Avoid These Marriage Agreement Mistakes – Learn from our senior high net worth Calgary and Vancouver family lawyers about how to avoid 6 common and potentially catastrophic mistakes when negotiating a Vancouver marriage agreement or a Calgary marriage agreement. If you are fortunate enough to have acquired wealth through taking risks and hard work you are likely smart enough to want a marriage agreement that mandates a separate property regime during the marriage and upon its breakdown including protecting gains on your hard-won assets PLUS protection against claims of spousal support. You want to be fair but you also want wealth protection.
Lorne MacLean, QC is rated as one of the top* three family lawyers in Vancouver and Surrey and his law firm, MacLean Family Law, has consistently won Best Vancouver Law firm 5 times in the past 6 years. Recently, he set a record Western Canadian spousal and child support award of over $83,000 a month in D v. D. This record award was then surpassed by MacLean’s win on the trial of the same action where support was increased to $116,000 a month.
Individuals of substantial net worth are wise to ensure a properly negotiated and comprehensive marriage agreement is entered into well before they marry for the first time and even more so if they are remarrying. Lorne MacLean, QC knows you want the marriage agreement to stand the test of time. To ensure this happens, you want to avoid the common mistakes that lead to these marriage agreements being set aside entirely or varied in part. Good preparation and a solid plan for a fairly negotiated Vancouver marriage agreement or Calgary marriage agreement can go a long way to saving your millions down the road.
Avoid These Marriage Agreement Mistakes Call 1 877 602 9900
- FAILING TO MAKE YOUR OWN DISCLOSURE -Failing to make your own full and fair financial disclosure is the # 1 ground for agreements being set aside by courts. It is imperative that you provide full financial disclosure of all your personal and corporate holdings and investments, pensions, and family trust property. Professional valuations of businesses, details of the valuation method, and any recent offers for your business are all required to be disclosed. For family trusts that you or your future spouse have discretionary interests in or that were set up by one of the spouses, make sure to get the trust deed, tax returns, financials, history of income and capital distributions, the age of the trust and degree of control the spouse has in the trust. Try to obtain a latent tax calculation for any pregnant taxes or risks that might come due down the road. Remember to attach ALL the financials, professional valuations, investment accounts, trust documents, and the like to the marriage agreement.
- WAIVING DISCLOSURE OR SAYING THE PARTIES HAVE A GENERAL KNOWLEDGE OF EACH OTHERS’ FINANCES – If anyone approaches Lorne MacLean, QC asking him to be part of this foolhardy approach they learn quickly that he will not let them be so foolish. Do not put a common and dangerous wording into the preamble of any marriage agreement that ” the parties have each made financial disclosure” unless full and proper disclosure backed up by source documents and professional valuations have been obtained. Calgary marriage agreements, in particular, have been found to be enforceable with only general disclosure which is obviously a huge problem for the financially weaker spouse. Don’t fall into this trap.
- STARTING TO NEGOTIATE BEFORE OBTAINING FULL FINANCIAL DISCLOSURE – MacLean recommends that you insist on obtaining full and detailed financial disclosure BEFORE negotiations start on any marriage agreement.
- FAILING TO INVESTIGATE FAMILY WEALTH – Future spouses may have entitlements to family property or family companies that one spouse inadvertently fails to investigate and properly disclose. MacLean says “only disclose the property you don’t want your spouse to get half of” which quickly brings a focus to the importance of listing ALL property and debts.
- FAILING TO OBTAIN NET WORTH STATEMENTS AND LOAN APPLICATIONS TO BANKS AND LENDERS – these applications may well list new income sources and higher than disclosed income amounts as well as property that was not disclosed. Conversely, in cases where the gain is excluded (BC) or exempt (CALGARY) be careful that someone has not inflated the starting value of the property or minimized family debt to try to create a greater exclusion than they are really entitled to. Remember, there is a difference between blindly accepting disclosure and properly analyzing and critiquing it with the help of a top* family lawyer.
- PROCRASTINATING UNTIL DAYS BEFORE THE WEDDING – We know having these discussions is hard but nothing makes an agreement more suspect than rushed, last-minute, pressure-filled negotiations where people are distracted, upset and not thinking clearly. Negotiate and make and obtain full disclosure at least 6 months to a year before the big day. MacLean also recommends a brief videotaped deposition at the time of the signing of a high stakes Vancouver or Calgary marriage agreement where each future spouse is asked under oath if the agreement is fair and provides for their needs now and in the future and where each spouse is asked to confirm that they are signing the agreement of their own free will in calm and friendly circumstances.
To learn more about negotiating a fair marriage agreement and to get more insight on how to avoid these marriage agreement mistakes, pick up the phone or click here to set up an appointment across BC and in Calgary.
Hiring a seasoned and successful high net worth family lawyer like Lorne MacLean, QC and his team can make the difference between an agreement that stands the test of time and one that crumbles if your relationship breaks down. Call 1 877 602 9900
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