Off Topic Archive

Locked: Protecting assets earned prior to marriage

  • Last Updated:
  • Jun 29th, 2008 10:53 pm
Tags:
None
[OP]
Newbie
May 12, 2008
79 posts
Ottawa

Protecting assets earned prior to marriage

For a young adult who has lots of money before marrige, is that money safe in case of divorce? I understand that everything earned during marrige is split up, but I would assume that the man can keep his money earned before marrige and the woman keeps hers, and that this money does not get split. Would this be correct? Or is the only way to keep this money safe by giving it to, for example one's mother (unless you wanna go through prenup, though I hear that's not 100% safe either lol).



PS: I'd appreciate if people don't thread-crap. Please keep on topic. I realize that marriage is about trust, but fact is that everyone thinks they are going to get married for the long run, and a whole lot of people end up getting divorces. So, unless you yourself have been married for 50 years, please don't lecture about how one shouldn't be in a marriage if they need to worry about this stuff.
Share:
13 replies
Deal Addict
Dec 10, 2007
1863 posts
2 upvotes
Get a prenup?
[OP]
Newbie
May 12, 2008
79 posts
Ottawa
Yeah but I'm wondering if one is even necessary, given that you've earned the money before marrige...
Deal Addict
User avatar
Aug 12, 2007
1823 posts
1 upvote
JoHerbe wrote:
Jun 29th, 2008 12:05 am
Yeah but I'm wondering if one is even necessary, given that you've earned the money before marrige...
If you're concerned about this, then you need to work out a prenuptial agreement with your fiancee, before getting married. If you are married and then divorce, you will be splitting your assets down the middle, unless the other party agrees differently. This includes assets earned before marriage.

I prenup will specify exactly what each person would take out of the marriage ahead of time.
Member
Sep 20, 2006
235 posts
1 upvote
Having kids though could render your prenup invalid. So watch out for that.

Otherwise, a prenup draft up by lawyers should do the trick. Make sure each party gets independent legal advice.
Deal Addict
Nov 18, 2005
2672 posts
7 upvotes
yeah if no prenup, the woman gets a divorce, things get rough, and she will make sure she gets 50/50 of your assets
Deal Addict
Sep 8, 2004
2197 posts
You really need to consult a lawyer for this.

Just keep your money under your own name and not in the joint account, and have a prenup.

If the money isnt actually yours yet, but will be in form of inheritance, then you need the current owner of the asset to sign a form witnessed making the asset (house, money whatever) a gift to you and only you.
Banned
User avatar
May 5, 2005
13286 posts
8 upvotes
Toronto, Canada
I'm surprised no one has counseled for him to avoid marriage altogether. That's the only safe bet.

On another note: do common laws fall under the same law? I heard common-laws are considered pretty much like a marriage after some odd years. How would the split be in terms of assets divided or does that rest upon how talented their attorney are?
Joe Zawinul
1932 - 2007
Deal Addict
Dec 8, 2006
1052 posts
4 upvotes
Emancipated wrote:
Jun 29th, 2008 7:00 am
I'm surprised no one has counseled for him to avoid marriage altogether. That's the only safe bet.

On another note: do common laws fall under the same law? I heard common-laws are considered pretty much like a marriage after some odd years. How would the split be in terms of assets divided or does that rest upon how talented their attorney are?
after 3 years I think it's considered common law and thus they would be entitled say you owned a house pension, RRSP etc.

I guess the safest bet would be hte put the money in someone else's name like your parents
Member
Sep 20, 2006
235 posts
1 upvote
dairymandip wrote:
Jun 29th, 2008 7:27 am
after 3 years I think it's considered common law and thus they would be entitled say you owned a house pension, RRSP etc.

I guess the safest bet would be hte put the money in someone else's name like your parents
I thought the law has somewhat changed on this issue after gay marriage became legal. This is because the court now sees that everyone can legally get married, hence, common law couples are no longer presumed to be married, unless they are actually married. I read this court case a while back...sorry, don't remember the name of the case though - I will have to look for it.

ETA:

In the meantime, from Wikipedia:


In Ontario, the Ontario Family Law Act specifically recognizes common-law spouses in sec. 29, dealing with spousal support issues; the requirements are living together for no less than three years [3] or having a child in common and having "cohabitated in a relationship of some permanence". The three years must be continuous; however a breakup of a few days during the period will not affect a person's status as common law. However, the part that deals with marital property excludes common-law spouses, as sec. 2 defines spouses as those who are married together or who entered into a void or voidable marriage in good faith. Thus common-law partners do not always evenly divide property in a breakup, and the courts have to look to concepts such as the constructive or resulting trust to divide property in an equitable manner between partners. Another difference that distinguishes common-law spouses from married partners is that a common-law partner can be compelled to testify against his or her partner in a court of law.
Deal Expert
User avatar
Nov 27, 2006
16130 posts
357 upvotes
Etobicoke
Shortly put, only the value of assets accumulated from the date of marriage to the date of separation are considered net family property subject to division upon a divorce, subject to certain exceptions. Anything you had before the date of marriage is yours, anything she had before the date of marriage are hers. However, I stongly urge you to see a lawyer because, though it sounds easy, once you start mixing monies or assets earned prior to marriage with assets earned after marriage, you can get into some sticky situations. You don't really need a pre-nup, you just need to know how to be able to deduct from net family property the value of everything you owned prior to marriage.

Now that I've posted in this thread, I'm sure RenegadeX will do everything he can to prove me wrong , which will include a few hours research and an essay (which I thankfully will miss) that will give you the details I can now skip, like the exceptions, special treatment of things like inheritances, matrimonial home, etc. :) Go for it Renegade, personally I'll be enjoying my Sunday outside ;) .
Avril Lavigne Black Star Parfum & Cineplex Night out for Two $126, Leapster Gaming System worth $59.99 US; Trip to Cuba ARV $2000; Cineplex Movie ticket (iCoke/Nestea contest)$10; Palaria Clothing Hoody $69;Joe Fresh GC $25; 4 tics for Ted Nugent Concert; Joe Fresh Make-up Kit $50.00; $25 Bath & Body Works GC (Fresh Fiction contest for DiAnn Mills); $1000 in TD Exlusive Offers contest; $100 necklace from an on-the-spot draw while shopping at Sears
Deal Addict
User avatar
Nov 5, 2005
3072 posts
96 upvotes
Mississauga
Emancipated wrote:
Jun 29th, 2008 7:00 am
I'm surprised no one has counseled for him to avoid marriage altogether. That's the only safe bet.

On another note: do common laws fall under the same law? I heard common-laws are considered pretty much like a marriage after some odd years. How would the split be in terms of assets divided or does that rest upon how talented their attorney are?
Yeah that is what I'm thinking too. Why get married if you have doubts. Just keep being girlfriend/boyfriend and if you're living together, file as roommates. I don't know the legalities about marriage and separation but if you have doubt, better not jump into it. The bottom line is, marriage for me is something you have to be 100% sure of. Of course, it may go sour but at least be 100% before jumping the gun.
Deal Fanatic
User avatar
Oct 10, 2006
7741 posts
79 upvotes
Georgetown
Nikita wrote:
Jun 29th, 2008 9:14 am

Now that I've posted in this thread, I'm sure RenegadeX will do everything he can to prove me wrong , which will include a few hours research and an essay (which I thankfully will miss) that will give you the details I can now skip, like the exceptions, special treatment of things like inheritances, matrimonial home, etc. :) Go for it Renegade, personally I'll be enjoying my Sunday outside ;) .
Image
See this button :confused: :confused: Learn how to use it PLEASE ;)
[OP]
Newbie
May 12, 2008
79 posts
Ottawa
Shortly put, only the value of assets accumulated from the date of marriage to the date of separation are considered net family property subject to division upon a divorce, subject to certain exceptions. Anything you had before the date of marriage is yours, anything she had before the date of marriage are hers. However, I stongly urge you to see a lawyer because, though it sounds easy, once you start mixing monies or assets earned prior to marriage with assets earned after marriage, you can get into some sticky situations. You don't really need a pre-nup, you just need to know how to be able to deduct from net family property the value of everything you owned prior to marriage.

Now that I've posted in this thread, I'm sure RenegadeX will do everything he can to prove me wrong , which will include a few hours research and an essay (which I thankfully will miss) that will give you the details I can now skip, like the exceptions, special treatment of things like inheritances, matrimonial home, etc. Go for it Renegade, personally I'll be enjoying my Sunday outside .
That sounds reasonable. I bet it gets kind of twisted though when you start buying a house.

1. How does it work if you buy a house?
2. Say your large sum is in a Stock Brokerage account, making you money. The money was 100% yours, however it is accumulating value during the marrige. Is the extra value earned during marrige shared?

I'm not even close to any marrige. I'm just curious. But the reality is that I'll have to support my mom later in life. She has serious health problems and is barely able to work, but disability is only like $500 so she refuses that becuase there's no way to live off that if you have one dependant. But sooner or later, it'll mean that she's hurting herself in the long run so I'll have to support her.
× < >

Top