ONTARIO JUDGE UPHOLDS MARRIAGE CONTRACT

The recent Ontario case of Singh v. Khalill, 2023 ONSC 6324, heard by Justice Black of the Superior Court of Justice offers valuable insights into the judicial considerations surrounding the validity of Marriage Contracts and Cohabitation Agreements (aka Prenuptial Agreements).

The central issue in Singh v. Khalill revolved around a Marriage Contract signed by the parties in 2017. Mr. Singh sought to invalidate the contract, while Ms. Khalill asserted that it was valid and enforceable.

?Justice Black summarized the legal framework guiding the court's decision.

?First, he referred to section 56(4) of the Family Law Act, R.S.O. 1990 which outlines the factors to be considered in assessing the validity of a Marriage Contract. These include the circumstances of the contract's signing, the disclosure made by the parties, their understanding of the agreement, and whether the contract adheres to contract law. Notably, the judge stated that the court retains discretion, after considering these factors, to determine whether to set aside the contract or uphold it.? Crucially, the burden of proof lies with the spouse seeking to invalidate the Marriage Contract, which, in this case, was Mr. Singh. This means that he needed to establish, through evidence and argument, that the contract should be set aside based on the criteria specified in section 56(4) of the Family Law Act.

?After a comprehensive examination of the factors outlined in section 56(4), Justice Black concluded that the Marriage Contract in question was valid and enforceable. The judge found no basis to set it aside, highlighting the importance of the legal principles surrounding domestic contracts.

?Justice Black outlined the key elements influencing the decision as follows:

?1. ???? Disclosure and Understanding: The court took into account the early issues in the marriage, such as Mr. Singh's alleged lack of contribution to the household and financial matters. Ms. Khalill's concerns about undisclosed information and her proactive approach to protecting her assets through a Marriage Contract played a pivotal role in the court's analysis.

?2.????? Timing and Execution: The dispute over when Ms. Khalill presented the agreement to Mr. Singh raised questions of credibility. However, the court, after careful consideration, accepted Ms. Khalill's evidence regarding the timing and the circumstances of presenting the Marriage Contract to Mr. Singh.

?3.????? Legal Advice and Signing: Despite having access to legal advice and ample time, Mr. Singh admitted to not reading the Marriage Contract before signing it. The court emphasized that parties are expected to use due diligence in understanding the terms of agreements, and Mr. Singh's failure to do so weighed against his position.

?4.????? Financial Implications: The subsequent actions of the parties were aligned with the terms of the Marriage Contract. They maintained separate finances and assets, demonstrating an adherence to the agreement they willingly entered into.

?5.????? Late Allegations and Credibility Concerns: Mr. Singh's last-minute change in argument, suggesting dismissal of both motions and sending the matter to trial, raised concerns about the credibility of his claims. The court noted inconsistencies in Mr. Singh's assertions about the Marriage Contract and other aspects of his personal history.

?Justice Black referenced legal principles articulated in Harnett v. Harnett, 2014 ONSC 359, emphasizing the general inclination to uphold valid domestic contracts. The analysis highlighted the importance of due diligence by parties, the absence of exploitation or unequal bargaining power, and the discretionary nature of setting aside a contract under section 56(4) of the Family Law Act.

?In conclusion, Singh v. Khalill serves as a compelling illustration of the meticulous scrutiny applied by courts in assessing the validity of prenuptial agreements. Parties entering such contracts must be diligent, transparent, and proactive in understanding and negotiating the terms. The case also underscores the significance of credibility, timely disclosure, and adherence to legal principles in the determination of the enforceability of Marriage Contracts.

CASE LINK: https://www.canlii.org/en/on/onsc/doc/2023/2023onsc6324/2023onsc6324.html?autocompleteStr=Singh%20v.%20Khalill%2C%202023%20ONSC%2063&autocompletePos=1

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Jessica Brant, B.A., J.D.,?is Mohawk from the Tyendinaga Territory (Mohawks of the Bay of Quinte First Nation). She supports her community by providing legal advice and guidance to those in need. Jessica has a Mohawk Language and Culture Diploma from Queens University. Indigenous knowledge, teachings and values help guide all aspects of her life.?Jessica is an Associate Lawyer at Benmor Family Law Group and?was honoured as the recipient of the 2024 Emerging Excellence Award by the Toronto Lawyers Association