Cohabitation Agreements
If you're thinking of moving in with someone, learn about cohabitation agreements first
What Are They?
In Ontario, couples who choose to live together without marrying—commonly referred to as common-law partners—do not automatically receive the same legal rights as married couples, especially concerning property division.
A cohabitation agreement is a legally binding contract that outlines each partner's rights and responsibilities during the relationship and in the event of a separation. This agreement can specify how property and debts are handled, detail spousal support arrangements, if any, and clarify financial obligations, providing both parties with clarity and protection.
Importantly, while a cohabitation agreement can address many financial aspects, it cannot predetermine all matters related to children, as these are determined based on the child's best interests at the time of separation, if the matter goes to court.
Benefits
​A well-crafted cohabitation agreement offers numerous advantages. It allows partners to define how assets and debts will be managed, reducing potential conflicts and misunderstandings. For individuals bringing significant assets into the relationship or anticipating future financial gains, the agreement can protect these interests. Additionally, it can set spousal support expectations, providing certainty and potentially avoiding costly legal disputes. By setting clear terms, couples can ensure that both parties' intentions are respected, fostering a sense of security and mutual understanding.
Crafting a Valid Agreement
To ensure a cohabitation agreement is legally enforceable in Ontario, certain formalities must be met. Your lawyer will explain these to you and ensure that sufficient financial disclosure from both partners is made.
While it's possible to draft an agreement independently, seeking independent legal advice is highly recommended. Legal professionals can ensure that the agreement reflects both parties' intentions and complies with Ontario's legal standards, providing peace of mind and reducing the risk of future disputes.