If you’ve built a business, accumulated wealth, or worked hard to grow your professional career, the idea of losing a portion of it in a divorce can feel deeply unsettling.
You can be excited about your future with your new partner and still protect yourself.
That’s where a marriage contract (often called a prenuptial agreement) comes in. In Ontario, it’s not just a legal formality but a powerful tool for protecting what you’ve built.
Without a contract, the Family Law Act states, your business or personal assets could be seen as shared property even if your spouse had no role in growing them.
A solid prenup gives you clarity, protection, and peace of mind so you can feel safe, knowing your financial future is secure.
Why Business Owners Need a Marriage Contract
Your business is likely one of your most valuable assets. Whether built from the ground up or inherited, protecting your business from division during divorce is crucial.
A marriage contract clearly states your business will remain yours alone. It can also protect personal assets, such as family cottages, investment properties, or trust funds set aside for children.
Without a clear agreement, disputes over asset division can lead to costly legal battles, emotional stress, and potential harm to your business operations. A marriage contract encourages clear communication, reduces uncertainty, and helps build a secure future.
If you are ready to talk to a lawyer about your options Daniel is ready to help you draft out a marriage contract. Book your free consultation.
Protecting a Business with a Marriage Contract: Meet Sarah & David
Meet Sarah and David. Sarah, a successful entrepreneur in Ontario, built a thriving interior design business over 15 years. Her business employed 10 people and served clients across Ontario. When she and David, an engineer, decided to marry, Sarah had one major concern—protecting her business in case of separation or divorce.
Having previously experienced a difficult separation, Sarah knew the importance of a clear prenuptial agreement. Without a well-drafted marriage contract, Sarah’s business could have been considered marital property under Ontario’s Family Law Act. That would mean David, despite no involvement, could potentially claim a share of it.
Sarah and David consulted an experienced family lawyer who specialized in family law in Ontario to draft a clear and enforceable marriage contract. Their agreement clearly stated Sarah’s business, family cottage, and trust fund would remain separate and protected. By defining these terms upfront, they avoided potential legal disputes and achieved peace of mind.
Years later, Sarah and David remain happily married. Sarah continues to grow her business without fear of financial loss. Their marriage contract provided legal clarity, financial security, and open communication, strengthening their relationship.
*Names and information changed for privacy and protection
Key Strategies for Protecting Your Business in Divorce
A clear prenuptial agreement in Ontario is just the first step. Consider these additional strategies:
Maintain Clear Financial Records
Accurate financial records are essential to protect your business during a divorce. Track daily transactions and monitor your business’s value over time. Hiring an accountant or financial advisor helps ensure accuracy and clarity. A business valuation expert may also be necessary during separation or divorce proceedings.
Use Trusts to Shield Assets
Placing business assets into a trust can shield them from division. A trust allows assets, like business shares, to be managed by a trustee for specific beneficiaries. However, make sure you’re not the beneficiary to avoid complications. Trusts can be complex, so seek legal advice before choosing this route.
Be Mindful of the Separation Date
In Ontario, the date of separation determines which assets are divided. Assets you gain after this date could be considered marital property. Keeping accurate records of your business’s financial status at the separation date is crucial for protecting your interests.
A marriage contract is an important document and the next step before getting married. Learn more about your options.
Steps to Creating a Marriage Contract in Ontario
Drafting a marriage contract requires careful planning and professional guidance. Begin by consulting an experienced family lawyer who knows Ontario family law.
Both partners must openly share all assets, income, and liabilities. Each partner should have independent legal advice to ensure fairness and avoid issues later. Once both partners agree, the contract becomes legally enforceable.
Why You Need a Marriage Contract as a Business Owner
For entrepreneurs and high-net-worth individuals, a marriage contract in Ontario offers peace of mind and financial protection. It ensures your business remains yours, inherited wealth and investments stay separate, and costly legal disputes are avoided. Tailor your agreement to address specifics like intellectual property, spousal support, and inheritances.
Protect Your Business & Financial Future Today
If you’re a business owner or have significant assets, a marriage contract is essential. At Horra Family Law, we specialize in drafting customized marriage contracts to safeguard your future.
Schedule a free consultation with Horra Family Law today to begin your journey.
Frequently Asked Questions About Marriage Contracts
What is a Marriage Contract?
A marriage contract (often called a prenuptial agreement) is a legal agreement between two people that sets out how their finances, property, and assets will be handled during the marriage and if the relationship ends.
It can include how property will be divided, who will be responsible for debts, and whether spousal support will be paid. In Ontario, it’s a smart way to protect what you’ve built and avoid uncertainty if things don’t go as planned.
How Can a Marriage Contract Protect My Business?
A marriage contract can clearly state that your business is your separate property meaning it won’t be divided if you separate or divorce. Without this agreement, Ontario’s Family Law Act may treat the growth in your business’s value during the marriage as shared property. That could lead to your spouse making a claim, even if they had no involvement in the business. A well-drafted contract helps you avoid disputes, protect your company’s future, and stay in control of what you’ve built.
Is a Marriage Contract Enforceable in Ontario?
Yes. If both partners provide complete financial disclosure and receive independent legal advice, the contract is enforceable under Ontario’s Family Law Act.
What Should Not Be Included in a Marriage Contract?
Marriage contracts can’t decide child custody, parenting time, or child support. These matters are handled separately and must reflect the child’s best interests at the time of separation.
What’s the Difference Between a Marriage Contract and a Separation Agreement?
A marriage contract (or prenuptial agreement) is made before or during a marriage to protect assets and outline financial responsibilities if the relationship ends.
A separation agreement is made after a couple separates and deals with how property, support, and parenting will be handled going forward.