To strictly protect pre-marriage assets in New Brunswick, you should draft a formal Marriage Contract (often called a prenup). Without this legal agreement, the financial growth of your assets during the marriage, or the assets themselves if mixed with joint funds, may be divided 50/50 under the Marital Property Act.
Getting married is a wonderful milestone, but it is also a major financial partnership. Many couples in New Brunswick enter marriage with significant assets they worked hard to build beforehand. You might have a successful small business in Moncton, an established investment portfolio, or a house you bought on your own.
Naturally, you might wonder what happens to these hard-earned assets if the relationship eventually breaks down. Protecting your financial foundation does not mean you love your partner any less. In this guide, we will explain exactly how you can shield your pre-marriage assets from division in New Brunswick using straightforward legal steps.
Step-by-Step Process to Protect Your Wealth in New Brunswick
In New Brunswick, the Marital Property Act generally considers the wealth accumulated during the marriage as a joint effort to be divided equally. However, pre-marriage assets can easily become tangled if you are not careful. Here is how you can keep them safely separated.
Step 1: Identify and Value Your Pre-Marriage Assets
Before you walk down the aisle, you need a highly accurate snapshot of your net worth. You must list out every single asset you own and obtain professional appraisals 📝. If you own real estate in Fredericton, hire a certified appraiser to document its exact fair market value on the day you get married. If you own a business, you might need a Chartered Business Valuator (CBV) to state what the shares are worth right now.
Step 2: Avoid Commingling Your Funds
One of the biggest mistakes people make is “commingling” or mixing their separate property with family property . If you sell your pre-marriage boat and deposit that money into a joint checking account used for groceries and family trips, a judge at the Court of King’s Bench may rule that the money is now a shared family asset. To protect your separate funds, always keep them in a strictly separate bank account under your name only.
Step 3: Draft a Formal Marriage Contract
The absolute safest way to protect your assets is to sign a Marriage Contract (commonly called a prenuptial agreement). This is a highly specific legal document where you and your partner agree in writing that certain assets will remain 100% yours if you separate. Your lawyer will draft this contract to explicitly state that both the original value and any future growth of your pre-marriage assets are fully excluded from the marital property division.
Step 4: Sign with Independent Legal Advice (ILA)
For your contract to be legally ironclad, both you and your partner must fully understand it. You cannot simply print a template off the internet and sign it at the kitchen table. Each of you must hire your own separate family lawyer. The lawyers will review the document and provide a Certificate of Independent Legal Advice, proving that nobody was pressured or confused.
How Do Different Assets Get Handled?
The legal rules can shift depending on exactly what type of asset you are trying to protect. Here is a brief overview:
| Asset Type | Standard Legal Treatment Without a Contract |
|---|---|
| The Marital Home | Even if you owned the house before marriage, if you and your spouse live in it together as your primary family residence, its full value is usually divided 50/50. |
| Pensions & RRSPs | Only the portion of the pension or retirement savings that actually accumulated during the marriage is typically subject to division. |
| Business Shares | The original value before marriage remains yours, but any financial growth or increased value of the business during the marriage is generally divided equally. |
How Much Does it Cost in New Brunswick?
Protecting your assets is an upfront investment that can save you tens of thousands of dollars later:
- Lawyer Drafting Fees: A seasoned family lawyer in New Brunswick typically charges between $1,500 CAD and $3,500 CAD to draft a custom, comprehensive Marriage Contract.
- Independent Legal Advice (ILA): The spouse who is reviewing the agreement will pay their own lawyer roughly $500 CAD to $1,500 CAD for ILA.
- Appraisal Fees: Hiring a professional to value a house or small business before the marriage usually costs between $400 CAD and $2,000 CAD.
How Long Does the Process Take?
You should absolutely start this process well before your wedding day. Gathering financial documents, drafting the initial contract, and negotiating minor changes usually takes about 2 to 3 months. Presenting a complex contract to your partner just a week before the wedding can be seen by the court as “duress,” which might completely invalidate the agreement.
Frequently Asked Questions (FAQ)
Can a marriage contract protect my future inheritance?
Yes. While inheritances kept in separate accounts are generally exempt from division in New Brunswick anyway, explicitly mentioning them in a Marriage Contract adds an unbreakable layer of security and prevents any costly arguments later on.
What happens if I use my pre-marriage savings to pay off our joint mortgage?
If you take separate funds and sink them into a joint marital home, that money is generally considered a gift to the marriage. Without a specific contract stating you get that money back first upon separation, it will likely be divided 50/50.
Is a Marriage Contract the same thing as a Cohabitation Agreement?
They are very similar. A Cohabitation Agreement is for couples who live together but are not legally married. In New Brunswick, if you sign a Cohabitation Agreement and later get legally married, that document automatically transforms into a valid Marriage Contract.
Can we just write our own agreement without lawyers?
You can technically write an agreement on your own, but it is incredibly risky. The Court of King’s Bench frequently throws out “do-it-yourself” contracts if the financial disclosure was incomplete or if one person did not fully understand their legal rights.
Leave a Reply