1. What is a Cohabitation Agreement?
A Cohabitation Agreement is a legal contract that defines the rights and responsibilities
of a couple living together in a committed relationship without being married.
It can address matters such as:
Household expenses and shared finances
Property and asset ownership
Debt responsibilities
Spousal support if the relationship ends
This agreement is also known as:
Adult Interdependent Partner Agreement
Common-Law Partner Agreement
Living Together Agreement
A Cohabitation Agreement can also be part of broader estate planning and relationship
documentation.
2. Who Should Have a Cohabitation Agreement?
Any couple living together in a long-term relationship, especially without immediate plans to
marry, should consider a Cohabitation Agreement.
This is particularly important if your relationship may qualify as common law (also referred to as
a de facto relationship or domestic partnership), which can carry significant legal and financial
consequences. Such agreements provide clarity and protection in areas of property, support, and
inheritance.
3. Why Is a Cohabitation Agreement Important?
Having a Cohabitation Agreement is essential for protecting individual interests and minimizing
disputes. It can help you:
Prove the existence of a common-law relationship if required
Clarify financial responsibilities and property division. Establish terms for spousal support or rights
upon separation avoid lengthy and costly legal battles if the relationship ends
It also serves as evidence of your relationship status in situations involving taxation, benefits, and
inheritance rights.
4. How Is a Cohabitation Agreement Different from a Prenuptial Agreement?
Both documents deal with property and financial matters, but they differ in timing and purpose:
A Cohabitation Agreement is for unmarried couples living together.
A Prenuptial Agreement is created before marriage and comes into effect once the couple is legally
married.
5. How Do I Create a Cohabitation Agreement?
A Cohabitation Agreement should be tailored to your specific relationship and circumstances. It
should include:
a) General Information
Full names of both parties
Address and jurisdiction
Date of cohabitation or intended cohabitation
b) Expenses
Specify how household expenses will be handled
Options include splitting expenses equally, proportionally by income, or from a joint account
c) Assets
List separately owned assets to remain individual property
Identify jointly owned assets and determine how they will be divided upon separation
Asset division can be equal, based on contribution, or negotiated otherwise
d) Debts
Specify responsibility for individual and joint debts
This helps avoid disputes and protects one party from another’s prior liabilities
e) Children
If either party has children from a previous relationship or together, include provisions
acknowledging parental responsibilities
Legal rights regarding parenting will remain governed by applicable provincial or territorial law
f) Final Clauses
Consider whether to include terms about spousal support or inheritance rights
Common-law partners may have legal entitlements depending on how long they’ve cohabited
6. Are Cohabitation Agreements Legally Binding?
Yes, a Cohabitation Agreement is legally binding if it meets standard contract requirements:
Offer and acceptance: Both parties must agree to the terms and sign the agreement
Consideration: There must be mutual benefit from the arrangement
Mutual intent: Both parties must intend to create legal obligations
Legal purpose: The terms must not violate any laws or public policy
Capacity: Both parties must be of legal age and mental capacity
If contested, the burden of proving the agreement is invalid lies with the party challenging it.
7. Should the Agreement Be Notarized?
Notarization is not legally required in most Canadian provinces, but it is strongly recommended.
It helps:
Verify the authenticity of signatures
Confirm that both parties understood the agreement at the time of signing
Additional considerations:
Each party should obtain independent legal advice to ensure fairness
Two witnesses are required for each party’s signature
A lawyer can act as a witness and often as a notary
Including a certificate of independent legal advice strengthens the enforceability of the agreement.