What Is a Prenuptial or Postnuptial Agreement, and Do I Need One in Alberta?

When couples enter into marriage, the last thing on their minds is often what might happen if the relationship ends. Still, divorce and separation do occur — and that is why a prenuptial (prenup) or postnuptial (postnup) agreement is something every couple should consider.

While some people see these agreements as unromantic or a sign of mistrust, they are better understood as a form of protection — much like insurance. You don’t buy car insurance because you expect to crash; you buy it for peace of mind. A prenuptial or postnuptial agreement serves the same purpose for your marriage.

What Is a Prenuptial Agreement?

A prenuptial agreement is a legally binding contract signed before marriage. It sets out how property, assets, and debts will be managed during the marriage and what happens if the relationship ends.

A postnuptial agreement works the same way, but it is signed after the marriage has already begun. Couples often choose a postnup when circumstances change — such as receiving an inheritance, starting a business, or one spouse leaving the workforce to raise children.

Alberta’s Family Property Law

If you separate or divorce without a prenuptial agreement, Alberta’s Family Property Act (FPA) governs how assets and debts are divided. The FPA replaced the Matrimonial Property Act in 2020.

The Act requires that family property be divided equitably between spouses and adult interdependent partners, but not all property is shared equally. Exemptions may include:

• Property owned before the marriage or cohabitation.
• Inheritances and third-party gifts.
• Insurance proceeds or personal injury awards.

Family property under the FPA can include:

• Real estate (homes, condos, or business property with living space).
• Household goods and furnishings.
• Bank accounts, pensions, and investments.

If spouses cannot reach an agreement, the courts will divide property under the rules of the Act — which may not reflect what either party wanted.

Why Circumstances Matter

A prenup may seem unnecessary for young couples with limited assets. But as life unfolds, circumstances change:

• One partner may leave the workforce to raise children.
• A family member may provide a loan or gift for a down payment.
• A spouse may build a business or receive an inheritance.
• A second marriage may involve children from previous relationships.

In these situations, a prenuptial or postnuptial agreement provides clarity and prevents disputes. For example, if your parents helped with a house down payment, should that money be repaid if the marriage ends? A prenup can answer that question upfront.

What Makes a Prenuptial Agreement Legally Enforceable?

In Alberta, a prenup must meet certain requirements to be valid. These include:

• Voluntary consent: You cannot be forced to sign.
• Independent legal advice: Each partner must have their own lawyer.
• Financial disclosure: Both parties must share honest and complete information about assets, debts, and liabilities.
• Proper execution: The agreement must be signed separately and witnessed.

Without these safeguards, the agreement may not stand up in court.

Key Elements of a Prenuptial or Postnuptial Agreement

A well-drafted prenup should clearly outline:

• Asset and debt disclosure: A full list of property, income, and liabilities.
• Division of property: How real estate, savings, and personal property will be divided if the relationship ends.
• Spousal support: Terms for potential support obligations.
• Business and inheritance protections: Safeguards for family businesses, trusts, and inherited property.
• Review clauses: Regular reviews to update the agreement as life circumstances change.

Why Work With a Lawyer?

While it’s not mandatory to have a prenup or postnup, these agreements can prevent costly and stressful disputes later. At Cambria Law, our family law team provides:

• Custom drafting and review tailored to your circumstances.
• Guidance with financial disclosure to ensure fairness.
• Updates and modifications to keep agreements relevant as life changes.

By planning ahead, you can protect your financial future and reduce conflict if your marriage ends.

Contact Cambria Law for Prenuptial and Postnuptial Agreements

If you are considering a prenuptial or postnuptial agreement, it’s important to get advice from an experienced family lawyer. At Cambria Law, Noori Sidhu and Renn Spence can help you create a fair, comprehensive, and legally enforceable agreement that protects both parties.