British Columbia Law
Marriage Agreements for High-Net-Worth Couples in BC
<p>A marriage agreement — commonly called a prenuptial agreement, or "prenup" — is the most reliable legal tool available to BC couples who want certainty about what happens to their assets if the relationship ends. For high-net-worth individuals, family business owners, or those entering second marriages with significant existing assets, a carefully drafted agreement can be worth far more than its cost.</p>
<h2>What BC Law Says About Marriage Agreements</h2>
<p>BC's <em>Family Law Act</em> explicitly recognizes marriage agreements as binding legal contracts. Unlike some other provinces, BC does not require a marriage agreement to be registered or filed — it simply needs to meet the requirements for a valid contract and comply with the Act's provisions about fairness and disclosure.</p>
<p>A marriage agreement in BC can:</p>
<ul>
<li>Define which assets are excluded from family property (including pre-relationship wealth and future inheritances)</li>
<li>Set out how property will be divided on separation, including departures from equal division</li>
<li>Waive or limit spousal support</li>
<li>Specify how debts will be allocated</li>
<li>Address what happens to a business interest</li>
</ul>
<p>It cannot override child support obligations or pre-determine custody and access arrangements — those are always decided based on the children's best interests at the time.</p>
<h2>What Makes a Marriage Agreement Enforceable</h2>
<p>BC courts will uphold a marriage agreement that meets these criteria:</p>
<h3>Full Financial Disclosure</h3>
<p>Both parties must have a clear picture of the other's financial situation before signing. This means disclosing assets, liabilities, income, and significant expected future wealth (such as an anticipated inheritance). An agreement signed without proper disclosure is vulnerable to challenge.</p>
<h3>Independent Legal Advice</h3>
<p>Each party should have their own lawyer review the agreement and advise them on its implications. Courts look very carefully at agreements where one party did not have independent advice — particularly if that party gave up significant rights.</p>
<h3>Voluntary Agreement</h3>
<p>The agreement must be entered into freely, without coercion or undue pressure. Presenting a prenup days before a wedding, after guests have arrived and flights are booked, is precisely the kind of situation courts scrutinize. The timing of the signing matters.</p>
<h3>Fairness at the Time of Enforcement</h3>
<p>A court can set aside an agreement that would be significantly unfair when it is sought to be enforced — even if it was fair when signed. Dramatically changed circumstances (serious illness, loss of earning capacity, care of children) can make a previously reasonable agreement unconscionable.</p>
<h2>Common Provisions in High-Net-Worth Agreements</h2>
<p>In practice, high-net-worth marriage agreements in BC typically address:</p>
<ul>
<li><strong>Pre-relationship assets:</strong> Confirming that each spouse's existing wealth — including investment portfolios, real estate, and business interests — remains their separate property</li>
<li><strong>Inherited wealth:</strong> Specifying that inheritances (and growth on them) remain excluded</li>
<li><strong>Business interests:</strong> Defining how a family business or professional practice will be treated on separation</li>
<li><strong>Spousal support caps or waivers:</strong> Setting a maximum duration or amount of support, or waiving it entirely</li>
<li><strong>Sunset clauses:</strong> Some agreements include provisions that change the division formula depending on how long the marriage lasts — recognizing that a 20-year marriage warrants different treatment than a 3-year one</li>
</ul>
<h2>Postnuptial Agreements</h2>
<p>There is no requirement in BC that a marriage agreement be signed before the wedding. A postnuptial agreement — signed after marriage — has equal legal standing. These are often used when:</p>
<ul>
<li>A spouse receives a significant inheritance after marriage</li>
<li>One spouse starts or acquires a business</li>
<li>A couple reconciles after a period of separation and wants clear terms going forward</li>
<li>Couples simply didn't address these issues before the wedding and want to do so now</li>
</ul>
<h2>The Cost of Not Having One</h2>
<p>Without a marriage agreement, BC's default rules apply. That means equal division of all family property accumulated during the relationship, spousal support based on the SSAG formula, and potentially years of expensive litigation to resolve disputes about valuation and entitlement.</p>
<p>For high-net-worth individuals, the cost of that litigation — in legal fees, stress, and lost time — can easily exceed the cost of a well-drafted agreement many times over.</p>
<p>Sea to Sky Law has 35 years of experience drafting and advising on marriage agreements in BC. If you would like to explore whether an agreement makes sense for your situation, we are here to help.</p>
This article is general information, not legal or tax advice. Meetings are by appointment only, by phone or secure video.