Prenuptial Agreements for Couples Getting Married Later in Life

Why Older Couples in Ontario Should Consider a Prenuptial Agreement

Marriage later in life is becoming increasingly common in Ontario, whether due to remarriage after divorce or the choice to settle down at a more mature age. With this shift comes a new set of financial and personal considerations. Unlike younger couples who may be starting from scratch together, older partners often enter marriage with significant assets, established careers, and family responsibilities. A prenuptial agreement (sometimes referred to as a marriage contract under Ontario’s Family Law Act) can be an essential tool for clarity and protection.

Growing Trend of Remarriage and Late-Life Unions

Statistics in Ontario reflect a steady rise in later-life marriages and remarriages. With more mature relationships, couples frequently bring unique financial situations to the table, including pensions, investments, property ownership, and inheritances. A prenuptial agreement allows them to outline how these assets will be treated should the relationship end.

Importance of Protecting Wealth Accumulated Before Marriage

By midlife or later, many Ontarians have already built considerable wealth—whether in the form of a family home, retirement savings, or a business. Under Ontario family law, certain property may be subject to equalization if a marriage breaks down. A well-drafted prenuptial agreement ensures that wealth accumulated before the marriage, or assets earmarked for children from a previous relationship, remain protected.

Ensuring Fairness While Respecting Each Partner’s Financial Independence

Later-life couples are often committed to maintaining financial independence. A prenuptial agreement helps clarify expectations around household expenses, spousal support, and division of assets, while respecting each partner’s autonomy. In Ontario, courts require that such agreements be entered into voluntarily, with full financial disclosure and independent legal advice.

For older couples marrying in Ontario, a prenuptial agreement is more than just a legal formality—it is a proactive step in building a stable foundation for the future. It allows partners to protect what they have worked hard to build, honour commitments to children or family members, and enter the marriage with mutual trust and transparency.

Protecting Estates and Inheritance for Adult Children

For many couples marrying later in life in Ontario, one of the most important reasons to consider a prenuptial agreement is the protection of estates and inheritances. With adult children often already established from previous relationships, it is essential to ensure that family assets are safeguarded and passed on according to each partner’s wishes.

Safeguarding Family Property, Cottages, or Heirlooms

Ontario families often have significant assets such as cottages, farmland, or heirloom property that have been passed down for generations. Without clear legal protections, these assets could become subject to division under Ontario’s family property equalization rules in the event of separation or divorce. A prenuptial agreement can specify that such property remains excluded from equalization, ensuring it stays within the family line.

Ensuring Adult Children from Previous Relationships Are Not Excluded

Older couples frequently want to provide for their new spouse while also protecting their children from previous marriages. A prenuptial agreement can outline how certain assets will be preserved for children, preventing unintentional disinheritance.

Coordinating Prenups with Wills, Trusts, and Estate Planning

A prenuptial agreement should not stand alone; it should be coordinated with wills, trusts, and overall estate planning. In Ontario, even if a will leaves property to children, the surviving spouse may have rights under the Family Law Act unless there is a valid marriage contract in place. By aligning a prenuptial agreement with estate planning documents, couples can ensure that their intentions are legally enforceable and that wealth is transferred seamlessly to the next generation.

For mature couples entering marriage, a well-crafted prenuptial agreement provides peace of mind by balancing the needs of the new partnership with longstanding family obligations.

Managing Pensions, Retirement Funds, and Investments

For couples getting married later in life, pensions and retirement savings are often among their most valuable assets. In Ontario, a prenuptial agreement (or marriage contract) can help clarify how these funds will be treated, reducing uncertainty and preventing conflict down the road.

Division of Pensions and Retirement Savings Under Ontario Law

Under the Family Law Act, pensions and other retirement savings are generally included in the calculation of family property for equalization purposes when a marriage ends. This means that without an agreement, a portion of one partner’s pension or savings could be owed to the other. By addressing pensions in a prenuptial agreement, couples can decide in advance whether to exclude certain retirement assets from equalization, ensuring they remain in the control of the original contributor.

Clarifying Rights to RRSPs, RRIFs, and Workplace Pensions

Many Ontarians entering marriage later in life already hold significant Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), or workplace pensions. These accounts can be complex, with tax implications and survivor benefits that need careful planning. A prenuptial agreement can specify how these accounts will be divided—or preserved—in the event of separation or death. This ensures both partners understand their rights and obligations, and helps avoid unexpected surprises.

Preventing Unintended Financial Strain on One Partner After Separation or Death

Later-life marriages often involve financial interdependence. If pensions or retirement funds are not clearly addressed, one partner could face serious financial hardship following a separation or the death of their spouse. A prenuptial agreement allows couples to protect retirement security, ensuring that each partner maintains stability while still respecting obligations to family members, such as children or dependants from previous relationships.

Addressing Property and Real Estate Ownership

Real estate is often one of the most significant assets for couples entering marriage later in life. Whether it is the primary residence, a vacation home, or investment property, ownership rights and obligations need to be carefully defined in a prenuptial agreement to avoid disputes and protect long-term financial security.

Protecting the Matrimonial Home in Ontario

Under Ontario’s Family Law Act, the matrimonial home has special legal protections. Regardless of whose name is on the title, both spouses have an equal right to possession of the home during the marriage. This means that one spouse cannot simply sell or mortgage the property without the other’s consent. However, a prenuptial agreement can set out how the matrimonial home will be treated upon separation, including whether the value will be shared or excluded from equalization. This is especially important when one partner already owned the home before the marriage.

Handling Vacation Homes, Investment Properties, or Rental Income

Later-life couples may also own cottages, vacation properties, or real estate investments. These assets can generate rental income or appreciate in value significantly over time. A prenuptial agreement can clarify whether these properties are to remain separate, how rental income will be managed, and what happens to the value of the property if the marriage ends.

Options for Keeping Pre-Marital Property Separate

Many older Ontarians wish to keep the property they owned before marriage separate from joint family property. A prenuptial agreement provides a legally recognized way to do this. Couples can agree that certain homes or properties will not be subject to division, ensuring that long-held assets—such as family cottages or residences purchased long before the marriage—remain with the original owner.

Special Considerations for Retirees and Second Marriages

Later-life marriages often involve more complex financial and personal circumstances than first marriages at a younger age. For retirees and those entering second or subsequent marriages in Ontario, a prenuptial agreement can provide essential clarity and reduce the risk of conflict between spouses, children, and extended family.

Impact on Estate Administration and Probate

When a spouse passes away in Ontario, their estate may be subject to probate, which can delay asset distribution and increase costs. Without a prenuptial agreement, the surviving spouse may also have statutory rights to claim an equalization payment or spousal share, even if a will directs assets elsewhere. A marriage contract can limit or waive these rights, ensuring that estate administration proceeds smoothly and assets are distributed according to the deceased spouse’s wishes.

Protecting Healthcare Decisions and Long-Term Care Planning

Later in life, healthcare decisions and long-term care planning become increasingly important. While these issues are not always directly covered in a prenuptial agreement, a contract can complement related documents such as powers of attorney and healthcare directives. Couples can use their agreement to clarify financial responsibilities for medical care or long-term housing, ensuring that one spouse is not left solely responsible for overwhelming costs.