A cohabitation agreement in Canada is a legal contract between two people who are living together (or planning to), but are not married. It helps protect both partners’ rights and define responsibilities during the relationship—and especially in the event of a breakup or death.
Here’s why you should consider having one:
1. Clarifies Property Ownership
- Defines who owns what going into the relationship (e.g., house, car, investments).
- Helps prevent disputes about assets acquired before or during cohabitation.
- Can specify how jointly purchased property will be divided.
2. Protects Against Property Claims
In certain jurisdictions in Canada, common-law couples don’t have automatic property rights like married couples. In other jurisdictions, common-law couples do have property rights. However, partners may still make legal claims based on:
- Unjust enrichment
- Constructive trust
- Incorrect factual assertion
A cohabitation agreement can prevent costly legal battles by waiving or limiting such claims in advance—or serve as a shield against a claim.
3. Outlines Support Obligations
- Can state whether spousal support will be paid if the relationship ends.
- Helps avoid surprise financial obligations down the road.
4. Protects Family and Estate Interests
- Useful if one partner has children from a previous relationship or significant personal wealth.
- Can coordinate with your will or estate plan to ensure your wishes are followed.
5. Offers Legal Certainty
- Saves time, money, and stress if the relationship ends.
- Reduces the emotional toll and ambiguity in already difficult circumstances.
What Can Be Included in a Cohabitation Agreement?
- Division of property and debts
- Spousal support terms (or waiver)
- Responsibilities during the relationship (e.g., living expenses)
- What happens if the couple gets married (some agreements convert to marriage contracts)
Legal Requirements
Both parties must sign voluntarily and provide full financial disclosure.
The agreement must be in writing and signed by both parties.
