Divorce is a challenging and emotionally taxing process, especially when it comes to dividing assets. In Saskatchewan, family law follows specific rules for property division, which can significantly impact your financial future. If you’re concerned about protecting your assets in case of a divorce, it’s crucial to understand your legal options.
This guide will walk you through practical strategies to safeguard your wealth while staying compliant with Saskatchewan’s family laws. Whether you’re considering marriage, already married, or going through a separation, these tips can help you secure your financial stability.
Understanding Saskatchewan’s Matrimonial Property Laws
Before diving into asset protection strategies, it’s essential to understand how Saskatchewan divides property during a divorce.
1. Equal Division of Matrimonial Property
Saskatchewan follows the Matrimonial Property Act, which generally requires an equal (50/50) division of matrimonial property—assets acquired during the marriage. This includes:
- Family home(s)
- Bank accounts
- Investments
- Vehicles
- Pensions and RRSPs
- Businesses started during the marriage
2. Exempt (Excluded) Property
Not all assets are split equally. Some property may be excluded if it was:
- Owned before marriage (unless it increased in value due to joint efforts)
- Received as a gift or inheritance (unless it was used for the family, like depositing an inheritance into a joint account)
- Covered by a prenuptial or postnuptial agreement
However, courts may still consider these assets if fairness requires it.
3. Factors That Can Alter Property Division
While the default is a 50/50 split, a judge may adjust the division based on factors like:
- Length of the marriage (short-term vs. long-term)
- Financial contributions of each spouse
- Future financial needs (e.g., childcare responsibilities)
- Wasteful dissipation of assets (e.g., one spouse recklessly spending marital funds before divorce)
Now that you understand the basics, let’s explore how to protect your assets proactively.
6 Legal Ways to Protect Your Assets From Divorce in Saskatchewan
1. Sign a Prenuptial Agreement
A prenup (prenuptial agreement) is one of the most effective ways to define how assets will be divided in case of divorce.
How it helps:
- Clearly outlines which assets remain separate property
- Can protect family inheritances or business interests
- Reduces disputes during divorce
Key considerations:
- Both spouses must voluntarily agree with full financial disclosure
- Must be fair and reasonable—courts can overturn unfair agreements
- Should be drafted by a family lawyer to ensure enforceability
2. Consider a Postnuptial Agreement
If you’re already married and didn’t sign a prenup, a postnuptial agreement can serve a similar purpose.
How it helps:
- Allows couples to redefine property division terms mid-marriage
- Useful if one spouse receives a large inheritance or starts a business
Key considerations:
- Must be entered into without coercion
- Requires independent legal advice for both parties
3. Keep Inheritances and Gifts Separate
Inheritances and gifts are typically excluded from division—if handled correctly.
How to protect them:
- Deposit into a separate account (never mix with joint funds)
- Avoid using them for family expenses (e.g., don’t pay the mortgage with an inheritance)
- Document the source with bank records or a gift letter
Warning: If you use an inheritance to renovate the family home, it may lose its exempt status.
4. Protect Business Interests
If you own a business, divorce can threaten its survival. Here’s how to shield it:
Strategies:
- Prenuptial/postnuptial agreement specifying the business remains yours
- Keep business finances separate (no joint accounts)
- Consider a shareholder agreement (if in a partnership)
- Pay yourself a fair salary (avoid underpaying to hide assets)
Note: Courts may still award your spouse a share if the business grew during the marriage.
5. Use Trusts for Asset Protection
A family trust can be an effective tool to safeguard wealth.
How it works:
- Assets transferred to a trust are not personally owned, making them harder to divide
- Useful for high-net-worth individuals with complex estates
Limitations:
- Must be set up before marriage (or with a prenup)
- Courts may scrutinize trusts created solely to avoid division
6. Maintain Separate Bank Accounts & Property Titles
While Saskatchewan presumes equal division, keeping finances separate can help.
Best practices:
- Avoid joint accounts for personal savings
- Title property in one name (if possible)
- Document pre-marriage assets with appraisals or purchase records
Caution: Even if an asset is in your name, it may still be considered matrimonial property if acquired during the marriage.
What NOT to Do When Protecting Assets
While safeguarding wealth is important, some actions can backfire:
❌ Hiding assets – Courts penalize dishonesty, and hidden assets may still be discovered.
❌ Transferring assets to family/friends – This can be seen as fraudulent conveyance.
❌ Delaying divorce to drain accounts – Judges may order compensation for financial misconduct.
Always act transparently and consult a lawyer before making major financial moves.
Frequently Asked Questions (FAQs)
1. Can my spouse take my house in a Saskatchewan divorce?
The family home is usually split 50/50, regardless of whose name is on the title. However, if you owned it before marriage and kept finances separate, you might retain a larger share.
2. Is a verbal agreement enough to protect assets?
No—only written, legally binding agreements (like prenups) hold up in court.
3. How far back do courts look at financial records?
Courts can review several years of transactions, especially if fraud is suspected.
4. Can I protect my pension from divorce?
Pensions are matrimonial property, but a prenup or separation agreement can define how they’re divided.
Final Thoughts: Plan Ahead to Protect Your Wealth
Divorce can significantly impact your financial health, but with the right strategies, you can minimize risks. Whether through a prenup, trusts, or careful financial management, taking proactive steps ensures you retain control over your assets.
If you’re considering marriage or facing a potential divorce, consulting a Saskatchewan family lawyer is the best way to tailor a protection plan to your situation.
Did you find this guide helpful? Share it with someone who might benefit, or leave a comment with your questions below!
Need Legal Help?
If you’re navigating a divorce and need personalized advice, contact a Saskatchewan family law attorney today. Proper planning today can save you from financial stress tomorrow.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified lawyer for your specific situation.
