Co-Habitation Agreements
Cohabitation Agreements are domestic contracts designed to protect the rights and interests of couples who live together without being married. These legally binding and enforceable agreements outline the rights, responsibilities, and obligations of each partner in the event of separation, including issues such as property division, support payments, and other financial matters.
Cohabitation Agreements are often put into place before cohabitation begins, but it can also be finalized after cohabitation has happened. If your circumstances change at any time during your relationship, it may be a good idea to review any existing Cohabitation Agreement to consider if more reasonable, up-dated terms are needed. Cohabitation Agreements can be converted into a Marriage Contract, if the parties decide at a future date to marry.
Do I need one?
Cohabitation Agreements provide clarity and certainty for couples who choose to live together outside of marriage. They also allow couples to maintain a degree of independence and autonomy in their financial affairs while living together. Without a formal Agreement in place, disputes over property and financial matters can arise if the relationship ends. By outlining each partner's rights and obligations upfront, Cohabitation Agreements can help prevent costly and emotionally draining legal battles in the future.
Unlike married spouses, there is no legislated process for how common-law spouses divide property and assets, which means there is no statutory protection for a cohabiting spouse’s interest in property to which the other spouse holds title. Upon separation, common-law spouses must rely on common law and equity claims to divide property and assets.
Get in touch with us to understand why this difference is important.
What can be included?
Cohabitation Agreements in Ontario can cover a wide range of issues, including:
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Property Division: Specify how property acquired during the relationship will be divided in the event of separation.
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Support Payments: Outline whether one partner will be required to provide financial support to the other following separation.
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Debt Responsibility: Determine how any debts incurred during the relationship will be divided.
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Pensions: Decide on how to divide pensions among the individuals
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Pets: Decide who will retain custody of any pets acquired during the relationship.
Cohabitation Agreements are put into place to protect financial considerations, therefore can’t include:
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Any terms relating to parenting arrangements (i.e. parenting time or decision-making responsibility). These issues are only resolved after the separation has taken place.
Requirements of a Cohabitation Agreement
In Ontario, Cohabitation Agreements are recognized and enforced under the Family Law Act. For a Cohabitation Agreement to be legally valid and enforceable, certain requirements must be met:
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Voluntary: Both parties must enter into the Agreement voluntarily, without coercion or duress.
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Full Disclosure: Each party must provide full and honest disclosure of their assets, liabilities, and financial circumstances.
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Independent Legal Advice: It is advisable for each party to seek independent legal advice before signing the Agreement to ensure they understand its implications and consequences.
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Fairness: The Agreement must be fair and reasonable at the time it is made and at the time it is enforced.
Why choose us
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Expertise: Our team has extensive experience negotiating and drafting Cohabitation Agreements. We stay updated on the latest legal developments and strategies to ensure the best possible outcomes for our clients.
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Compassionate Approach: Our team takes a compassionate and empathetic approach, providing personalized guidance and support tailored to your unique needs and circumstances.
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Client-Centered Service: We take the time to listen to your concerns, understand your objectives, and develop a customized legal strategy designed to achieve the best possible results for you and your family.
It is essential for couples considering a Cohabitation Agreement to seek independent legal advice to ensure their rights and interests are protected. At Luk Law we have extensive experience negotiating and drafting Cohabitation Agreements that are tailored to your unique circumstances and needs.