This article will address the most common questions regarding drafting and enforcement of domestic contracts in Canada. For more specific legal advice, please contact our firm, Bahmadi Law and we will be happy to assist you.
What is a Domestic Contract?
Domestic Contracts at their core are agreements between spouses that outline how various marital issues are resolved upon separation and divorce. Domestic Contracts can be separated into three general categories:
- Cohabitation Agreements;
- Marriage Contracts;
- Separation Agreements.
Each category has unique features that make it niche depending on your marital situation.
How are Marriage and Cohabitation Agreements different?
Although the issues that each agreement can deal with are essentially the same, married parties can enter into Marriage Agreements before or after the marriage while a couple cannot enter a Cohabitation Agreement after the marriage. However, in some cases if you decide to marry your Cohabitation Agreement can turn into a Marriage Agreement.
Cohabitation Agreements are intended for the parties who are involved in a relationship of some permanence (common law relationship) but have not or are not planning to wed. The rights and responsibilities of the parties that are in a common law relationship can be vastly different from the married couples, especially in regards to the property. In fact, these rights can affect the decision of whether to marry or stay in cohabitation. As this topic is quite technical, please consult with the family lawyer if you need more details.
What Issues Can Marriage and Cohabitation Agreements deal with?
Marriage and Cohabitation Agreements are very flexible. The issues that these agreements can deal with are:
- Ownership or Division of Property (this includes cars, residences, bank accounts, etc);
- Spousal Support (eligibility, payout or total release);
- The right to direct the education and moral training of their children (but not custody or access).
- Any other issues that you may have;
- There are, however, key issues which cannot be resolved in Marriage and Cohabitation Agreements:
- Child Support;
- Child Custody and Access;
- The right of possession of the matrimonial property;
- Agreement to dispose of or encumber an interest in a matrimonial home unless certain conditions are met.
What makes Domestic Contracts enforceable in Canada? I have a Marriage Contract/Cohabitation Agreement/Domestic Contract from another country, can it be enforced in Canada?
All Domestic Contracts must have the following features to make them enforceable in Canada. Firstly, the agreement must be made in writing. If your Domestic Contract is made in writing but is written in a language other then English, you may need to hire a certified translator to translate the document. Secondly, the agreement must contain signatures by the parties to the agreement (partners or spouses). If the agreement is signed only by one partner/spouse but not the other or if it’s unsigned, it will not be enforced by the Canadian courts as a Domestic Contract. Thirdly, the Agreement must be properly witnessed. This means that the agreement must contain a name and a signature of at least one (better two) witnesses who saw both parties signing the Agreement.
As long as your Domestic Agreement from another jurisdiction has these three features, it can be enforced in Canada. The most common example of this is Meher, which is a part of the Iranian marriage tradition. Since Meher contains the above key features, the Canadian Courts can enforce it under certain conditions.
What is a Separation Agreement?
Like the Marriage Contract and the Cohabitation Agreement, the Separation Agreement is an agreement between the spouses/common law couples that outlines how the parties wish to deal with every aspect of their marriage after separation. Of course, the Separation Agreement can be only entered after the parties separated.
Unlike the Marriage Contract/Cohabitation Agreement, there are no limits on the contents of the Separation Agreement. The parties can resolve any and all issues they have. Separation Agreement shares the same three requirements as all domestic contracts as described in section above. Another key feature of the Separation Agreement is that its terms can be turned into an enforceable Court Order after the Agreement is executed.
Do I need help of a lawyer to prepare/sign the Domestic Contract?
It is quite often that we are approached by individuals that want to sign a “simple” agreement. It is also quite often that their situation is not as simple as they perceive. As we explained in paragraphs above, Family Law Domestic Contract execution and enforcement can be very technical and nuanced. Certain situations may render your agreement unenforceable. In addition, Family Law matters are often intertwined with variety of other issues, like real estate or wills. A family lawyer can provide you with legal advice that can make a difference between entering an Agreement that can be enforced and having it declared null and void.
Lastly, the
family law
lawyer can prepare and sign a Certificate of Independent Legal Advice for his or her client (each spouse requires their own separate lawyer for this). It is usually in your interest to have your lawyer sign a certificate for you and for your spouse to have a lawyer who would review the agreement and sign their own certificate. Certificate of Independent Legal Advice ensures that each party signed the agreement without any undue influence by the other. If you ever have to enforce the Agreement, the Certificate will also show to the court that each party had a legal professional who represented their interests. In general, the Certificates make the Agreements more difficult to dispute, set aside or declare null and void.