Money & Marriage: Doing It Right

Before diving into the details, explore our interactive marriage and money preparation presentation. It covers money personality types, honest financial conversations, building a shared budget system, Canadian tax benefits for couples, and more — all in an engaging, step-by-step format.

Before the wedding (or moving in together — since common-law partners in Canada have similar financial rights and obligations), have the uncomfortable conversations. These aren't romantic, but skipping them creates real problems:

• What are your credit scores and any significant debts?
• What are your spending styles? (Spender vs. saver?)
• What are your financial goals? (Buy a house? Travel? Retire early?)
• Will you combine finances fully, partially, or keep them separate?
• How will you handle joint purchases and big financial decisions?
• What are your attitudes toward debt, investing, and risk?
• If one partner earns significantly more, how will you split expenses?

There's no single right answer — different approaches work for different couples. The key is mutual agreement and transparency.

The most popular approach for modern couples is "Yours/Mine/Ours": each partner contributes a set amount (often proportional to income) to a joint account for shared expenses (mortgage, groceries, utilities, savings goals), while keeping individual accounts for personal spending. No questions asked on personal purchases.

A joint budget isn't about control — it's about alignment. When you both know where the money goes, you can work toward shared goals instead of having money arguments.

1. 1List all household income (after taxes from both partners).
2. 2List all fixed expenses: rent/mortgage, insurance, subscriptions, loan minimums.
3. 3List variable necessities: groceries, gas, utilities.
4. 4Set a target for savings/investing (aim for at least 20% of combined income).
5. 5The remainder is discretionary — split how you choose.
6. 6Review together monthly: what worked, what didn't, what needs to change.

In Canada, prenuptial agreements (called "marriage contracts" in Ontario, "prenuptial agreements" in most other provinces, and governed by Quebec's unique civil law) are legal contracts that specify how assets and debts are divided in the event of separation or death. Provincial family law governs these agreements, so the rules vary across the country.

• One or both partners have significant assets, business interests, or inheritance.
• One partner has significant student loan or other pre-relationship debt.
• Either partner has children from a previous relationship.
• There's a large income disparity between partners.
• Either partner owns real estate or expects a large inheritance.

Property division rules differ by province: Ontario uses equalization of net family property, BC uses division of family property, and Quebec follows a partnership of acquests regime. A marriage contract can override default rules, but each partner should get independent legal advice for the agreement to hold up.

Marriage and common-law partnerships come with real financial advantages in Canada:

• Tax benefits — Canada does not have joint tax filing (each spouse files individually), but you can claim the spousal amount credit if your partner earns below the threshold, split eligible pension income, and contribute to a spousal RRSP to income-split in retirement.
• CPP and OAS — spouses can share CPP retirement pension payments to reduce overall tax. The OAS Allowance provides income support for a lower-income spouse aged 60–64. CPP also provides survivor benefits if a spouse passes away.
• Healthcare — Canada's public healthcare covers both spouses regardless of employment. Extended health benefits through an employer can often be expanded to cover a spouse or common-law partner for prescriptions, dental, and vision.
• Spousal rollover — assets can transfer to a spouse on death on a tax-deferred basis (capital gains are deferred until the surviving spouse disposes of them). RRSPs and TFSAs can also be transferred to a surviving spouse tax-free.
• Beneficiary designations — you can name your spouse as beneficiary on registered accounts (RRSP, TFSA, LIRA) for streamlined and tax-efficient transfers.
• Loan applications — lenders consider combined income, making larger mortgages accessible.