Marriages, like any partnership, can face unexpected challenges. When financial and personal dynamics evolve, couples may find themselves exploring Post-Marriage Contracts as a means to re define their commitments, avoid greater financial risks and safeguard their interests.
Here are some common reasons why couples opt for Marriage Contracts after they have been married.
Financial strains can place immense pressure on a marriage. Couples grappling with mounting debts, differences in spending habits, or changes in financial circumstances may turn to Post-Marriage Contracts to re-establish financial expectations and alleviate tension.
Consider Sarah and Mark who had been married for five years, but over time, financial stress began to chip away at their relationship. They both had full-time jobs, but they came from very different financial backgrounds and had contrasting approaches to money. Sarah was more of a saver, preferring to budget tightly and avoid unnecessary spending. Mark, on the other hand, had a more relaxed attitude toward money. He enjoyed splurging on gadgets, dining out, and taking spontaneous vacations. While this didn’t seem like a problem early on, it slowly became one as their debt began to accumulate. Sarah and Mark had a mortgage, car loans, and credit card debt from Mark’s impulsive purchases. Sarah tried to rein in spending, but Mark’s spending habits persisted. As their financial situation worsened, arguments about money became more frequent. Sarah would get frustrated when she saw Mark buying new electronics or making extravagant plans without considering their mounting debts. Mark felt controlled and stifled by Sarah’s insistence on saving and budgeting, seeing her approach as too rigid. The tension in their marriage started to spill over into other areas. They began avoiding discussions about finances, which only made the situation worse. Bills went unpaid, credit scores dropped, and the stress from their financial mismanagement strained their emotional connection. They found themselves fighting more often, not just about money but about their priorities, their future, and whether they could stay married under the pressure.
After a particularly heated argument, Mark suggested that they consult a financial counselor. The counselor helped them realize that their differing financial habits weren’t just a result of poor communication, but a fundamental mismatch in their values and expectations regarding money. This realization led them to discuss the possibility of creating a Post Marriage Contract to clearly define their financial roles and expectations moving forward. This contract allowed them to create clear financial boundaries, and it helped to rebuild their trust in each other.
While it wasn’t a complete fix to their deeper issues, it helped alleviate some of the stress around money and gave them a concrete plan to work toward. Over time, Sarah and Mark began to understand each other’s financial needs and concerns better, and the constant strain that had once seemed insurmountable became more manageable. The financial pressure, though still present, no longer dominated their relationship as it once had.
Another example is when a spouse is to receive a significant inheritance. In that case, couples may choose to sign a Post-Marriage Contract to clarify how the inherited wealth should be managed within the marriage. This can prevent potential conflicts and provide a structured approach to handling newfound financial resources.
Consider the example of Farhad and Armen who have been married for ten years and, one day, Farhad learned that she was to inherit a substantial sum of money from her late grandfather, along with a family-owned business. While Farhad and Armen have always managed their finances jointly, Farhad wanted to ensure that the inherited assets are protected and that her family’s legacy is preserved, especially in the event of a divorce.
To address this, they decided to enter into a Post-Marriage Contract which helped prevent potential disputes in the future while maintaining transparency and mutual understanding.
The most threatening of all events during marriage is the discovery of infidelity. It can have profound effects on a marriage. Couples opting to re-build their relationship – while attempting to remediate the broken trust – may use a Post Marriage Contract to address financial concerns stemming from the breach of trust, ensuring both parties are protected as they work towards reconciliation.
Consider Parminder and Rahul who had been married for twenty years when Parminder discovered that Rahul had been having an affair for the past six months. The revelation shattered their trust, and for several weeks, the couple struggled to communicate. After the initial shock and anger subsided, they began to explore the possibility of rebuilding their relationship. Parminder was deeply hurt and uncertain about whether she could ever trust Rahul again, while Rahul was f illed with remorse but wanted to prove his commitment to her and their family. As part of their effort to move forward, they decided to consult a marriage counselor and also sought legal advice. Recognizing the need for a clear framework to address both emotional and practical concerns, they opted to create a Post-Marriage Contract. The contract was designed not only to protect both parties but also to ensure transparency, fairness, and mutual respect in their rebuilding process. The Post-Marriage Contract was an important tool for Parminder and Rahul to navigate the new chapter of their marriage. While it was not a cure-all, it provided a structure that helped both of them address their individual concerns. For Parminder, it gave her a sense of control and security in an otherwise uncertain situation, while Rahul saw it as an opportunity to prove his commitment to rebuilding trust. Over time, they worked through their emotional pain and gradually rebuilt their bond, with the contract acting as a constant reminder of their mutual dedication to healing and rebuilding their marriage. Life is dynamic, and decisions made during a marriage can have varying impacts on each partner.
Whether it is one of the above example, or a career change, a significant move, or a major investment, a Post-Marriage Contract can provide a framework for handling the financial consequences of decisions that may affect the couple differently.
In conclusion, Post-Marriage Contracts offer couples a way to adapt to changing circumstances and reinforce the foundation of their relationship. By addressing financial concerns and clarifying expectations, these agreements provide a level of security and transparency that can contribute to the longevity and health of a marriage. It is essential for couples considering a Post-Marriage Contract to engage in open and honest communication and seek legal and f inancial advice to ensure that the terms are fair, mutually agreed upon, and legally sound.
This article was published in STEP Toronto Connection Newsletter – January 2025 – Vol. 12 No. 2 at https://step.ca/downloads/memberservices/STEP_Toronto_Newsletter_January_2025.pdf
Steve Benmor, B.Sc., LL.B., LL.M. (Family Law), C.S., Cert.F.Med., C.Arb., FDRP PC, is the founder and principal lawyer of Benmor Family Law Group, a boutique matrimonial law firm in downtown Toronto. He is a Certified Specialist in Family Law, a Certified Specialist in Parenting Coordination and was admitted as a Fellow to the prestigious International Academy of Family Lawyers. Steve is regularly retained as a Divorce Mediator/Arbitrator and Parenting Coordinator. Steve uses his 30 years of in-depth knowledge of family law, court-room experience and expert problem-solving skills in Divorce Mediation/Arbitration to help spouses reach fair, fast and cooperative divorce settlements without the financial losses, emotional costs and lengthy delays from divorce court.
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