When couples with significant assets decide to marry, the legal and financial stakes can be high. Business interests, investments, real estate portfolios, family trusts, and future earning potential all deserve careful consideration. For these couples, a prenuptial agreement is not about pessimism. It is about clarity, fairness, and long‑term planning.
This article explains what is a prenuptial agreement, how high‑net‑worth prenups differ from standard agreements, and why they are often essential for couples with a high prenup net worth in Canada.
So, what is a prenuptial agreement under Canadian law?
A prenuptial agreement, often called a prenup, is a written domestic contract entered into by two people before marriage. It sets out how financial matters such as property, debt, and spousal support will be handled during the relationship, and if the relationship ends.
Understanding what is a prenuptial agreement is especially important for couples with a high net worth before marriage, because default family law rules may not reflect their intentions or protect complex assets.
Under provincial family law legislation, couples are generally free to contract out of certain statutory rights, provided the agreement meets legal requirements and is generally fair, considering the circumstances of the couple.
Many people ask what does a prenup do – in practical terms.
A prenup can:
For couples with a high prenup net worth, what a prenup does is provide predictability in situations where the financial consequences of separation could otherwise be substantial.
High‑net‑worth prenups tend to be more detailed and tailored than standard agreements.
While all couples benefit from understanding what does a prenup do, those with significant assets often need additional provisions to address:
These factors mean that a one‑size‑fits‑all approach is rarely appropriate for high‑net‑worth couples.
A common question is who needs a prenup. At Jointly, we believe that every couple can benefit from having a prenup or a cohabitation agreement. There is value in clarity and getting on the same page no matter your income level.
However, high‑net‑worth individuals often prioritize prenups when:
For these couples, a prenup is not about mistrust. It is about protecting what has already been built and avoiding unintended consequences.
When creating a prenup for couples with a high prenup net worth, certain considerations are especially important:
High‑net‑worth prenups often include specialized clauses tailored to complex financial lives.
Asset division clauses specify how property will be treated if the marriage ends. This may include excluding certain assets from division or setting out alternative arrangements that reflect the parties’ intentions.
Understanding what does a prenup do in this context helps couples manage expectations clearly.
Prenups can address spousal support by setting limits, formulas, or waivers, subject to legal constraints.
For high‑net‑worth couples, this can reduce uncertainty while still allowing flexibility if circumstances change.
Business ownership is one of the most common drivers of high‑net‑worth prenups.
Clauses may address valuation methods, growth during the marriage, and how interests are treated if the relationship ends. This can be critical for protecting partners, shareholders, and employees.
Many high‑net‑worth individuals are beneficiaries of trusts or expect future inheritances.
A prenup can clarify how these interests will be treated and help ensure family intentions are respected.
High‑net‑worth couples may also carry significant liabilities, such as business loans or guarantees.
Debt protection clauses clarify responsibility and help prevent one partner from being unfairly exposed.
People often ask how to create a prenuptial agreement that is appropriate for complex finances.
The process typically includes:
Understanding how to create a prenuptial agreement thoughtfully is key to long‑term enforceability.
The benefits of a prenup for high‑net‑worth couples are often significant.
They include reduced litigation risk, protection of pre‑existing wealth, clarity for blended families, and the ability to plan proactively.
While the pros and cons of a prenup should always be weighed in each situation, many high‑net‑worth couples find that the benefits outweigh the drawbacks.
To be a valid prenuptial agreement in Canada, a prenup must meet certain requirements.
Generally, it must:
Independent legal advice strongly supports validity, especially in high‑value situations.
Many people ask are prenups enforceable in Canada.
Yes, Canadian courts generally enforce prenuptial agreements that are fair, properly executed, and based on full disclosure. Courts are more likely to uphold agreements that address financial issues rather than personal behaviour.
For high‑net‑worth couples, careful drafting is especially important because the financial consequences are greater.
Best practices include starting early, being transparent, and focusing on fairness.
Couples should revisit their agreement regularly as life changes and ensure the agreement continues to reflect their circumstances. A prenup should be a living document – it should be updated throughout your relationship to make sure it still fits your needs.
Above all, the agreement should support long‑term stability rather than create imbalance or pressure. A good prenup ensures that the contribution of both partners are valued and respected.
A prenuptial agreement for couples with a high prenup net worth is a strategic planning tool, not a prediction of failure.
Understanding what is a prenuptial agreement, what does a prenup do, and who needs a prenup empowers couples to make informed decisions about their future.
At Jointly, we help Canadians create clear, accessible prenuptial agreements that focus on enforceable financial outcomes and reflect Canadian family law.If you are ready to learn more about how to create a prenuptial agreement that fits your circumstances, you can get started here.
Aimee SchallesHi, I'm Aimee, a co-founder of Jointly. I’ve been working as a lawyer in British Columbia for over ten years. I run a small law firm and love helping people solve everyday problems. I’ve seen the difficulties that ordinary people face in accessing reliable legal services. I’ve also seen many friends and clients go through challenging separations that could have been improved if they’d have had a prenup or cohabitation agreement. I hope Jointly helps people make the relationship agreement they’ve been thinking about! Latest posts by Aimee Schalles (see all)