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Home My WebLink AboutThe Citizen, 1994-02-23, Page 17THE CITIZEN, WEDNESDAY, FEBRUARY 23,1994. PAGE 17. A practical wedding tradition for the 90s Prenuptial agreements help preserve assets By Janice Becker If you are planning a second or maybe a third trip to the altar, there are considerations other than just the wedding and the warm vacation spot. Though not a romantic or 'I will love you forever' subject, premari tal contracts may be the practical and wise decision for soon-to-be newlyweds in the 90s when almost 50 percent of marriages end in divorce. Alan Mill, a barrister with Craw ford, Mill and Davies of Wingham and Brussels, says, "For the person who is considering a second mar riage, a prenuptial agreement will help preserve the assets of the wealthier individual, if that is their wish." "Very few young couples con template such a contract because there is very little discrepancy in personal assets," says Mr. Mill. "However, for the widow/widow- er or divorcee, there may be the desire to protect the assets which one has accumulated over time," he says. "As an example," says Mr. Mill, "think of the 45-year-old bachelor who owns a 450 acre farm, debt- free but, has never had time for a social life. He finally meets a young lady, in her 20s, and they marry. divorce, after a reasonable amount of time, the wife could be entitled to 50 percent of the farm (under the Family Law Act)." "Recently though," Mr. Mill says, "the courts have not been allowing a 50/50 split when it is deemed unconscionable (they have been married for a very short peri od of time)." This preservation of assets may also be desired to protect the inheri tance of children from the first mar riage or bequeaths to others. A prenuptial agreement would normally outline each partners' assets prior to the marriage and state that those are not to be split. Only assets acquired after the mar riage could be divided with a divorce. The contract should be written in conjunction with a new will (wills become void with a new marriage). This would ensure that the estate was divided in accordance with the deceased's wishes. If the will were not updated, the estate would go to the surviving spouse. Items included in a prenuptial agreement would usually be large assets such as land, homes, cars and possibly furniture. In the case where two homes are owned and one is to be sold due to the marriage, a clause is often included to cover living arrange ments for the survivor if the origi nal owner dies. This clause often stipulates that the remaining spouse may occupy the home for his/her remaining years, with various arrangements for the payment of utilities, or that other accommodations must be found within a certain time limit, such as one year, at which time the proceeds from the home are dis persed in accordance with the will. Provisions for support can also be included in this section. If, at some time during the mar riage, the home is given up and the couple moves into other accommo dations such as rental or joint own ership, the contract must be updated. If no arrangements have been made prior to marriage, the house goes to the survivor. Similar guidelines should be set for other large ticket items. Mr. Mill says he tries to avoid including 'who pays for what' in the agreement. These cannot be enforced and it may be an indica tion the couple is in trouble before they start He has seen some contract nego tiations break engagements but, if the couple comes to him with a list of assets and a good idea of what they want, the contract can be drawn up and signed in under two weeks. Mr. Mill emphasizes that a lawyer can write up the contract and advise the client based only on the disclosed information. "If someone were to sit on a gold mine, we could not be responsible for advising the client properly if we arc uninformed," he says. Those holding agreements must remember to amend them when sit uations change. This will eliminate any disputes if a divorce takes place. Mr. Mill has considerable experi ence writing up prenuptial agree ments, doing between 15 and 25 per year, and he has one piece of advice, "Apply common sense." The Best For Less! k kJk k k kAAAA A GROOM’S TUXEDO RENTAL FREE PLUS $$$$ SAVINGS FOR EVERYONE IN THE WEDDING. *Conie> see us for details BUD GOWAN F®L o London Location 181 York Street London. Ontario N6A IBS (519)672-6210 Fax (519) 672-5713 Sarnia Location 211 N. Front Street Sarnia. Ontario NTT 5S5 (519) 336-3)11 Fax (5I9)3H-5918 Woodstock Location ■171 Dundas Street Woodstock. Ontario VIS 1C2 (519)539-7701 Fax (519) 121-2338 Waterloo Location 20 William Street West Waterloo. 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