How to protect assets going into marriage

[JackBurton]

Make sure she continues to work. If you can maintain both her home and yours, do it.

 

[mandrill]

See a lawyer, get a female one that has raked many men into the ground and gave big settlements to women. These will be the best lawyers in a divorce or to get the best divorce settlements.

The laws have changes in the last decade or two. I think these days it has to do with a lot with when you made the money, and which spouse contributed to the break up. I can tell you a story of a woman who met the guy coming out of a divorce. He was flat broke when they met. He had a career but he was at the lower rungs of his profession. She worked two jobs to put him through additional education for a specialization. This worked out well for them as he made a big salary and had a nice house. One day he was caught cheating.

She got the house, the country house. half his assets, half his salary till retirement and even half his pension when he will retire because when they started out they had nothing and she contributed greatly to his success and he was the one that caused the collapse of their marriage.

You have absolutely no f idea what you're talking about. Seriously.

 

[mandrill]

I have quit the hobby and I am now in a serious relationship with a woman I love, and am now considering getting engaged this summer or shortly after (serious, not trolling). I’m a pragmatic guy, and knowing what we all know about the family court system, I don’t want to get divorce raped if things go bad(especially in the first few years or so). I have $1M in an investment account that I want kept separate for me, that will still be there in the event of us divorcing. How do I go about this in the simplest, legally effective way (other than not getting married)? Also, my parents are elderly and I may be getting an inheritance during this time, not sure if she can go after that and I should be concerned ? Thanks brothers.

The "answers" are getting worse and worse as the thread continues. Call a real lawyer. The Law Society's phone # is 416-947-3400. Or maybe 3300. You'll get a half-hour of free, qualified advice.

 

[MattyMcG92]

I have quit the hobby and I am now in a serious relationship with a woman I love, and am now considering getting engaged this summer or shortly after (serious, not trolling). I’m a pragmatic guy, and knowing what we all know about the family court system, I don’t want to get divorce raped if things go bad(especially in the first few years or so). I have $1M in an investment account that I want kept separate for me, that will still be there in the event of us divorcing. How do I go about this in the simplest, legally effective way (other than not getting married)? Also, my parents are elderly and I may be getting an inheritance during this time, not sure if she can go after that and I should be concerned ? Thanks brothers.

Hi Desert Monk,

Congrats on falling in love!

Assuming the inheritance occurs after the marriage date, the Ontario Family Law Act stipulates that property acquired by gift or inheritance from someone other than the person's spouse (such as your parents) during the marriage is not shared matrimonial property. So when you receive gifts or inheritance, put the proceeds in a solely owned investment account (not joint with your spouse in which case both parties are entitled to it) and the money in that account, including all the future gains, are yours only. I recommend to clients that they do not mix investment accounts funded by gifts and inheritance with investment accounts they funded themselves.

Where I have seen clients get burned is when they invest a gift or inheritance into a matrimonial home (a home where both spouses reside). In that case, the spouses generally share the gift or inheritance paid into the home if and when they separate.

With respect to your $1 million investment account, generally, the gains from the appreciation of your assets and money contributed to the account during your marriage will be split equally (50/50) but the fair market value of the account immediately prior to the marriage date remains yours.

If you want the gains from your $1 million investment funds to remain solely yours, your spouse would have to agree to it in a marriage contract. Remember that you need to fully disclose your assets and be honest in the negotiations with your future spouse or she may try to invalidate the agreement at a later date. Also, although there is no legal requirement to do so, it is important that she have independent legal advice prior to signing the agreement. It protects her interests and also your own. It weakens her ability to later contest the marriage contract with excuses such as "I did not know what I was signing" or "I had no idea I was giving up my property rights".

Included with the marriage contract is usually an affidavit each party signs that they reviewed the contract with a lawyer. I even recommend to my clients that they pay the legal costs for their future spouse to review the contract with a lawyer of the spouse's choosing and keep the invoice.

As a disclaimer, I am an expert in financial planning, taxation, wills, estates and trusts from both an accounting and legal perspective. I do not practice family law, but there is some overlap with the areas I do practice.

Hope this helps.

Matt

 

[oil&gas]

Included with the marriage contract is usually an affidavit each party signs that they reviewed the contract with a lawyer. I even recommend to my clients that they pay the legal costs for their future spouse to review the contract with a lawyer of the spouse's choosing and keep the invoice.

Never knew, aside from a prenuptial agreement, there
is other arrangement for one to prepare for a future
divorce. Sounds bizarre.

 

[Ceiling Cat]

You have absolutely no f idea what you're talking about. Seriously.

Babs,would you care to elaborate?

 

[superstar_88]

You must be mentally retarded to even think of getting married.

Name one positive thing about getting married please

This is profound

 

[NotADcotor]

I thought if you moved in with someone you can arrange a prenup/cohab to protect all your stuff. About the only thing you can't do is, if you boot someone out and they have nothing, you might be required to support them for 6 months with the expectations they will get a job.

I never managed to confirm the following.
Does having an agreement in place prevent her from taking half of your house that you bought and pay all the expenses for.
Can you separate your finances so that you not only keep the base amount but all them gains.

While I am asking can you protect yourself if you are married vs common law.

Assuming of course you are up front with all your assets, inheritances and she has a lawyer.

I don't have a lot of excess wealth to be giving it away to someone if it doesn't work out.
I don't have kids. I don't want kids. I will never move in with someone who has kids. I would find it beyond aggravating if I couldn't do up an agreement where if the relationship ends, I walk away with mine and she walks away with hers like two sovereign people.

I am thinking of one girl who has no kids and is post menopausal. However I'd hazard a guess that her financial situation is pretty bleak. If she was to move in I could barely manage but if the relationship tanks [most likely because of her] like fuck if I want to support her ass.

 

[jazzbox]

if you are concerned about protecting your assets then don't get married. From a legal perspective, once you're married, she has access to your assets once you are divorced. You can write a prenup but, ultimately, you cannot write a contract that contradicts a legal statute thus they are largely useless. Frankly, if this is you main concern you need to give some seriously thought to why you are wanting to get married. Sounds like it is doomed from the get-go.

 

[MattyMcG92]

Never knew, aside from a prenuptial agreement, there
is other arrangement for one to prepare for a future
divorce. Sounds bizarre.

Hi Oil&Gas,

In Canada, the term marriage contract is an agreement signed before or after a wedding. But you are correct, in most common law countries the term "prenuptial agreement" would be the proper term used for marriage contracts done prior to the wedding.

Matt

 

[doggyorcg]

if you are concerned about protecting your assets then don't get married. From a legal perspective, once you're married, she has access to your assets once you are divorced. You can write a prenup but, ultimately, you cannot write a contract that contradicts a legal statute thus they are largely useless. Frankly, if this is you main concern you need to give some seriously thought to why you are wanting to get married. Sounds like it is doomed from the get-go.

All these shop floor lawyers telling @desert monk, "if you are concerned about protecting your assets, don't get married", makes me yawn. Have these guys not heard of no-fault divorce. Gone are the days when a real reason was required to get a divorce and divorce was mercilessly shamed by family, the Church, and society. Any guy that isn't aware of the risks of divorce is an idiot. I don't care how madly in love the guy is and how low her notch count is purported to be, this is reality. This isn't the pre-1960's.

@desert monk didn't save $1MM in investments (net of debt) by gambling at the Woodbine Racetrack. He had discipline. And good on him for posing this question to the board. He will get unvarnished advice here.

 

[doggyorcg]

I think the best bet is to find a girl much younger than you. Marry her, bang her every day, pump out a couple kids, and do your best to keep some assets hidden - for your children's future. (Women are most susceptible to impulse or compulsive shopping. Look it up.) Eventually, when you are 70 and she is 55, you will be tired of baning her. And likely your plumbing will be too tired anyways. So it doesn't matter if she divorces you by then. She will have to support your tired old ass with alimony. You're welcome!

Those who fail, fail to plan.

 

[Ginomore]

I think the best bet is to find a girl much younger than you. Marry her, bang her every day, pump out a couple kids, and do your best to keep some assets hidden - for your children's future. (Women are most susceptible to impulse or compulsive shopping. Look it up.) Eventually, when you are 70 and she is 55, you will be tired of baning her. And likely your plumbing will be too tired anyways. So it doesn't matter if she divorces you by then. She will have to support your tired old ass with alimony. You're welcome!

Those who fail, fail to plan.

You call that a plan?
She will divorce your ass after 10 years and take half your stuff and get spousal support and child support.
And you get to work your ass off for the rest of your life and save very little for yourself.

 

[doggyorcg]

You call that a plan?
She will divorce your ass after 10 years and take half your stuff and get spousal support and child support.
And you get to work your ass off for the rest of your life and save very little for yourself.

I'll be 70+ when it all goes down. She will still be working. I will be retired and getting the spousal support. The tables will be turned. Now that's sssswwweeeet!

 

[doggyorcg]

Basically, a woman will only divorce a guy if she "thinks" her life will be better after the divorce. All you have to do is convince her that it is worth more for her to stay than leave.

Prior to the 1960's it was a no brainer that her life would be worse after a divorce. Now the wife needs to learn - just like all those single mother leppers on Tinder/Match/eHarmony/POF, that being a single mother is not how it looks on Instagram, Netflix or Oprah. Single mothers - whether getting decent alimony or not - are the most depressed segment of adulthood. I am sure a lot of single mothers - years later - majorly regret divorcing their husband. Remember, most divorces are initiated by the wife.

 

[Leimonis]

Basically, a woman will only divorce a guy if she "thinks" her life will be better after the divorce. All you have to do is convince her that it is worth more for her to stay than leave.

Prior to the 1960's it was a no brainer that her life would be worse after a divorce. Now the wife needs to learn - just like all those single mother leppers on Tinder/Match/eHarmony/POF, that being a single mother is not how it looks on Instagram, Netflix or Oprah. Single mothers - whether getting decent alimony or not - are the most depressed segment of adulthood. I am sure a lot of single mothers - years later - majorly regret divorcing their husband. Remember, most divorces are initiated by the wife.

would you want to stay with a woman who contemplates divorcing you to live a better life?

 

[doggyorcg]

would you want to stay with a woman who contemplates divorcing you to live a better life?

The question is why is she contemplating a better life? Our brain can't help imagining alternative realities; especially when bombarded with alternative external images/scenarios.

The problem is most women are misinformed about what life will be like after divorce. And for all you feminist snowflakes out there, I say women because they are the ones that initiate divorce more than 2/3's the time.

 

[superstar_88]

So the dream of a wife warming up my soft foods and changing my diapers in my senior years I should forget about it?

 

[NotADcotor]

Now the wife needs to learn - just like all those single mother leppers on Tinder/Match/eHarmony/POF, that being a single mother is not how it looks on Instagram, Netflix or Oprah. Single mothers - whether getting decent alimony or not - are the most depressed segment of adulthood.

I don't think I've ever known a single mother who had any problems getting another guy. At least not the younger ones. Plenty of dudes don't care much.

 

[curvluvr]

Hi Desert Monk,

Congrats on falling in love!

Assuming the inheritance occurs after the marriage date, the Ontario Family Law Act stipulates that property acquired by gift or inheritance from someone other than the person's spouse (such as your parents) during the marriage is not shared matrimonial property. So when you receive gifts or inheritance, put the proceeds in a solely owned investment account (not joint with your spouse in which case both parties are entitled to it) and the money in that account, including all the future gains, are yours only. I recommend to clients that they do not mix investment accounts funded by gifts and inheritance with investment accounts they funded themselves.

Where I have seen clients get burned is when they invest a gift or inheritance into a matrimonial home (a home where both spouses reside). In that case, the spouses generally share the gift or inheritance paid into the home if and when they separate.

With respect to your $1 million investment account, generally, the gains from the appreciation of your assets and money contributed to the account during your marriage will be split equally (50/50) but the fair market value of the account immediately prior to the marriage date remains yours.

If you want the gains from your $1 million investment funds to remain solely yours, your spouse would have to agree to it in a marriage contract. Remember that you need to fully disclose your assets and be honest in the negotiations with your future spouse or she may try to invalidate the agreement at a later date. Also, although there is no legal requirement to do so, it is important that she have independent legal advice prior to signing the agreement. It protects her interests and also your own. It weakens her ability to later contest the marriage contract with excuses such as "I did not know what I was signing" or "I had no idea I was giving up my property rights".

Included with the marriage contract is usually an affidavit each party signs that they reviewed the contract with a lawyer. I even recommend to my clients that they pay the legal costs for their future spouse to review the contract with a lawyer of the spouse's choosing and keep the invoice.

As a disclaimer, I am an expert in financial planning, taxation, wills, estates and trusts from both an accounting and legal perspective. I do not practice family law, but there is some overlap with the areas I do practice.

Hope this helps.

Matt

Usually, free advice is the worst advice you can receive...
But this is great! Thanks for sharing Matty!