U.S. popstar Hillary Duff and Canadian NHL player Mike Comrie were married last week in a ceremony that took place in California. In 2007, Forbes magazine estimated Duff’s earnings for the year at $12 million, and not only did Comrie make an NHL paycheck (he’s a free agent this year), his father is the co-founder of The Brick and his family’s fortune is an estimated $500 million. It has been reported that prior to their marriage, the couple signed a prenuptial agreement (known as a ‘marriage contract’ in Canada).
Some view a marriage contract as an “easy out” if a couple were to divorce, and that if two people were really in love they would not need a marriage contract. Contrary to this belief, few couples enter marriage thinking divorce is inevitable. Most couples who say, “’til death do us part,” mean it, never intending to become part of the 38 per cent divorce rate in Canada.
Divorce may be unplanned but it does occur. Therefore, couples should protect themselves, their finances and their assets by entering into a marriage contract. Initiating discussions about a marriage contract may be difficult however it is beneficial to a couple in the event of something unforeseen. A marriage contract is similar to buying life or car insurance, neither means that one intends to die or become injured, but it can protect you should it occur.
Marriage contracts are not just for the wealthy, there are many reasons to enter into such an agreement. Those who sign marriage contracts include couples marrying for a second time or are older couples marrying for the first time in life, both of which usually have built up assets to protect and may have children from previous relationships for whom they would want to preserve those assets.
Similar to the marriage contract for married couples, common-law couples can also protect themselves and enter into a cohabitation agreement.