What is a Post-Nuptial Agreement?

This is the first time I’ve heard of this…

Having worked in the financial service industry for 39 years, I thought I had seen most things. However, this year I was surprised when I came across a client file that had a post-nuptial agreement.

It sounded similar to a prenuptial agreement, but I quickly discovered it was something different. I did some research and thought I would share what I learned in case you haven’t heard the term either...

In Alberta, a Post-nuptial agreement is a legally binding contract created after marriage to define the division of assets, debts, and spousal support. 

This is different from a pre-nuptial, which is signed before marriage, to define how property, debt, and spousal support are handled upon separation or death.

What is the purpose of a Post-Nuptial Agreement?

To protect assets (inheritances, businesses), clarify financial responsibilities, or address changes in financial circumstances during marriage.

It may govern property division upon separation or death, distinguishing between shared assets and separate property.  

Why People Arrange Post-Nuptial Agreements:

• Protecting assets from a previous marriage

• Protecting one spouse from another’s newly acquired debt

• Protecting an inheritance received during the marriage

• Missing a Prenuptial (had intentions to sign prior to marriage)

• Negotiating the separation prior to meeting the living apart requirement, which is 12 months. 

*It does not cover Child Custody and Support.

To be enforceable under the Family Property Act, it must be in writing, signed, include full financial disclosure (including assets, debts, and income) and Independent Legal Advice for both parties with different lawyers.

The biggest question is now, “Do you need one?” Honestly, I’m not entirely sure. 

I also discovered that there are now lawyers who specialize in these types of agreements. Many spouses share more debt and assets than previously, and dividing those equally (or in a somewhat organized manner) upon separation or divorce makes a lot of sense.

I would say that if you’re considering a separation or just want to have a formalized agreement for splitting assets, reaching out to a lawyer who specializes in this field to understand your options is the first step. 

If you have any questions, please feel free to reach out. Always happy to discuss the latest in the mortgage world.