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A prenuptial agreement can protect a family farm

Statistics Canada reported in 2009 that the probability of divorce in Canada is around 41 percent. The rate of people splitting up for individuals who live together or are in second marriages is higher.

Farmers generally have about the same percentage of divorce rates. One accountant in London, Ontario, though, says that among his clients who are farmers, the divorce rate is much lower than the typical divorce rate. However, there is a lot at stake when it comes to property division for many farmers. Farms that have been in the family for multiple generations can be lost to a spouse, but many people simply do not think about getting a prenuptial agreement before they get married.

When you talk about what will happen to your assets when you divorce, it's not implying that your relationship is not going to succeed. It is simply a way of protecting what is rightfully yours. Even though the rate of divorce is lower among farmers, it doesn't make the financial and emotional impact of a breakup any easier.

Marriage contracts allow you to negotiate a settlement in case of a divorce ahead of time. Both parties have their own lawyers, so his or her rights are protected. As for the laws governing prenuptial agreements, they can vary from province to province. They are usually complicated, but the end result is that property acquired or value created during the marriage will be equally shared when the couple splits.

While that doesn't include the family farm, any increase in the value of the farm during the marriage will be considered marital property. This is one of many reasons why a lawyer's guidance while creating a prenup or getting a divorce is so important.

Source: Country Guide, "I do, and I don’t," Maggie Van Camp, accessed Dec. 10, 2015

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