Mega-celebrities Taylor Swift and Travis Kelce are now officially married. Given that they have an estimated combined net worth of about US$2.2 billion, many people are speculating: Did they sign a pre-nuptial agreement?
Here at our Law Firm, we certainly don’t know the answer for sure – and the details of any agreement are presumably private anyway. But when two people bring staggering wealth, valuable assets and separate careers into a marriage, the question is hardly surprising.
The same question is worth asking much closer to home.
In Ontario, what people commonly call a “pre-nup” is more correctly called a “marriage contract”, which is one type of domestic contract. It can allow a couple to decide, in advance, how certain financial issues will be dealt with if their marriage ends.
Here are some of the most important things I tell people to consider:
1. A Pre-nup is Not Just for Celebrities or the Mega-wealthy
You do not need a billion-dollar music career or an NFL contract to benefit from a marriage contract. A prenup may be worth considering if one or both of you own a home, have significant investments, own a business, expect a substantial inheritance, or are entering your second marriage.
- Start Early
One of the worst times to negotiate a marriage contract is days before your wedding.
Last-minute agreements create pressure. They may also raise later questions about whether one of you had enough time to obtain advice and make a genuine decision. The conversation should begin long before your invitations are sent.
3. Financial Disclosure Matters
A marriage contract should not be based on guesswork. Each of you should provide meaningful information about your income, assets and debts. Neither of you can make an informed decision about your financial rights without understanding what is at stake.
4. No Sharing Lawyers
Each of you needs your own lawyer, to give you independent legal advice about the agreement, and about the rights you may be giving up. One lawyer should never act for both of you, when negotiating your marriage contract.
5. The Matrimonial Home Requires Special Attention
Ontario Family Law gives your current or intended matrimonial home special treatment. This can create unexpected results if one of you owned that home prior to getting married. If you are bringing a house into the relationship, it’s vital that you obtain specific advice from an experienced lawyer. Don’t assume that prior ownership will determine your entitlement – it doesn’t.
6. Business Owners: Plan Ahead
If either of you has a growing business at the time of your marriage, it can become a major source of conflict if you separate.
Your marriage contract may need to address how any business interests will be treated. This can reduce the risk of a future dispute over valuation.
7. Inheritances Can Be a Blind Spot
People often assume that an inheritance will always remain theirs.
The reality can be more complicated, particularly if either of you inherited funds that were mixed with other money, or that were used in connection with a matrimonial home.
8. A Pre-nup Should Fit You, as a Couple
There is no universal agreement that works for everyone. You and your future spouse may want to protect any pre-existing assets you each have, while sharing any wealth you accumulated together. You may want to craft special rules for a family business, a cottage or future inheritances.
The agreement should be tailored to reflect the realities and goals of your actual relationship.
9. Spousal Support Needs Careful Thought
Marriage contracts may address spousal support, but this is an area where careful drafting and legal advice are especially important. The circumstances of your marriage can change dramatically over time.
10. A Pre-nup is a Financial Planning Tool
Some people object to the concepts of a marriage contract, thinking it reflects pessimism or a prediction that the relationship will fail.
I don’t see it that way. For many couples, it is simply a way to have difficult financial conversations while the relationship is strong, and both people can make decisions calmly.
The Takeaway
Financially, Taylor Swift and Travis Kelce may operate on a stratospheric scale that few couples will ever experience. But the central question is the same for anyone entering marriage with assets, a business or significant financial expectations: Do both of you understand what marriage will mean for their financial future?
In Ontario, that is a question worth asking long before the wedding day.
