Ontario spouses sometimes use the terms “standstill agreement” and “postnuptial agreement” interchangeably, but they are not the same thing. They serve different purposes, carry different legal implications, and are used in different circumstances. Understanding the distinction matters — especially if you are trying to protect specific assets, freeze your financial position, or resolve issues during your marriage before they become part of a divorce proceeding.
What Is a Postnuptial Agreement in Ontario?
A postnuptial agreement — sometimes called a marriage contract entered into after marriage — is a domestic contract made between spouses who are already married. Under the Ontario Family Law Act, spouses may enter into a marriage contract at any time, whether before or during the marriage. When it is signed after the wedding, it is commonly called a postnuptial agreement.
A postnuptial agreement can deal with a wide range of financial matters, including:
- Ownership of property acquired before or during the marriage
- Division of property on separation, divorce, or death
- Spousal support — whether it will be paid, how much, and for how long
- Inheritance and estate planning coordination
- Debts and liabilities, including who is responsible for specific obligations
A postnuptial agreement is a forward-looking document. It sets the terms that will govern your financial relationship going forward — either permanently or in the event the marriage ends.
For a postnuptial agreement to be enforceable in Ontario, both spouses must receive independent legal advice before signing. The agreement must be in writing, signed by both parties, and witnessed. Courts will scrutinize agreements that were signed under duress, without full financial disclosure, or without proper legal advice.
What Is a Standstill Agreement?
A standstill agreement is a much more specific and temporary instrument. In the context of family law, a standstill agreement is typically used during separation proceedings or active negotiations to preserve the status quo while the parties work toward a final resolution.
In practical terms, a standstill agreement between separating spouses might:
- Freeze the value of specific assets — such as a business, investment portfolio, or property — at a particular date so that value increases or decreases during negotiations do not become a point of dispute
- Prevent either party from dissipating or disposing of marital assets while settlement discussions are underway
- Temporarily pause litigation timelines to give the parties time to negotiate without court pressure
- Establish temporary arrangements for shared property, business operations, or financial accounts during a separation period
Unlike a postnuptial agreement, a standstill agreement is not a final resolution of your financial affairs. It is a holding measure — a legal bridge designed to protect both parties while a more comprehensive settlement is being negotiated.
A Direct Comparison
| Feature | Postnuptial Agreement | Standstill Agreement |
|---|---|---|
| When used | During an intact or functioning marriage | During separation or active negotiations |
| Purpose | Long-term financial terms and property division rules | Preserve the status quo temporarily |
| Duration | Permanent (unless varied by the parties) | Temporary — until replaced by a final agreement |
| ILA required | Yes, strongly recommended and typically required for enforceability | Advisable but depends on scope and complexity |
| Governed by | Ontario Family Law Act (domestic contracts) | Contract law principles; may be incorporated into court orders |
| Covers | Property, support, inheritance, debts | Asset preservation, litigation timelines, interim arrangements |
Can You Use Both?
Yes. In fact, it is quite common for separating spouses to use a standstill agreement to stabilize the situation in the short term, while longer negotiations toward a separation agreement, divorce settlement, or court proceedings unfold. The standstill protects both parties in the interim.
A postnuptial agreement, on the other hand, is typically used when a marriage is still intact and the spouses want to address financial matters proactively — for example, when one spouse is starting a business, when there has been a significant inheritance, or when a prior prenuptial agreement needs to be updated to reflect changed circumstances.
Which One Do You Need?
The answer depends entirely on your situation:
- If you are married and your relationship is stable but you want to address financial matters now — such as protecting assets or updating an older prenuptial agreement — a postnuptial agreement is the appropriate instrument.
- If you are separated or in the middle of a dispute and you need to freeze assets, pause litigation, or establish temporary arrangements while you negotiate, a standstill agreement is what you need.
- If you are uncertain which situation applies to you, speaking with a family law lawyer will help clarify which instrument best fits your circumstances.
Getting Independent Legal Advice
Both types of agreements involve significant financial and legal consequences. Both are most enforceable when both parties have received independent legal advice — meaning each spouse has their own lawyer advising them before they sign.
Solvine Law provides independent legal advice and drafting for postnuptial agreements and domestic contracts across Ontario. If you are considering a postnuptial agreement or standstill arrangement, contact Solvine Law to discuss your options.