Family Law Agreements in Alberta: Separation, Cohabitation, and Prenuptial Agreements
In Alberta, properly drafted family law agreements can provide clarity around property, support, and financial responsibilities, helping you plan for the future with confidence. Our team prepares customized agreements to meet your specific needs while minimizing the risk of future conflict. We offer consultations for individuals considering Separation Agreements, Cohabitation Agreements, Prenuptial Agreements, or Postnuptial Agreements.
Cohabitation Agreements
A Cohabitation Agreement is a legally binding contract between two Adult Independent Partners who have chosen not to marry. A Cohabitation Agreement sets out the parties’ rights and obligations in the event the relationship comes to an end, including the division of property acquired before and during their relationship. Cohabitation Agreements often deal with the issues of the parties’ assets prior to cohabitation, what happens to any joint property acquired by the parties, spousal support, and the recognition of adult or dependent children.
Prenuptial Agreements
A Prenuptial Agreement is a legally binding contract between two people who are planning to be married. The terms of a Prenuptial Agreement can vary according to the wishes of the parties but usually include the division of property upon the parties’ separation, and whether spousal support will be payable in the event of a marriage breakdown.
When people divorce without a Prenuptial Agreement in place, any property acquired during the marriage will be divided equally (50/50), including any increase in value of the assets either party owned prior to the marriage. If you have significant pre-marital assets, wish to maintain your pre-marital assets, and/or have children from a prior relationship, you should consider a Prenuptial Agreement. While this can be a sensitive subject for some people, having a Prenuptial Agreement in place prior to marriage can reduce uncertainty and conflict while protecting your interests in the event of separation and/or divorce.
Postnuptial Agreements
Postnuptial Agreements address many of the same issues as Prenuptial Agreements, except Postnuptial Agreements are signed after a marriage has taken place. Postnuptial Agreements can assist in resolving issues that were not addressed prior to a marriage, including the potential future division of family property and spousal support.
Separation Agreements
At the end of a marriage or an Adult Interdependent relationship, the parties may enter into an Agreement to settle various issues arising out of their relationship, including custody and decision-making, parenting time, child support, spousal support, and property division. These Agreements are sometimes referred to as Separation Agreements, or as Divorce, Property, and Support Agreements. To create a valid and enforceable Separation Agreement, the parties must exchange financial information with each other and receive independent legal advice to ensure they understand their rights and obligations with respect to the Agreement.
Free Consultation
Please contact us for a free consultation at: (403) 288-0009 or by email at murray@bodnaruklaw.com if you have questions about a Cohabitation Agreement, Prenuptial Agreement, Postnuptial Agreement, or Separation Agreement. We can discuss the various options available and advise you on how to negotiate an Agreement that best suits your needs.
Financial Disclosure
A mutual exchange of financial information (called financial disclosure) by the parties is required prior to the signing of any Family Law Agreement and prior to either party filing an application for child support, spousal support, adult interdependent partner support, or property division. The court requires full financial disclosure from both parties to understand the family’s financial situation and to make fair decisions.
Family Law Agreements and Court Orders for child support usually contain terms requiring the parties to exchange financial disclosure once every year for so long as child support is payable.
Financial disclosure usually requires the parties to exchange the following information:
- Income Tax Returns for the three most-recent taxation years;
- Notices of Assessment and Reassessment for the three most-recent taxation years;
- If an employee, a copy of the three most-recent statements of earnings from the employer;
- A recent statement of income, if income has been received from employment insurance, social assistance, a pension, workers compensation, disability payments, or dividends;
- If a party is a student, a statement indicating the total of student funding;
- If a party is self-employed in an unincorporated business, copies of every cheque issued to the business in the past six weeks, financial statements of the business for the past three taxation years, and a statement showing a breakdown of all salaries, wages, management fees, and benefits paid for the three most-recent taxation years;
- If a party is a partner in a partnership, confirmation of income and draws from the partnership for the three most-recent taxation years;
- If a party has a one percent (1%) or more interest in a private corporation, the financial statements of the corporation for the three most-recent taxation years, a statement showing a breakdown of all salaries, wages, management fees or other benefits for the three most-recent taxation years, and a record showing the shareholder’s loan transactions for the past 12 months;
- A detailed list of any special or extraordinary expenses claimed (Section 7 Expenses) where child support is an issue;
- If a party is a beneficiary under a trust, a copy of the trust agreement and copies of the trust’s three most-recent financial statements;
- Copies of all statements and cancelled cheques for all bank accounts held solely or jointly for the most-recent six months;
- Copies of credit card statements for the most-recent six months;
- A monthly budget of expenses (where spousal support or independent partner support is an issue);
- A sworn itemized list of income, assets, and liabilities;
- Copies of the most-recent statements for all RRSPs, pensions, term deposit certificates, guaranteed investment certificates, stock accounts, and other investments; and
- A list of exemptions claimed (where the action involves the division of family property). The Family Property Act includes four categories of exempt property that are not divisible between the parties upon separation or divorce. A claim for exempt property can include:
- property owned by one of the parties prior to the relationship;
- gifts and inheritances from third parties;
- proceeds of a settlement or judgment arising from a tort claim
(compensation for a wrongful or negligent act); and/or - proceeds of a life insurance policy.
A failure to provide full and complete financial disclosure can negatively impact the validity of any Agreement negotiated by the parties. If you have requested but not received the required financial disclosure from your current or ex-spouse/partner, a court can order your spouse/partner to provide you with their complete financial disclosure.
Free Consultation
If you have any questions or concerns about the financial disclosure provided to you or the financial disclosure you have been requested to provide to the other party, please contact us for a free consultation at: (403) 288-0009 or by email at murray@bodnaruklaw.com