Can a marriage contract protect my children's inheritance in Ontario?

Yes. A marriage contract — sometimes called a prenuptial agreement — can be a valuable tool in a blended family to clarify what each spouse keeps as their own property and what happens on death or separation. In Ontario, marriage contracts are governed by the Family Law Act and are legally binding if properly signed and witnessed.

For blended family estate planning, a marriage contract can be used to opt out of or modify the equalization of net family property that would otherwise apply on death. For example, both spouses might agree that each retains their pre-marriage assets and any inheritance received during the marriage as their own, and that the survivor's right to equalization is limited or waived. This can prevent a situation where the surviving spouse's equalization claim erodes what was intended to pass to children from a prior relationship.

A marriage contract cannot, however, contract out of a spouse's right to possess the matrimonial home in certain circumstances, and it must be fair and based on full financial disclosure by both parties at the time it is signed. A contract obtained by pressure or without disclosure can be set aside by a court.

Both parties should have independent legal advice before signing. Used properly, a marriage contract combined with a well-drafted will and appropriate insurance can give blended families significant protection.