Wealthy unfair BC marriage agreement lawyers help clients address unfair marriage, prenuptial, and cohabitation agreements. Our top rated wealthy unfair BC marriage agreement lawyers warn clients the time to ensure a marriage agreement is fair is at the start BEFORE YOU SIGN YOUR RIGHTS AWAY. Get disclosure, anticipate future events as best as possible and have sunset clauses if you are to receive your fair share of support and family property division. Notably, Agreements signed before 2013 have a “fairness test” for variation while those after March 2013 apply a higher “significant unfairness” test. In today’s blog Fraser MacLean explains the test for agreements signed before March 2013.
What Makes a Marriage Agreement Fair? Lessons from Bradley v. Callahan Recent Court Decision That Protects Spouses’ Contributions
A recent court decision has shed important light on when marriage agreements (sometimes called “prenups”) can be challenged, even when they seem airtight. This case, Bradley v. Callahan, shows that marriage agreements need to be not just legally valid, but also fair in their results. Our top Wealthy Unfair BC Marriage Agreement Lawyers recommend the time to make sure your agreement is fair is BEFORE NOT AFTER YOU SIGN IT.
Wealthy Unfair BC Marriage Agreement Lawyers- Background
Norval Bradley and Ted Callahan began living together in 1992, married in 1997, and separated in 2014 after 17 years of marriage. Just before their wedding, they signed a detailed agreement that said Mr. Callahan would keep all his business interests if they ever separated, including any businesses he acquired during the marriage. So the wife signed off any claim to any future property entitlement which was foolish obviously.
During their marriage, something extraordinary happened: Mr. Callahan’s business assets grew from about $3 million to an astonishing $85 million when they separated. By 2019, those assets were worth around $127 million.
Meanwhile, Ms. Bradley gave up her career as a realtor to raise their children and manage their home. This arrangement allowed Mr. Callahan to focus entirely on growing his business empire.
What Initially Happened in Court
When their case first went to court, the trial judge ruled that their marriage agreement was valid and fair. He awarded Ms. Bradley $8.6 million in spousal support but said she wasn’t entitled to any of the business assets or retroactive support.
Ms. Bradley appealed this decision, arguing that the agreement wasn’t fair and should be varied both on property and support grounds.
Why the Appeal Court Changed the Decision
The Appeal Court agreed with Ms. Bradley and found several problems with the trial judge’s decision:
- Her contributions were overlooked: The court recognized that by taking care of the home and children for 17 years, Ms. Bradley indirectly helped Mr. Callahan build his business.
- The growth was unexpected: The court said no one could have reasonably expected the business to grow by over 4,100% when they signed the agreement.
- The length of marriage matters: After 17 years of marriage, it wasn’t fair to stick to the exact terms of an agreement made when circumstances were so different.
- Money support wasn’t enough: The court found that spousal support alone couldn’t fix the unfairness of Mr. Callahan keeping all the business growth that Ms. Bradley helped make possible.
The Court’s Decision
The Appeal Court ordered Mr. Callahan to pay Ms. Bradley $29 million as her fair share of the business growth. This represented about 25% of the growth in value from the time of marriage to their separation, plus some interest, minus the support already awarded.
Wealthy Unfair BC Marriage Agreement Lawyers Explain What This Means For You
MacLean Law’s top Vancouver wealthy unfair BC marriage agreement lawyers warn that if you’re considering a marriage agreement or wondering if your existing one is fair, this case highlights some important points:
- Unexpected changes matter: Courts may step in if circumstances change in ways you couldn’t have predicted when signing.
- All contributions count: Taking care of the home and children is recognized as a valuable contribution to a family’s wealth.
- Long marriages increase expectations of sharing: The longer your marriage, the more likely a court will ensure both spouses share in the wealth created during that time.
- Intentions vs. fairness: While courts respect what you intended when signing an agreement, they also ensure the end result is fair to both parties.
Marriage is viewed as a partnership. If one spouse’s efforts (whether in the office or at home) help create substantial wealth, courts generally believe both partners should benefit from that success.
Wealthy Unfair BC Marriage Agreement Lawyers- Have questions about marriage agreements?
If you have questions about creating a fair marriage agreement or reviewing one you already have, MacLean Law’s team can help ensure your interests are protected.
