skip to main content
Firm News
Feb 1, 2019

Daniel Melamed of our Family Law Group speaks to the Globe & Mail about how to divorce-proof your family's wealth

The Globe & Mail View original

Build, spend, share. That’s the order of things for many prosperous Canadians, who typically work hard for years so they can live well and have money left over for their children.

This desire to share the bounty is now driving an intergenerational transfer of wealth worth an estimated $1-trillion, according to Strategic Insight, a Toronto research firm.

It’s also causing anxiety among some high-net-worth Canadians, however, whose adult children are married or living with a common-law partner.

A survey last year by Mississauga-based Investment Planning Counsel Inc. underlined this anxiety. Of the 400 affluent Canadians polled, close to 30 per cent said they didn’t trust their daughters- and sons-in-law to manage their heirs’ inheritance.

While the value of an inheritance or gift received during marriage is generally excluded when assets are being equalized between divorcing partners, income from these assets is not. For instance, rental income from inherited real estate or investment income from a portfolio built with inherited money would be considered part of a married couple’s joint assets.

This is where proper wording in a will or deed of gift comes into play, says Daniel Melamed, a family lawyer and partner at Torkin Manes LLP in Toronto.

One of the most effective ways to safeguard family wealth in case an heir gets divorced in the future is with a marriage contract, known commonly as a prenuptial agreement, says Mr. Melamed.

These agreements, which can set conditions around inheritances, family heirlooms or a family business and must be signed by both parties, are not easy to negotiate, he says. That’s why it’s a good idea to start discussing the need for a prenup during the early stages of a child’s serious relationship.

This article was originally published in the Globe & Mail. To read the complete article, please visit the Globe & Mail online

Related News

Firm News

Congratulations to our lawyers recognized in The 2020 Canadian Legal Lexpert Directory

Torkin Manes is pleased to announce that several firm members have been named as leaders in their fields in The 2020 Canadian Legal Lexpert Directory....
May 12, 2020
In the News

Laurie Pawlitza speaks to Canadian Lawyer on drug use in family law

Laurie H. Pawlitza Laurie Pawlitza speaks to Canadian Lawyer on cannabis drug use being hard to prove in family law.
Apr 24, 2020
Novel Coronavirus (COVID-19)

Adam Black speaks to CFRA radio to discuss the case of an Ontario man being barred from his home after failing to take COVID-19 risk seriously

Adam N. Black Adam Black of our Family Law Group speaks to Leslie Roberts of CFRA (Ottawa) to discuss the case of an Ontario man being barred from his home after fa...
Apr 15, 2020