Prenuptial agreements (often referred to as prenup agreements or cohabitation agreements) are valid in Alberta and, in many cases, are a good idea to protect yourself in case of a future separation from your partner.
Many Albertans are uncomfortable asking their partner to sign a prenuptial agreement, as they worry it will cause a fight or signal to their partner that they don’t trust them or lack confidence in the relationship. However, wanting a prenuptial agreement is not necessarily indicative of a problem; it may simply be a way for both parties to protect themselves in the event of a future relationship breakdown. Considering the rate of divorce in Canada, being proactive to protect yourself is a wise idea.
When to Consider a Prenuptial Agreement
Every couple can benefit from documenting their financial plans before getting married. A prenuptial agreement sets clear expectations about property, support, and financial responsibilities, helps protect premarital assets and family interests, and can reduce uncertainty, cost, and conflict if the relationship ends. Even partners with modest means may find value in documenting intentions around savings, debt, inheritance, and decision-making.
What Can Be In A Prenuptial Agreement in Alberta
A prenuptial agreement can pre-determine how assets are to be divided in a separation, how spousal support is to be paid, parenting and child custody arrangements, and nearly anything else the parties desire. By negotiating this agreement prior to the hard feelings associated with a separation, the parties are better able to remove emotion from the process and reach an agreement that is fair to both.
One of the main assets people want to protect with a prenuptial agreement is assets they brought into a relationship or assets they stand to inherit in the future. A prenuptial agreement can assist with clarifying whether those assets will form part of the matrimonial balance sheet or not.
Parties can also negotiate and waive spousal support in a prenuptial agreement, taking one more issue off the table in the event of a separation.
Alberta’s Family Property Act and Prenuptial Agreements for Common Law Partners
With the recent changes to Alberta’s Matrimonial Property Act, now renamed as the Family Property Act, common law partners (also called adult interdependent partners) in Alberta now come with significantly strengthened property rights for the common law spouse, similar to what married couples already receive. No longer does a common law spouse need to attempt to make a claim against their former partner’s property; that claim is now presumptive. Meaning if you are in a common law relationship in Alberta, your property is apt to be divided whether you are aware of it or not. The Family Property Act has made prenuptial agreements for common-law couples in Alberta even more important.
How Prenuptial Agreements are Beneficial for Divorce Proceedings
Another significant benefit of a prenuptial agreement is that it can significantly minimize the cost and complexity of divorce proceedings. Providing the contract is determined to be valid, it can be determinative in resolving many of the outstanding issues that require resolution before a divorce will be granted. Having a lawyer draft your prenuptial agreement is important in ensuring it will be found to be valid in the event of a separation.
How Kirk Montoute Dawson LLP Can Help With Your Prenuptial Agreement
If you have questions about prenuptial or cohabitation agreements, it is always recommended that you seek legal advice. At Kirk Montoute Dawson LLP, our family lawyers provide clear, personalized guidance to help you understand your rights and options. We work closely with you to draft agreements that protect your interests, address your unique circumstances, and provide peace of mind for both parties entering the marriage or cohabitation.
Author: Michael Ross