, or contrary to public policy. For example, you can’t waive child support obligations or impose personal lifestyle rules (like household chores).
Why Do People Get a Prenup?
People get prenups for peace of mind. By addressing financial issues in advance, couples avoid uncertainty and reduce the risk of conflict.
- Transparency – Encourages honest conversations about money.
- Protection – Safeguards assets, businesses, and inheritances.
- Fairness – Ensures both partners know what to expect if the marriage ends.
- Efficiency – Can reduce costly legal disputes during separation or divorce.
How to Make a Prenup Agreement
Creating a prenup is a structured process:
- Start early – Begin discussions well before the wedding.
- Full financial disclosure – Both partners must share their assets, debts, and income. We include a financial disclosure worksheet in our free Prenup Starter Kit.
- Discuss expectations – Talk openly about money, debt, and long-term goals.
- Draft the agreement – Use Jointly’s online service to create your agreement in as little as 20 minutes.
- Independent legal advice – Each partner should review the agreement with their own lawyer to ensure fairness. This isn’t mandatory in all provinces, but is always a good idea and helps to make your agreement enforceable.
- Sign before the wedding – Prenups must be finalized prior to marriage to be valid.
Final Thoughts
A prenup isn’t just about protection – it’s about partnership. By clarifying financial expectations and safeguarding individual interests, prenups strengthen relationships and reduce stress down the road.
Whether you’re protecting future assets, shielding yourself from debt, or ensuring family wealth is passed on as intended, a prenup can provide both clarity and peace of mind.
If you’re considering a prenup, resources like Jointly can help you create a fair, affordable, and accessible agreement tailored to your needs. Get started today and create your legally-compliant prenup in as little as 20 minutes.
FAQs
What does a prenuptial agreement protect?
It protects assets, debts, business interests, and family inheritances, while also outlining rules for property division and spousal support.
Does a prenup protect future assets?
Yes, it can, if written clearly. However, future earnings during marriage are usually marital property unless the prenup specifies otherwise.
Can a prenup waive spousal support?
Yes, but courts may strike this down if it creates unfair hardship.
Who should get a prenup?
Anyone who wants clarity in financial expectations, whether they have significant assets, debts, businesses, or children from previous relationships.
How do you make a prenup?
By starting early, fully disclosing finances, drafting an agreement, and obtaining independent legal advice before marriage.
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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