Domestic Contract Prenup? or Reciepe for Break Up?

Not just for the rich and famous

The engagement party has come and gone, the wedding date is looming and your head is full of thoughts about flowers, vows and first dances. This is already a stressful period and would be the worst time to deal with a complicated prenuptial agreement, right?

Or perhaps you’ve been living with your partner for a few years now. Your relationship is becoming serious and you’ve discussed a future together. Despite being committed to one another, you don’t believe that marriage is your next step, which means a marriage contract wouldn’t apply to you, right?

Maybe you were recently married. In the excitement of the wedding planning and honeymoon, you and your spouse didn’t get around to meeting with lawyers to write up a prenuptial agreement. And now that the wedding is over, it’s too late to sign anything, right?

Wrong. In the three circumstances listed above, a domestic contract of some type may not only be appropriate, it might also be smart financial planning. In fact, 37.9% of new Canadian marriages will end in divorce before their 30th wedding anniversary*; a marriage contract is simply like taking out an insurance policy in case a marriage ends.

Often known as prenuptial agreements, cohabitation agreements, or marital agreements, domestic contracts are written because one or both partners do not want the standard rules concerning family property, the family home, spousal support, and pension rights to apply to them. Instead they establish a contract that specifies what each partner is entitled to in the event of a breakdown in the relationship and/or the death of one of the parties.

In what circumstances should a domestic contract be considered? A domestic contract is often recommended for a person who owns a business or has a large net worth they wish to protect that would otherwise be shareable, by statutory rules, at the time of separation. Nowadays though, more people are entering into these agreements for other reasons. Whether it’s to protect future earnings or an expected inheritance, domestic contracts are not just for celebrities anymore.

At what point in a relationship can you enter into a domestic contract? The most commonly mentioned domestic contract is a prenuptial agreement which, by definition, is signed well in advance of the wedding day by a couple planning to become legally married. There are other domestic contracts though, such as cohabitation agreements and marriage contracts that are applicable for common-law couples and in some instances, couples who are already married.

When is a domestic contract valid? To be enforceable, domestic contracts should be in writing, signed by both parties, and witnessed. Each of the parties should have received independent legal advice. As well, each party must provide complete financial disclosure of assets and income.

What about common-law rights? The rights of common-law partners who do not have a written domestic contract vary quite dramatically across the country. In the majority of provinces common-law partners don’t have any right to a division of family property, and even where they do, it is never too late to enter into an agreement – the parties can generally agree to release their family property rights. To find out about the rules that apply where you live, it’s best to consult with a lawyer in your home province.

What do I do if I want a domestic contract? To reduce legal costs, complete a full inventory of individual assets, income and financial obligations including debt, prior to consulting with a lawyer. Your first step should be to call us to get a complete picture of your financial plan.

*Source: Statistics Canada, Canadian Vital Statistics, Divorce Database and Marriage Database

John Scholl B. Mathematics, CGA, Consultant - Investors Group Financial Services Inc.

200 - 24 Queen Street East, Brampton, Ontario L6V 1A3 Wealth Management & Financial Planning

Phone: (905) 450-2891 X529 Toll Free: 1 (866) 799-2223 x529 Cell (416) 731-3660 Fax: (905) 450-9747

Improvement of the West Don Lands

In a recent blog posting I asked if Garth Hated Toronto or just Realtors . I am flattered that Garth noticed a realtor's blog

An enthusiastic supporter added this comment to my blog; Why would Garth's negativity on buying a poorly designed 349 sq. ft. coffin in the middle of some highway ramps lead you to believe that he must hate Toronto or realtors? Would you tell your kids to buy trash like that for $180K?

On the heels of this exchange about employment for Toronto during a recession, infill housing for residential use, Housing within the city core to promote urban renewal and improved transit this item was released today from a gathering of rather learned people.

Governments of Canada, Ontario and Toronto Celebrate New Affordable Housing in West Don Lands

TORONTO, Nov. 29 /CNW/ - Funding of almost $23 million for 218 new affordable rental housing units for low-income families, seniors and singles was announced today in Toronto.

Lois Brown, Member of Parliament for Newmarket-Aurora, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC); and George Smitherman, Member of Provincial Parliament for Toronto Centre, on behalf of the Honourable Jim Watson, Ontario's Minister of Municipal Affairs and Housing; along with City of Toronto Councillor Pam McConnell, Ward 28 Toronto Centre-Rosedale, on behalf of Mayor David Miller and City Council, and David Mitchell, Chair, Toronto Community Housing, made the announcement.

"Our government is helping Canadians during these tough economic times and giving hope to seniors, families and individuals who need quality, affordable housing that meets their needs," said MP Brown. This investment is possible through our government's Economic Action Plan, that stimulates the economy and creates jobs during this global recession For Ontario, this includes a $1.2 billion joint investment."

"This project represents our government's commitment to ensuring residents in Toronto and throughout Ontario have access to affordable housing," said MPP George Smitherman. "It will not only add significant support to the Province's efforts to reduce poverty, but will also mean the creation of hundreds of jobs for our workers."

"The West Don Lands neighbourhood will be a wonderful addition to our city. This community will be a beautiful, sustainable, and welcoming place for everyone to live, work, and play. I am very pleased that the City of Toronto contributed $4.3 million in waived development fees and charges and property tax exemptions to help create affordable housing for seniors and families." said Councillor McConnell, vice-chair of the Affordable Housing Committee.

"There remains a vast need for more affordable housing and Toronto Community Housing applauds the three levels of government for responding to this need," said Toronto Community Housing chair David Mitchell. "It's a great opportunity to help us achieve our mandate of providing quality housing for low-and moderate-income singles, families and seniors in Toronto."

The Government of Canada wants to ensure that Canadians on fixed incomes can live with independence and dignity and remain in their communities, close to family and friends. Canada's Economic Action Plan provides $400 million, over two years, to build new rental housing for low-income seniors. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.

Canada's Economic Action Plan builds on the Government of Canada's commitment in 2008 of more than $1.9 billion, over the next five years, to improve and build new affordable housing and help the homeless.

Today's announcement celebrates funding for 218 units in two projects located at King and River Streets that will provide a total of 243 units of affordable rental housing for low-income families, singles and seniors. These homes are being developed by Toronto Community Housing and are part of the West Don Lands revitalization. The City of Toronto is increasing the number of affordable homes to 243 from 218 by directing an additional $7.49 million to this development from the provincial Developing Opportunities for Ontario Renters (DOOR) funding program, made possible through the federal Housing Trust.

Ontario is moving quickly to implement this additional funding. The province has already approved more than $172 million for construction-ready projects, which will improve access to affordable housing for low-income families, seniors and persons with disabilities across the province. It will also create jobs and strengthen local economies. To find out more about affordable housing in Ontario, visit www.mah.gov.on.ca.

No opinion was made about whether you should buy or not buy. No one has a gun to your head. Do or Do NOT. The final answer is that Toronto is a net destination for immigration, education, jobs and a safe haven for investment dollars. The market value is the market value. It is land, cost of construction, lot Levies, taxes, permits, materials, design, marketing and yes, the ever evil profit.

Consumers today realize that buying has always been a good hedge against inflation, and will continue to do so. You cannot live inside a mutual fund.

Here is the ultimate irony. If no one bought what they built, They wouldn't build it.

If you do not want the west Don Lands, I have readily available product on Humber Bay Shore at California Condos in Mystic Pointe

Lets recap, Greening the environment, providing low income housing, increased employment, Improved city density (population growth) Please show me where that is wrong?

To slander everything Toronto

Garth Turner in his blog the Greater Fool "Hot on the heels of realtors bashing each other and throwing elbows over a new condo development in mid-town Toronto comes more evidence dark forces have taken over the GTA". Have a look for yourself about the remarks.

The comment that I found interesting is here;

It’s called River City. The ‘river’ in question is a channelized concrete ditch full of dead water called the Don. And in a crook of roadway, where the six-lane divided Don Valley Parkway leaps skyward to join the elevated Gardiner Expressway, on acres which sat for decades as an industrial wasteland, will rise River City. I will let you imagine.

One feature of this oasis of five buildings and 6,000 suites to be built over the next three years, is a four-acre park. But not just any park – this is the world’s first park built under highway ramps. Yes, under the Richmond-Adelaide ramps, which are choked with rush hour traffic and form one of the main arteries into The Big Smoke, will be bucolic bocci courts, children’s playgrounds and all the pigeons you’ll ever want to meet.

Now, I believe in Urban renewal. I believe in Rapid Transit. I am a proponent of neighbourhood and community. Population shifts in Canada and net migration to the Golden Horseshoe make us a destination. Endless suburbs to the east, west and north are proving to be a transit and gridlock fiasco.

So we need to revisit the Cherry Street side of the city, and the revitalization of the Don River wetlands. To that point I had done some reading, as a curious realtor, as to what might be.

Lower Don Lands Wins International Best Futuristic Design Award

Lower Don Lands plans have received the 'Best Futuristic Design Award’ in one of the world’s leading sustainability focused development industry design competitions. The Keating Channel Precinct, the Lower Don Lands’ first planned community, was recognized at the Building Exchange (BEX) Conference. The fifth annual BEX International Awards, held in partnership with the World Green Building Council, promote global standards for environmentally sound buildings, large-scale developments and infrastructure. Judged by a panel of leading experts, the awards celebrate sustainability, innovation, efficiency and collaboration in the built environment and demonstrate consideration of the issues surrounding climate change, sustainable communities and future legacies.

The Lower Don Lands is also the subject of another recent video created by Waterfront Toronto. The video, which is available for viewing on YouTube, features a flip animation that outlines the plans for the Lower Don Lands. View the video.

Winning an Award? This is a vastly different perspective than I read from the Greater Fool. Toronto is a growing and congested city that needs to deal with real issues of urban planning, hydro generation, How will we move Millions of people daily to work and back?, water cleanliness and quality of life of the residents.

This site on the Lower Don Lands could have been the Olympic Village had we won the bid. What would the fool have said then, Toronto's economy doesn't need tourist dollars? While we obviously read the same news sources, maybe I am just a glass half full person.

Please read Garth's Blog. But Please also read the comments and rhetoric. Make an informed decision. You are welcome to comment here also/