Explaining the Prenup: What it is, and why Kanye told you to get one
Our founder, Marcus Sixta, was recently interviewed by the Daily Hive to explain to people the importance of creating a prenuptial agreement, not only when you are getting married, but also for couples who have lived together for two years.
“If your marriage ends in divorce, all property, assets, and debts, that have been accumulated will be divided 50/50” Sixta warns. “Of course, there are some exceptions like inheritances and gifts from third parties. But even with these exceptions, the increase in value from the date the asset is received can be divided between the spouses. And if you had a property or asset before marriage, any increase in value at the date of divorce is also up for division.”
Sixta says that only a prenuptial agreement can change these rules.
Crossroads Law deals with a lot of people in common-law relationships who are worried about what could happen in the case of separation. “In BC, changes to the Family Law Act in 2013 led to common-law couples being treated the same as married couples when it comes to the division of property and assets after separation. Also, common-law is usually two years, so right now, if you’ve been living with your partner for two years your assets and debts are treated the same as a married couple.”
However, the situation for common-law couples appears to be more complicated in Alberta.
“In Alberta, there’s no easy way to sort out how property is divided between separated common-law couples. Unlike BC, Alberta has no legislation that gives lawmakers clear rules on how to do this. So in the event of separation, common-law couples divide their property using complicated legal precedents from past cases. Basically, it can get very expensive and confusing.”
Sixta advises that a cohabitation agreement for common-law couples can help prevent these costs and issues.