As details of the divorce filing between Nicole Kidman and Keith Urban dominated the headlines in September, many were shocked to learn of the couple’s pre-nuptial arrangements — and just how much Urban is expected to be paid when the proceedings are finalized.
Urban stands to collect US$11 million (C$15.5 million) from a pre-nuptial clause (1) that specified he would gain US$600,000 (C$846,000) for every year he remained sober during their marriage, though the couple has opted out of spousal support (2). This is not unlike the uncoupling of Mary J. Blige and Martin Isaacs, or Jennifer Lopez and Cris Judd, where each woman had to pay her former husband US$30,000 (C$42,000) per month and about US$14 million (C$19,700), respectively (3).
However, this isn’t just a quirky Hollywood arrangement. As more women begin to outearn men, they are beginning to discover that their wealth and assets are on the line when they divorce a lower-earning spouse.
Here’s what you need to know about the law in Canada, and what you can do to protect your assets in the event that your marriage ends.
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Women’s earning power in Canada
As of 2022, women earned 84 cents to every dollar that men earned in Canada (4). However, the pay gap is shrinking as women become increasingly more likely to earn bachelor’s degrees compared with men (5).
In families, the effects of this are already on display. Data from the Vanier Institute show that in 2022, women were the breadwinners in 32.8% families (excluding same-gender couples), up from 25.9% in 2000 (6). Over the same period, women being the sole breadwinner increased from 7.8% to 10.7% in this type of family.
Divorce settlement facts
While no large-scale data exists for Canada, MarketWatch reports that a growing number of women are paying alimony and child support (7), according to a 2018 survey of 1,650 lawyers by the American Academy of Matrimonial Lawyers (AAML).
Some 54% of the attorneys surveyed have observed an increase in mothers paying child support in the last three years, and 45% noticed an uptick in women paying alimony.
AAML president Madeline Marzano-Lesnevich said in a statement that, “Many women, no matter how educated, how professional, or how modern they are, are surprised to learn that they might have to pay alimony."
“It’s something that has been ingrained for generations that fathers pay alimony.”
Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?
Spousal support laws
In Ontario, a spouse of any gender may be entitled to spousal support if the couple was married, cohabiting as a couple for at least three years, or were in a relationship of ‘some permanence’ and had a child together (8).
However, the spouse seeking support must demonstrate that their responsibilities during the relationship prevented them from building their career. Otherwise, they must prove that the separation or divorce will leave them in need of financial support that the spouse has sufficient income or assets to provide. If the couple has an existing legal agreement (like a prenup) that agrees on spousal support, then the court will also likely rule in favour, regardless of any changed circumstances.
Protecting your assets
As more women build wealth either before or during their marriages, a pre-nuptial or pre-marital agreement (prenup) is a common way to plan how to share assets in the event of a divorce. Couples can even sign a postnup agreement — which can be useful if your financial circumstances have changed dramatically during your marriage.
This is especially important since, in the absence of a prenup or postnup, all assets owned by either spouse in a marriage, including the marital home and investments, are generally considered family property subject to equal division, according to BMO (9).
And while shared accounts are practical for married couples that help build financial trust, keeping some of your money separate can make things easier to unmingle in the event of a divorce. A separate emergency fund will also be useful for paying your living expenses if you move out prior to your divorce.
There are other financial factors to be mindful of when getting a divorce, such as calculating a new retirement number if a couple were contributing together, understanding the rules of dividing retirement assets and developing a new retirement strategy.
In the immediate future, you will want to focus on building short-term liqiudity to cover an emergency without having to dip into retirement savings, whether or not you have enough cashflow to cover monthly expenses, and whether you will have to sell a co-owned property or buy a partner out.
While Kidman may be on the hook for the payment terms in her pre-marital agreement, the actor and producer is at least one woman who can afford it. She was named the eighth highest paid star of 2024 (10), bringing in US$31 million (C$43,700) through both her TV shows and films. Other women may not be as lucky.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Hello! (1); E! News (2); McCabe Russell (3, 10); Canadian Women’s Foundation (4); Statistics Canada (5); Vanier Institute (6); MarketWatch (7); Canada (8); BMO (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.