Please keep in mind that this is not legal advice.  The information provided herein is for educational purposes only. If you would like to get in touch with a lawyer to help you draft, interpret, negotiate or resolve a dispute about a joint venture, then you are encouraged to seek a professional (e.g. make a post on Dynamic Lawyers).  We have Toronto and Ottawa lawyers who can assist you in this regard (I would know, I’m one of them!).

So this blog will deal with the basics of a joint venture agreement or contract.  In other blogs, I’ll get down to the nitty gritty.

Definition
Plaint and simple, a joint venture is a contract between two or more parties to share resources, knowledge, skills, etc. towards a common objective.

Parties
As usual in these types of agreements, the parties are identified at the get-go (make sure this is done properly or else your contract won’t be worth the paper it’s written on!).

Recitals
This is the background story you want to tell that leads up to the formation of the joint venture.  It could go something like: Party X does Y and has Z.  Party A does B and has C.  The two would now like to join forces to make even more $$$.  So they’re agreeing to have a joint venture in accordance with the terms and conditions set out in the joint venture agreement or contract…

Definitions
It’s a good idea to set out the definitions you’re going to be relying upon near the top of the joint venture agreement (for ease of reference and good organization).  You could include definitions here about “Confidential Information” (assuming there will be confidential information passed between the parties as a result of the joint venture), what constitutes “Force Majeure” (e.g. act of God that relieves a party of liability under the agreement in certain circumstances), etc.

Business Structure
The joint venture agreement or contract will generally state how the joint venture is structured.  Is it simply two separate entities acting in concert through the joint venture agreement or contract?  Will there be a new corporation formed?  Will there be a partnership formed?  Will that partnership be a general or limited liability partnership?  For more discussion about the general forms of business one can structure in Ontario, check out this free information about business structures we’ve been accumulating.

Nature of the Relationship
So will the joint venturers be partners (capable of binding each other), corporate shareholders, or simply joint venturers (i.e. their rights and obligations are limited to the terms of the joint venture agreement or contract).

Term and Termination
How long will the joint venture last for and what events give rise to its premature termination?  Will the parties simply be able to give each other notice?  Will the joint venture dissolve by operation of law, by one party filing for bankruptcy, by one party attempting to illegally assign their interest in the joint venture to a third party, etc.?  Again, you should consult with a lawyer to find out what kinds of things typically go in this section.  Also important is what to do in the even of default.  Does one of the joint venturers become liable to pay the other if they are at fault?  Who determines fault and according to what test (e.g. sole and absolute discretion)?  There’s a lot to think about here…

Joint Venture Assets and Benefits
How will these things be deal with?  Will there be a percentage of ownership?  Will the benefits be based on revenues or profits?  Can these interests be assigned?

Operations
How will the joint venture be operated on a day-to-day basis?  Will the joint venture committee have the power to enter contracts on behalf of the joint venture?  Perhaps the joint venture committee will create a new corporation to take on a certain responsibilities and simply own equally the shares of the new corporation.  That new corporation would operate as a separate business, but its shareholders would be the joint venturers (who would elect the directors, who in turn would appoint the day-to-day officers).  This would be a good place to put reporting and record-keeping requirements too.

Joint Venture Responsibilities
Here, we get to the nitty gritty of who will be responsible for what in the joint venture. Separate paragraphs will be needed for each of the parties.

Joint Venture Management
Will there be a committee?  Will representatives from each of the parties be on the commitee?  Will there be a chairperson?  How will meetings be managed, votes and decision made?  Will there be direction from owners and delegation to the committee?  In my opinion, and as I’ve previously blogged about, businesses should be run as dictatorships with consultants, not as democracies (too many voices means things won’t get done).  

Representations and Warranties
What kinds of true, fair, and complete statements must the parties make to induce the other parties to enter the agreement?  The parties want to know that their joint venturer partners have the authorization and operational wherewithall to do what it is they are about to do.  If these representations and warranties no longer hold true, then what’s the consequence?  Notice?  Termination?  This should be spelled out here…

Liability and Indemnification
Will the joint venturers try to limit their liability from each other in connection with the joint venture?  Will they indemnify each other for their own wrongdoing – whether in contract, tort, negligence, misconduct, breach of statute or otherwise?

General Terms and Conditions
This section of the Joint Venture Agreement will deal with things like (which I’ve previously touched on in teh context of an independent contractor agreement):

• Notices
• Entire Agreement
• Governing Law
• Interpretation
• Assignment
• Waiver
• Cumulative Remedies
• Counterparts
• Enurement
• Entire Agreement
• Time of Essence
• Independent Legal Advice
• Force Majeure
• Severability
• Survival
• Currency

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There are over 17,000 individuals in Toronto who can call themselves a Toronto attorney.  Each Toronto attorney typically has his or her own specialty.  The day of the general practitioner is not as it once was (and is slowly fading away).  In fact, specialization is a preferred strategy to earn above-average returns in any given industry.  Besides, think of how hard it would be for a lawyer who ‘does it all’ to keep up to date with the changing laws in every given legal area.  It’s way too difficult and that’s where negligence cases may arise.

In any event, I thought I’d spend some time discussing the various types of Toronto attorneys that you can come across on a day-to-day basis.  Here’s the first breakdown of types of Toronto attorneys (please keep in mind that this list of the types of lawyers out there is not exhaustive):

• Toronto Real Estate Attorneys: help you buy and sell residential, investment, farm, cottage, recreational, condominium, and cooperative properties.  They also you get a mortgage financing and refinancing as well.

• Toronto Personal Injury Attorneys: help you litigate, settle, or otherwise resolve claims arising from:
  • accident benefits claims
  • dog bites
  • disability claims
  • medical malpractice
  • motor vehicle accidents
  • negligence actions
  • personal injury claims
  • product liability
  • slip and falls

• Toronto Business Attorneys: help you to incorporate and organize, merge/amalgamate, and dissolve your business.  They can help prepare, review, interpret, revise, negotiate, litigate, and resolve the following business documents:
  • shareholder agreement
  • partnership agreement
  • joint venture agreement
  • franchise agreement
  • commercial leases
  • business acquisitions
  • regulatory compliance
  • constructions contracts
  • employment agreements

• Toronto Wills and Estates Attorneys: they offer services from a basic will and powers of attorney  to more complicated tax-planning structures, such as inter-vivos trusts and estates freezes.  They can also help personal representatives in the administration and distribution of estate assets.  Finally, they can litigate on behalf of beneficiaries or the estate trustee on issues such as mental capacity of the testator, validity of a will, etc.

• Toronto Family Attorneys: they can help you with your marriage breakup by drafting a separation agreement.  They can also help you with issues such as divorce, spousal and child support, child custody, possession of the matrimonial home, and the equalization of net family property.
  

• Toronto Criminal Defense Attorneys: they can help represent you against government bodies that have charged you with criminal or provincial offences (e.g. careless driving), including:
  • DUI (driving under the influence)
  • assault
  • sexual assault
  • fraud
  • theft

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Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.   If you need legal advice with respect to drafting or reviewing Articles of Incorporation, you should seek professional assistance (e.g. make a post on Dynamic Lawyers).  We have Toronto business lawyers registered on the website who can answer your questions or help you draft and submit articles of incorporation for Ontario or Federal corporations.

Incorporating a business: a few words should be written about the roles and responsibilities of those involved with and acting on behalf of or for the corporation.

A corporation is created by having the initial directors file articles of incorporation in the jurisdiction in which the corporation is going to have its head office (provincial licenses will also be required to operate the corporation in particularly provinces).

After this, the directors have got a few things to do to get the corporation organized and up and running.  For example, they will need to pass a By-Law (which gives the corporation’s directors power-making authority), pass director resolutions, issue shares to shareholders (and have the shareholders subscribe to shares), have the shareholders ratify the by-law, have the shareholders vote in the new directors, etc.  Without these essential steps and documents, a corporation is not a legally operational entity.

The board of directors is comprised of individuals and typically a chairperson who oversee the affairs of the corporation , but not typically on a day-to-day basis.  The directors are typically paid to sit on the board, but it’s not a lot of money (as compared with the corporate officers) because they don’t meet that often and are not responsible for the day-to-day affairs of the corporation (as officers are).  The board is typically comprised of individuals with expertise in certain areas and who sit on a number of corporate boards.  They offer their insight and are accountable to the shareholders who vote them in.

For their part, shareholders are the owners of the corporation and have the power to vote in the directors of the corporation.  If there is only one sole shareholder holding all of the shares of the corporation then that person could vote in all of the directors.  It is possible to have only one shareholder and one director of a corporation.

Finally, officers of a corporation are appointed by the board of directors in order to oversee the day-to-day management of the corporation’s affairs.  The titles of officers are not that important, although traditionally most people have come to know officers as one of the following: President, Chief Executive Officer, Treasurer, Chief Financial Officer, Secretary, Vice-President, etc.  It does not really matter what these individuals are called.  Often, their titles, roles, and responsibilities will be outlined in a corporate by-law, which establishes their position and sets out their qualifications, powers, duties, etc.  Officers can be replaced by the board of directors, to whom they are accountable.

So to summarize: shareholders with voting power will vote in the directors on an annual basis (or sooner in certain circumstances), directors have the power to manage the corporation and they meet only a few times a year, and officers (e.g. CEO, VP, CFO, Treasurer, President, etc.) are the people who run the corporation on a daily basis and who are appointed (not elected) by the directors on an annual (or sooner in certain circumstances) basis.

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Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.  If you need legal advice with respect to creating a limited liability company, you should seek professional assistance (e.g. make a post on Dynamic Lawyers).  We have Toronto business lawyers registered on the website who can answer your questions or help you draft and submit articles of incorporation for Ontario or Federal corporations.

Want to know to incorporate?  First, if you’re trying to do it yourself, it’s pretty straightforward.  You just need to figure out which jurisdiction you’re trying to incorporate and then use a website service provider that will allow you to submit articles of incorporation, conduct a NUANS name search and submit a NUANS name search report, etc.  While the government fees are not high to incorporate (e.g. $200 for a federal corporation, plus $20 for a NUANS name search report), there are a number of questions arise which may lead you to seek out answers to questions relating to how to incorporate.

For example, you may have questions concerning what exactly goes into the Articles of Incorporation.  You can find a previous blog about Articles of Incorporation here. “Articles of Incorporation” is the name of the document that must be submitted to the Federal Government to create a corporation.  A corporation is a separate and distinct legal entity from its incorporators and from its owners, managers, employees, etc.  A corporation has its own rights and obligations; must file its own taxes (at both the provincial and federal levels); has its own income, assets, and liabilities; and can be sued and sue other parties.  These things being said, a corporation must act through other parties (e.g. owners, managers, employees, directors, etc.), who can in turn be held liable for their actions (e.g. negligence, breach of contract, etc.), although the corporation will likely be sued in these circumstances because of things like vicarious liability, insurance, and its otherwise deep pockets.

But simply submitting and having the government approve of your incorporate package is not sufficient to have your company up and running.  In fact, the cheap incorporation companies out there that promise to incorporate your company may not help you establish by-laws (which are power-giving or authority-giving documents that make corporate actions legal), prepare director and shareholder meetings and minutes (which establish accountability and transparency by letting stakeholders know what was decided upon), and finish explaining each party’s (i.e. shareholders, directors, officers, employees) roles and responsibilities vis-a-vis the corporation. Knowing how to incorporate is a good start,  but it’s always wise to consult with a business lawyer (e.g. by making a post on Dynamic Lawyers) with respect to questions about these and other things corporation related.

The roles of the various parties in a corporation will be discussed in the next post…

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Toronto law firms can help answer your legal questions, facilitate your transaction (e.g. business, real estate, wills and estates, family, etc.) or even represent you in court.  To find a Toronto lawyer or law firm, go to Dynamic Lawyers and make a post.  It’s free and anonymous and Toronto lawyers and law firms will respond to you with information and quotes for you to compare.

Here are some of the different types of law that Toronto law firms can assist you in:

• Accidents and Injuries: Involved in an accident where you suffered personal injury?
• Business: Need corporate or commercial agreements? Need to have a lawyer help you do a transaction?
• Charities and Not-For-Profit: Need to establish a Not-For-Profit corporation or obtain charity status?
• Civil Litigation – Higher Court: Have a serious legal claim that needs to be litigated in the Superior Court, Divisional Court, etc.?
• Civil Litigation – Small Claims Court: Have a legal claim (e.g. breach of contract, negligence, etc.) for less than $10,000?
• Constitutional / Human Rights and Freedoms: Challenging a law or government action / inaction?
  Criminal: Charged with a criminal offence? Appealing a conviction?
• Employment and Labour: Need an employment agreement? Unjustly terminated? Need to know your rights?
• Family: Going through a separation or divorce? Fighting to get custody or access? Dealing with spousal and child support?
• Government: Need to lobby the government? Need to resolve a dispute with a government agency?
• Highway Traffic Tickets: Charged with speeding or DUI? Need to fight traffic tickets?
• Immigration: Need to immigrate to Canada? Fighting against deportation?
• Insurance: Having difficulties with your Insurance company?.
• Intellectual Property: Need to register a copyright or trademark? Need help with a patent?
• Landlord and Tenant: Need a resolve a dispute? Need to know your rights?.
• Notary Public / Commissioner: Need to notarize or commission your documents?
• Real Estate: Need someone to facilitate your residential or commercial purchase, sale, or lease?
• Tax: Need help structuring your tax affairs? Need help resolving tax disputes with the Canada Revenue Agency?
• Wills, Estates and Trusts: Need a will? Need to update your will? Find out why having an up-to-date will is a must.

Try to consult with a couple of Toronto law firms and Toronto attorneys until you’re comfortable with whom you’re speaking with.  Toronto law firms differ in size, location, expertise, and reputation.  Go to Dynamic Lawyers and save time and money finding the right Toronto law firms and Toronto attorneys who specialize in the legal area you require!

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Types of lawyers.  There are lots in Toronto (as in every major city across North America).  Each has his or her own specialty.  The day of the general practitioner is not as it once was (and is slowly fading away).  In fact, specialization is a preferred strategy to earn above-average returns in any given industry.  Besides, think of how hard it would be for a lawyer who ‘does it all’ to keep up to date with the changing laws in every given legal area.  It’s way too difficult and that’s where negligence cases may arise.

In any event, I thought I’d spend some time discussing the various types of lawyers that you can come across on a day-to-day basis.  Here’s the first breakdown of types of lawyers in Toronto (please keep in mind that this list of the types of lawyers out there is not exhaustive):

• Toronto Real Estate Lawyers: help you buy and sell residential, investment, farm, cottage, recreational, condominium, and cooperative properties.  They also you get a mortgage financing and refinancing as well.

• Toronto Personal Injury Lawyers: help you litigate, settle, or otherwise resolve claims arising from:
  • accident benefits claims
  • dog bites
  • disability claims
  • medical malpractice
  • motor vehicle accidents
  • negligence actions
  • personal injury claims
  • product liability
  • slip and falls

• Toronto Business lawyers: help you to incorporate and organize, merge/amalgamate, and dissolve your business.  They can help prepare, review, interpret, revise, negotiate, litigate, and resolve the following business documents:
  • shareholder agreement
  • partnership agreement
  • joint venture agreement
  • franchise agreement
  • commercial leases
  • business acquisitions
  • regulatory compliance
  • constructions contracts
  • employment agreements

• Toronto Wills and Estates Lawyers: they offer services from a basic will and powers of attorney  to more complicated tax-planning structures, such as inter-vivos trusts and estates freezes.  They can also help personal representatives in the administration and distribution of estate assets.  Finally, they can litigate on behalf of beneficiaries or the estate trustee on issues such as mental capacity of the testator, validity of a will, etc.

• Toronto Family Lawyers: they can help you with your marriage breakup by drafting a separation agreement.  They can also help you with issues such as divorce, spousal and child support, child custody, possession of the matrimonial home, and the equalization of net family property.
  

• Toronto Criminal Defense Lawyers: they can help represent you against government bodies that have charged you with criminal or provincial offences (e.g. careless driving), including:
  • DUI (driving under the influence)
  • assault
  • sexual assault
  • fraud
  • theft

written by admin \\ tags: accident, accidents, business acquisitions, business lawyers, businessdefense, commercial leases, criminal, custody, family law lawyer, franchise agreement, injuries, injury, investment farm, joint venture agreement, lawyer, lawyers, lawyers in Toronto, litigants, marriage, negligence, negligence actions, negligence cases, negotiating, Negotiations, offence, partnership, personal injury claims, personal injury lawyers, personallawyer, real estate lawyers, separation, shareholder agreement, toronto, toronto motor vehicle accidents, toronto business, toronto personal injury, Toronto real estate Types of Lawyers, trusts and estates, vivos trusts, Wills and Estates

Before opening up my own practice, Carabash Law, I relied on Michael Porter’s 5 Forces Model (Competitive Strategy: Techniques for Analyzing Industries and Competitors) – which is used to assess the attractiveness of any given industry using five separate perspectives – to analyze the solo/small law firm industry in and around where I live.  Each of these 5 factors will be examined in turn.  This analysis also helped me to identify the key success factors for that industry (which I will discuss in the next blog).

1. Threats of New Entrants: Moderate
“The threat of entry into an industry depends on the barriers to entry that are present, coupled with the reaction from existing competitors that the entrant can expect. If barriers are high and/or the newcomer can expect sharp retaliation from entrenched competitors, the threat of entry is low” (source:  Competitive Strategy: Techniques for Analyzing Industries and Competitors, p. 27). Factors affecting the threat of new entrants in the targeted law firm industry primarily include the fear of “hanging out one’s shingle” and “going it alone”, the lack of legal and business management skills, knowledge, and experience, necessary operating costs and capital expenditures on office equipment/layout and information technology systems (e.g. research, documentation, billing, etc.), and accessibility to new clients.

The threat of new entrants into the targeted law firm industry seems relatively low. To establish a law firm, lawyers need to be licensed member in good standing of the Law Society of Upper Canada (which required getting into and completing law school, passing the Bar Admissions tests, and articling for 10-months), which acts as a significant first barrier to entering the industry. Throughout their minimum 7 years of university studies, law students accumulate large student loans and debts, which may take years to repay. Furthermore, many articling students and lawyers do not have the sufficient legal research, writing, presentation, and inter-personal skills to effectively market their services to the public in a meaningful way.

Establishing and managing a business also involves risk, time, expenses, and patience – something many people may not be fortunate to have in their lives (e.g. they may have a mortgage, be married with kids, have car payments to make, etc.).

Indeed, establishing a new business – but perhaps even more so a legal business which involves regulatory oversight from the Law Society of Upper Canada – involves a lot of additional management considerations which lawyers may be unfamiliar with and scared of. Lawyers may not, for example, understand or properly execute organizational theory, supply chain management, information technology systems, human resources managing, advertising and promotion, accounting and finance – in other words, areas of business management which affect their clients’ and their own practice.

Start-up costs are relatively low. Such costs typically include rent, a computer with internet access, a telephone/fax and related services, business cards, and other stationary (e.g. letterhead, paper, pens, stapler, etc.).

A successful firm will also require a steady stream of clients – something which is not guaranteed. Accessibility to clients may depend on word of mouth advertising, a convenient location, being situated near target markets, etc. A new firm would also have to coerce clients of existing law firms to switch over – something they may be reluctant to do because of their affiliation and sense of loyalty to one particular lawyer/firm.

Another factor affecting the threat of new entrants is the accessibility that potential entrants would have to the necessary labour pool. This, however, is not likely to create a high barrier to entry because the availability of administrative staff seems to be in abundance.

Finally, given the fragmentation and diversity of the targeted legal industry, newcomers need not expect swift or sweeping retaliation from established competitors in the form of price wars and special promotions and programs.

2. Bargaining Power of Suppliers: Moderately low
“Suppliers can exert bargaining power over participants in an industry by threatening to raise prices or reduce the quality of purchased goods and services. Powerful suppliers can thereby squeeze profitability out of an industry unable to recover cost increases in its own prices” (source: Porter, Michael E., “How Competitive Forces Shape Strategy” (Jul-Aug 1997), Harvard Business Review, p. 5). A supplier group is generally powerful if it is dominated by a few companies and is more concentrated than the industry it sells to.

The bargaining power of suppliers in the targeted law firm industry is moderately low. While some suppliers (e.g. of stationary) can be easily replaced with little transaction costs, other suppliers (e.g. application software, information management systems, research databases, etc.) can be difficult not to rely on. That being said, there are my alternative and sometimes free sources which can be used as a substitute to those suppliers. Moreover, suppliers of utilities (e.g. hydro, electricity, telephone, gas, internet, etc.), labour, and various services (e.g. cleaning, repair, vending, etc.) are generally either too small, widespread, or do not differentiate between this and other industries.

3. Bargaining Power of Buyers: Moderately low
“Buyers compete with the industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other – all at the expense of industry profitability” (source: Competitive Strategy: Techniques for Analyzing Industries and Competitors, p. 24) .

The bargaining power of buyers in the targeted law firm industry seems to be moderately low. Granted, lawyers do offer some services for which only they can deliver (e.g. representation before a court, public notary/commissioner for taking affidavits, etc.). Yet competitors such as other law firms, consulting companies, and paralegal firms can perform legal services but at a cheaper rate. Moreover, access to information through the internet may allow potential clients to engage in self-help (e.g. drafting a commercial agreement, registering a corporation, filing a divorce, etc.) or conduct their own legal research (e.g. www.canlii.org). These things being said, the firms in the targeted legal industry do not advertise their prices and individuals may not be able to distinguish one firm from another – ultimately hiring the first lawyer they find or are referred to. When it comes to promoting and protecting one’s legal rights and obligations, people may not be as open to shopping around because legal services may be seen as more than a commodity and more of a value-added service. Also, law firms impose relatively high switching costs (e.g. lawyers may demand payment for switching before handing the client’s file over to them) for clients who decide to take an active matter elsewhere before it is finally resolved.

Ultimately, buyers may not do as much shopping around for legal services as they might for retail products because of the lack of meaningful information available to them. Typically, clients hire a lawyer through word-of-mouth referrals, which means that they have little purchasing power.

4. Threat of Substitute Services: High
“Substitutes limit the potential returns of an industry by placing a ceiling on the prices firms in the industry can profitably charge. The more attractive the price-performance alternative offered by substitutes, the firmer the lid on industry profits” (source: Competitive Strategy: Techniques for Analyzing Industries and Competitors,p. 23).

The threat of substitute services is somewhat high: primary competitors can be found in thousands, while secondary competitors (such as consulting companies and paralegal firms) promote themselves for low-cost alternative legal services.

5. Intensity of Rivalry among Competitors: Low
“Rivalry among existing competitors takes the familiar form of jockeying for position – using tactics like price competition, advertising battles, product introductions, and increased customer service or warranties” (source: , p. 17).

The primary and secondary competitors generally have not distinguished themselves from one another and, as such, do not have an effective strategy. They do not seem, in their advertisements or other marketing communications materials, to understand or appreciate what the competition is doing to win clients over. And because they do not openly advertise their fees or offer warranties to compete, the intensity is relatively low. Given that most of the competitors can offer the same fitness classes and programs, they can only distinguish from one another based on price and non-price factors (e.g. quality of services, environment, brand image, etc.).

Michael Porter’s 5 Forces Model Conclusion
This 5 Forces analysis indicates that, overall, the attractiveness of the targeted law firm industry is considered moderately high. Despite the relatively low start up costs, low supplier and purchaser power, and low intensity among rivals, developing and managing a successful law firm has significantly high start-up costs which cannot be easily learned or accumulated.

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Some lawyers have been asking me: why do I get new posts e-mailed from Dynamic Lawyers and what do I do when I get a post in my email inbox?

Here’s the answer:

Instead of searching and browsing Dynamic Lawyers all day long to find the right post to reply to, Dynamic Lawyers has a feature that allows user posts to be automatically sent to lawyers who have registered to receive those posts – based on their City, Legal Area, and Matter(s). For example, if a lawyer registered in Toronto (City) indicates that they practice Criminal Law (Legal Area) and Assault (Matter), then they would receive all the posts that match those 3 criteria. Another example would be that a lawyer registered in Toronto (City) indicates upon registering that they practice Family Law (Legal Area) and Legal Separation (Matter) would receive all the posts that match those 3 criteria.

When that lawyer gets a new post in their inbox, it appears as a post and there’s a line that says at the top of the e-mail something like: “PLEASE REPLY ABOVE THIS LINE”. If the lawyer wants to respond to the user who made the post, then they would simply need to click ‘reply’ to the post and then reply above the line. When the lawyer sends the e-mail, it actually gets sent to us first (i.e. Dynamic Lawyers) and we automatically forward the response to the user’s e-mail (to maintain anonymity).

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The Do’s

As a family lawyer I’ve seen lots of families work to adjust to a new life with two households. It’s hard for everyone but kids really need help to adjust to their new reality. Here are 11 do’s and don’ts that you can use to help your kids adjust:

1. Do take care of yourself! This is the most important tip for you. Divorce is hard; it is easy to let good habits slide. Make yourself eat well, try to get enough sleep, and call a friend to schedule something fun to do. Better yet, call 3 friends and schedule 3 fun things to do.

2. Do encourage your kids to love your former partner and encourage their relationship with him or her, no matter how difficult that is. Kids want contact and love from both of their parents. Prompt them to call him or her and let them have a decent amount of time with him or her, including precious holiday time so they can see their grandparents, aunts, uncles and cousins from the other side of the family.

3. Do reassure your kids that they are not to blame. Sometimes kids feel responsible for the family breakdown. Also explain that while adult love may die, your love for them will not die.

4. Do live close to your ex if at all possible. You may wish the ex would move to Timbuktu so that you’d never see him or her again, but the exact opposite is what’s best for your kids. If they forget their homework or their skates or their favourite sweater, this can be a big problem if you live far apart or even across town. But if you live a couple of blocks apart, it’s easy for them (or you) to pop over and pick up the forgotten item. It also means that if the kids want to come say hi to you when they are with the other parent, it’s no big deal. They can just ride their bike over for a few minutes. It’s hard to overstate how good it is for kids to have ease of movement between their homes.

5. Do maintain basic communication with your ex-spouse. It teaches your kids a lot about being civil even in difficult circumstances and it will make your life easier. Some basic examples:

• It makes organizing access and coordinating schedule changes much easier if you can email or phone each other
• It helps you coordinate gift-giving. If you’re not talking to your ex, odds are pretty high you’ll both give one of the kids the same gift at Christmas or on a birthday
• It prevents the kids from playing the two of you off against each other
• It makes it easier to ask for a favour when you need it. And you will need them when you’re sick, have a family emergency, need to travel for business, want to go to your high school reunion or – here’s hoping – want to go on a romantic get-away with a new love.

6. Do spend special time alone with each child. Creating these happy moments and memories is especially precious to them when their family is breaking up.

And now the don’ts:

7. Don’t let your kids hear you criticizing their other parent. They will feel conflicted and, eventually, very resentful if you criticize someone they love. If you need to vent, take it to your adult friends when the kids can’t hear.

8. Don’t press your kids for information about what goes on when they are with your ex. That is their time with him or her. If they want to tell you about it they will but otherwise let them enjoy their relationship without feeling like you are scrutinizing it.

9. Don’t use your kids as confidants and don’t let your kids become your caregiver. Divorce is hard; when you need help, ask the adults in your life. And remember – most people like to help.

10. Don’t ask your children how they want to divide their holidays, how much they want to see their other parent or any other question that forces them to choose between their parents . You and your ex are the parents; it’s your job to make those decisions.

11. And finally, don’t over-indulge your kids. This may be tempting because of guilt about the separation or because an unhealthy competition develops with your ex-spouse about who has the best toys or who takes the kids on the best trips. Don’t fall into this trap. Kids need limits.

It may be hard to do all this but if you try, your kids will benefit. Good luck!

written by Ingrid van Weert \\ tags: adjusting to separation and divorce, family, Family Law, lawyers, opposition, parents, relationships, separation

For most people there is nothing that can take the romance out of an engagement faster than the request for a marriage contract. Somehow marriage contracts seem inconsistent with the commitment that is the essence of marriage. However, sometimes a marriage contract may be a good idea.

A marriage contract defines rights and obligations during marriage or on separation, divorce or death. In the absence of a contract, these rights and obligations are governed by the family law legislation in effect in Ontario. Because it must be applied to many different fact situations, the legislation is not tailor-made. It also gives a lot of discretion to judges, making it quite unpredictable on occasion. Many different judges, with many different points of view, hear family law cases. Finally, the legislation can change. Ontario has had two major revisions of its family law legislation since 1978. The laws that would govern your rights if you were to divorce today may not be the laws that will govern your rights if you divorce in the future.

A marriage contract permits couples to design a tailor-made result rather than being governed by legislation. They may do this because the legislation does not seem fair to them, because it does not suit their needs or because they want to try to avoid litigation if the marriage ends. Seen in this light, marriage contracts are not cynical; they are simply a tool couples use to define and tailor their rights.

For instance…

There are many reasons to contract out of the legislation. In general terms, and subject to some important exceptions, the legislation provides that spouses jointly share their net increase in wealth from the date of marriage to the date of separation or death. If one spouse is very wealthy at the time of the marriage, the legislation could result in a windfall to the other spouse. Through a marriage contract the spouses could agree to an unequal division in the increase in wealth. This does not mean the poorer spouse gets nothing; the spouses can negotiate a fair result. For instance, they could agree that the property division would vary depending on the number of years the marriage lasts.

A couple may also wish to contract out of the property provisions of the legislation if they are both financially independent and don’t want any claim to the other’s assets, or if either spouse has children from a previous marriage. In the latter case a marriage contract can ensure that the majority of the spouses’ assets goes to his or her children and not to the second spouse. As in the first example, this does not mean that the spouse is treated unfairly; the marriage contract can balance the interests of the spouse with the interests of the children.

Marriage contracts do not need to be signed before the marriage. They can be negotiated at any time. Sometimes they actually help couples in trouble make their marriage work. If a couple has experienced troubles in their marriage they may want a marriage contract going forward. Being clear about what would happen if a relationship ends (ie. knowing you will be treated fairly) can help some couples rebuild the trust they need to stay together.

What cannot be contracted

One large advantage marriage contracts have over legislation is flexibility – they can deal with one issue or asset or many issues and all assets. With the exceptions noted below, the potential terms of a marriage contract are limited only by the imagination. However, marriage contracts cannot deal with custody of or access to children or a spouses’ rights to possession of the matrimonial home. Further, any provisions in a marriage contract relating to the support, education or moral training of a child may be disregarded by a court if it believes the provision is not in the child’s best interest.

Cohabitation agreements

The law in Ontario also recognizes cohabitation agreements. People who are living together, or who intend to live together, may enter into a contract outlining their rights and obligations during or after their cohabitation, or on death. Cohabitation agreements are often a very good idea because the law in Ontario does not do much to protect the property rights of common law spouses. If you are in a common law relationship it would probably be a very good idea to define your property rights by contract. However, these contracts must be drafted carefully because unless it provides otherwise, a cohabitation agreement becomes a marriage contract if the parties marry each other.

In short, if your partner proposes a marriage contract or a cohabitation agreement don’t assume it means they don’t love you as much as they should. There are lots of times such contracts make sense. In fact, you may want to consider one yourself.

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Ingrid van Weert is a compassionate and dedicated family lawyer with extensive experience in both divorce law and in all forms of dispute resolution available in the divorce process – negotiation, mediation, arbitration and litigation. She can be reached at ingrid@ontariodivorcelaw.ca or at 416-214-1501.

written by Ingrid van Weert \\ tags: agreement, arbitration, cohabitation Family Law, contracts, court, custody, engagements, fairness, family, judges, lawyer, lawyers, litigants, litigation, major, marriage, mediator, negotiating, Negotiations, relationships, revisions, separation, what to include in a marriage contract