Grounds for Challenging a Marriage Contract in Ontario
1. Lack of Full Financial Disclosure
Under Ontario’s Family Law Act, each party must provide complete and honest financial disclosure before signing a marriage contract. If one spouse withholds significant financial information—such as hidden assets, debts, or business valuations—the contract may be invalidated. Courts consider full disclosure essential to ensuring fairness in the agreement.
- Example: If a spouse failed to disclose ownership in a private corporation, and the other party signed the contract without this knowledge, the court may find that the agreement was not based on informed consent.
- Remedy: The affected spouse can request the contract be set aside based on material nondisclosure.
2. Duress, Coercion, or Undue Influence
A marriage contract must be entered into voluntarily and freely. If there is evidence that one spouse was pressured or manipulated into signing—especially close to the wedding date or under emotionally charged circumstances—the contract could be deemed invalid due to duress or undue influence.
- Red flags include:
- Signing the contract shortly before the wedding
- No access to independent legal advice
- Threats to cancel the marriage if the contract isn’t signed
Courts in Ontario will examine the power dynamics between spouses and whether a genuine choice existed at the time of signing.
3. Unconscionable or Grossly Unfair Terms
Even when formal requirements are met, courts may set aside a marriage contract if its terms are unconscionable—meaning so unfair they shock the conscience. Ontario judges will assess whether the agreement results in one party bearing an undue financial burden while the other benefits disproportionately.
- Examples:
- A waiver of spousal support where one spouse becomes financially dependent
- Clauses that leave one party with no share of jointly acquired property
While fairness is not the sole criterion for enforcement, Ontario courts can intervene when the imbalance is extreme or violates public policy.
Legal Standards under Ontario’s Family Law Act
Section 56(4) Criteria for Setting Aside Agreements
Ontario’s Family Law Act, under Section 56(4), provides courts with the authority to set aside a marriage contract or any part of it if certain conditions are met. According to the legislation, a court may set aside a domestic contract if:
- A party failed to disclose significant assets, debts, or other liabilities at the time the agreement was made.
- A party did not understand the nature or consequences of the agreement.
- The agreement is otherwise unconscionable.
These statutory grounds underscore the importance of financial transparency, informed consent, and basic fairness in the creation of a Marriage Contract in Ontario.
The Role of Independent Legal Advice (ILA)
One of the most significant safeguards for the enforceability of a marriage contract is the presence of independent legal advice (ILA) for both parties. While not legally mandatory, the absence of ILA can greatly increase the chances that the agreement will be challenged successfully.
- Why ILA Matters:
- Ensures both parties understand their legal rights and obligations
- Protects against claims of coercion or ignorance
- Demonstrates fairness and due diligence if the agreement is later reviewed by the court
In many Ontario cases, courts have refused to uphold marriage contracts where one spouse did not receive proper legal counsel and lacked understanding of the contract’s implications.
Case Law Examples from Ontario Courts
- LeVan v. LeVan, 2008 ONCA 388
In this high-profile Ontario case, the Court of Appeal set aside a marriage contract due to inequality in bargaining power, lack of ILA, and failure to disclose key financial information. The wife had no meaningful input in the contract’s negotiation, and the court found the terms unconscionable. - Rick v. Brandsema, 2009 SCC 10 (though a Supreme Court case, it’s cited in Ontario decisions)
The Supreme Court of Canada emphasized that substantial disclosure and informed consent are critical. An agreement signed without full disclosure and while one party was in a vulnerable emotional state was deemed invalid. - Virdee v. Virdee, 2013 ONSC 1878
The Ontario Superior Court found that the husband had pressured the wife to sign the contract just days before the wedding, without her receiving proper legal advice. The court ruled the contract invalid due to duress and lack of informed consent.
These cases demonstrate that courts in Ontario will carefully scrutinize the validity of a Marriage Contract when there is evidence of procedural unfairness or power imbalance.
Common Mistakes That Lead to Invalidity
While the intent behind a Marriage Contract in Ontario is to provide clarity and protect both parties, certain mistakes during its drafting or maintenance can result in the contract being found invalid or unenforceable by Ontario courts.
1. Not Updating the Agreement After Major Life Changes
Marriage contracts should evolve with the couple’s circumstances. Significant life events—such as the birth of children, starting a business, receiving an inheritance, or changes in income—can make an existing agreement outdated or unfair.
- Legal Risk:
Courts may find that the original terms no longer reflect the current reality and are therefore unconscionable or contrary to the best interests of the family. - Best Practice:
Regularly review and revise the contract with a family lawyer, especially after major milestones.
2. Ambiguous or Contradictory Clauses
Unclear language or internal contradictions within the contract can lead to disputes over interpretation. If the contract fails to define key terms—such as “matrimonial home,” “support,” or “separate property”—a judge may rule it unenforceable due to vagueness.
- Example:
A clause that both excludes a home from division but also refers to it as “joint property” elsewhere in the contract can create confusion. - Solution:
Use precise legal language and have the contract reviewed by experienced counsel to ensure consistency.
3. Using Outdated or Foreign Legal Templates
Some couples attempt to save costs by using templates found online or contracts based on foreign laws (e.g., U.S. prenuptial agreements). However, these documents may not comply with Ontario’s Family Law Act, rendering them ineffective in court.
- Ontario-Specific Concerns:
- Ontario law has unique requirements regarding disclosure, spousal support, and the treatment of the matrimonial home.
- A contract drafted without reference to Canadian statutes and case law may be invalidated entirely.
- Recommendation:
Always draft or review the agreement with an Ontario family lawyer to ensure compliance with provincial laws and standards.
Steps to Protect the Validity of Your Agreement
1. Full Financial Transparency at the Time of Signing
A cornerstone of any enforceable marriage contract is complete financial disclosure. This means both parties must provide accurate and detailed information about their income, assets, debts, pensions, and business interests.
- Tip: Include balance sheets, tax returns, bank statements, and property valuations. Have both parties acknowledge receipt of this information in writing within the contract.
- Why It Matters: Courts will quickly set aside an agreement under Section 56(4) of Ontario’s Family Law Act if significant financial details were omitted or misrepresented.
2. Ensuring Each Party Has Separate Legal Counsel
Independent legal advice (ILA) protects both parties by confirming that each understands their rights, the implications of the contract, and that they are signing it voluntarily.
- Best Practice: Each spouse should retain their own family lawyer—not the same lawyer—to avoid conflicts of interest and to provide proper documentation that ILA was received.
- Legal Benefit: Demonstrates fairness and informed consent, strengthening enforceability if the contract is ever challenged.
3. Regularly Reviewing and Updating the Contract
A Marriage Contract in Ontario should not be viewed as a “set it and forget it” document. Circumstances can change significantly during the course of a marriage, and what was fair at the time of signing may not remain so.
- When to Review:
- After the birth of a child
- Upon acquiring or selling major assets
- Following a business sale, inheritance, or career change
- How to Update: Amendments should be made in writing, signed by both parties, and ideally reviewed with legal counsel to maintain enforceability.
