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Successions and wills

Protecting one's patrimony in case of a break-up

Statistics reveal a devastating reality: between 50% and 60% of first common-law relationships or marriages and up to 80% of second such relationships end in a break-up. And, following the ensuing romantic and family dramas, come those of the estate.

If the notary cannot do anything to save the couple and the family from the obstacles that will arise along their path, he or she can play an extremely important role in protecting the couple’s wealth and, consequently, in the “success” of the period following the break-up.

Notaries can ensure that the break-up of the relationship does not result in the disappearance of the assets that the members of the couple have together accumulated up to that time. The immediate concern in a separation is that each of the members of the couple and their children preserve, as much as possible, the same quality of life.

By reminding the parties of this concern, the notary enables couples to escape from a vicious circle of confrontation in order to more easily find ways to reach a mutually acceptable compromise. This objective makes it possible for the notary to lead the couple down a road where they will be sensitive to protecting the assets they have accumulated together and dividing them in an orderly fashion.

The notary can get involved before or after the break-up. One of the tools used by the notary in this process, in a preventive manner, is the wealth inventory. It lists all of the couple’s assets and liabilities: movable and immovable property such as a home, cottage, car, RRSP and pension plan. If prepared beforehand, this wealth inventory will be updated to reflect the situation at the time of the separation. The listing will enable a couple to clearly understand the value of their assets and the extent of their debts before beginning to divide or, if necessary, transfer them. The notary will then direct the couple’s attention to the wealth protection measures that need to be contemplated in the wake of the separation: the mandate in case of incapacity, will, life insurance, etc.

For the notary, protecting wealth also means helping the couple negotiate an amicable agreement with no winner—and no loser. This is done through an agreement where the family wealth is divided in a fair, transparent manner, in the best interest of each of the spouses and the children, and which promotes an effective reorganization of the family’s affairs in order to preserve the bulk of those assets that had been collectively accumulated until the time of the separation.