Yes, an Ontario marriage contract can legally dictate who retains ownership of highly coveted lifestyle assets-such as Toronto Maple Leafs season tickets, country club memberships, or a Muskoka boat slip-by specifically excluding them from the division of Net Family Property.
When most people in Ontario think about a divorce settlement, their minds immediately go to dividing the matrimonial home, splitting the bank accounts, and assessing Spousal Support. However, for many affluent families, the most bitter arguments are not over cash; they are over irreplaceable lifestyle assets. Who gets to keep the family’s Toronto Maple Leafs season tickets? Who retains the exclusive membership at the local golf and country club? Who gets the highly sought-after marina slip for the boat?
Under the Ontario Family Law Act, the default rule is that the value of assets acquired during the marriage must be shared equally. 📜 But you cannot simply “split” a single pair of season tickets or cut a golf membership in half. Without a clear agreement, these items often have to be sold, or one spouse is forced to buy the other out at an exorbitant valuation. Fortunately, a well-crafted marriage contract (prenup) can definitively solve this problem before it starts. In this guide, we will explore how to protect your lifestyle assets. If you want to secure your unique perks, connecting with a skilled family lawyer from our directory is essential.
Step-by-Step Process in Ontario: Protecting Lifestyle Assets in a Prenup
Securing a lifestyle asset requires more than just saying “I get the tickets.” The contract must address the legal value of the asset and any third-party rules that govern it.
Step 1: Identify and Categorize the Asset
🔍 First, make a complete inventory of all lifestyle assets that hold significant value or emotional importance. This includes Personal Seat Licenses (PSLs) for sports arenas, exclusive club memberships, expensive wine collections, or even accumulated Air Canada Aeroplan points. You must clearly identify these items in the financial disclosure section of your marriage contract so that there are no surprises later.
Step 2: Understand Third-Party Vendor Rules
Before you draft the contract, you must understand that lifestyle assets are often governed by external companies. For example, Maple Leaf Sports & Entertainment (MLSE) has very strict rules regarding the transfer of seat licenses. A private golf club may have a board of directors that must approve any membership transfer. Your marriage contract can dictate who holds the *family law* rights to the asset, but it cannot force a private company to break its own terms of service.
Step 3: Draft the Exclusion Clause
The core of the strategy is the exclusion clause. Your lawyer will draft specific language stating that the season tickets or club membership (and any increase in their value) are explicitly excluded from the calculation of Net Family Property (NFP). 💼 This means if a divorce happens, the asset remains your sole property, and you do not have to pay your spouse half of its monetary value.
Step 4: Address Future Upkeep and Fees
Lifestyle assets require ongoing financial maintenance. Who pays the annual membership dues or the yearly ticket invoices during the marriage? The contract should clarify whether these payments are being made from joint family funds or from your sole, separate bank account. If joint funds are used to pay for your exclusive asset, a judge might view it as commingled, which could complicate the exclusion during a divorce.
How Much Does it Cost in Ontario?
Protecting premium lifestyle assets adds a layer of complexity to drafting a domestic contract. Consider these financial factors:
- Lawyer Fees in CAD: A highly customized marriage contract that deals with complex assets, business interests, and seat licenses typically costs between $3,000 and $6,000+ CAD to draft.
- Asset Valuations: If the other spouse wants to know the exact value of what they are giving up, you may need to hire an appraiser to determine the fair market value of the PSL or club membership, which can cost $500 to $1,500 CAD.
- Independent Legal Advice (ILA): The second spouse must have their own lawyer review the exclusion clauses, costing roughly $500 to $1,500 CAD.
| Sports Season Tickets (PSL) | Can be excluded from Net Family Property. | Subject to the team’s transfer policies. |
| Golf Club Membership | Can be designated to one spouse. | Subject to the club’s board approval. |
| Travel Reward Points | Can be excluded from property division. | Airline terms of service apply. |
How Long Does the Process Take?
⌖ Drafting a detailed marriage contract that properly addresses niche lifestyle assets takes time. You should expect the negotiation and drafting process to take 2 to 4 months. It is highly recommended to finalize the agreement well in advance of the wedding day so that neither party feels pressured into giving up their rights to valuable family perks.
Frequently Asked Questions (FAQ)
What happens to the tickets if we don’t have a marriage contract?
Without a contract, the monetary value of the seat licenses or membership is usually factored into the Net Family Property calculation. You may end up having to pay your spouse 50% of their value in cash just to keep the tickets in your name.
Can the sports team block the transfer of my tickets in a divorce?
Yes. Even if a family court judge orders the tickets transferred, professional sports teams operate as private entities with their own rules. However, most teams have specific administrative processes in place for transferring licenses due to a divorce or death.
Can we agree to share the tickets after a divorce?
Yes. Your marriage contract can create a co-ownership arrangement where you agree to split the cost of the season tickets and draft a draft system for choosing which games each ex-spouse gets to attend, though this requires high ongoing cooperation.
Do travel points (like Aeroplan) really matter in a divorce?
Absolutely. For couples who travel extensively for business, accumulated reward points can be worth thousands of dollars. They are considered property under Ontario law and can be divided or excluded via a marriage contract.
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