A cohabitation agreement is a legal document that provides the same protections for couples living together without being married as a marriage contract does for married couples. It is particularly important for unmarried couples who want to outline their rights and responsibilities regarding finances, property, and other important matters, both during the relationship and in the event of a breakup.

What is a Cohabitation Agreement?

A cohabitation agreement is a legal contract between two people who live together or plan to live together in a long-term relationship, but who are not married. The agreement addresses:

• Property Division: How property will be divided if the relationship ends.
• Support Obligations: Whether one party will owe spousal support to the other in case of separation.
• Debt and Financial Responsibilities: How debts and expenses incurred during the relationship will be handled.
• Inheritance Rights: It may also address how the couple’s assets will be handled in the event of death.

Why is a Cohabitation Agreement Important?

1. Clarification of Rights: It ensures that both parties have a clear understanding of their rights and obligations regarding shared property, finances, and debts.
2. Protection in Case of Separation: A cohabitation agreement helps to avoid lengthy and costly disputes over property and support obligations if the relationship ends.
3. Prevents Misunderstandings: By putting everything in writing, the agreement can prevent misunderstandings or disputes down the line, particularly concerning shared property or financial support.

Key Considerations in Creating a Cohabitation Agreement

• Full Disclosure: As with other family agreements, full financial disclosure is critical for the agreement to be enforceable.
• Independent Legal Advice (ILA): Both parties should seek separate legal advice to ensure that their interests are properly represented.
• Fairness and Voluntariness: The agreement must be fair and entered into voluntarily without any undue pressure or influence.

Enforcing a Cohabitation Agreement

A cohabitation agreement is legally binding as long as it is executed properly and both parties have given informed consent. However, just like marriage contracts, a court can set aside a cohabitation agreement if it finds that it is unfair, unconscionable, or was signed under duress.

If you need help with drafting or reviewing a cohabitation agreement in Ontario, LexCounsel is here to provide expert legal assistance. We can ensure your rights are protected and that your agreement reflects your intentions. Contact us today for tailored advice on cohabitation agreements that safeguard your interests and offer peace of mind.