In Ontario, the law permits unmarried persons who live together to enter into contracts that specifically outline their rights and obligations in their relationship. These are known as cohabitation agreements. Unmarried couples often choose to enter into a cohabitation agreement when they share a living space for the protection of both parties.
A cohabitation agreement can help prevent uncertainty, litigation, and additional costs in the event of the breakdown of the relationship. Ontario specifically recognizes cohabitation agreements under the Family Law Act, which sets out the rules for domestic contracts and the formal requirements for enforceability.
At Gelman & Associates, our Toronto family law lawyers help clients with the negotiation, drafting, review, and enforcement of cohabitation agreements across Ontario. To connect with our cohabitation agreement lawyers in Toronto about your situation, contact us today.
What are the Benefits of a Cohabitation Agreement?
According to the latest 2021 census figures, common law relationships continue to be a significant part of family life in Ontario and across Canada. For this reason, more couples are choosing to clarify their expectations in advance rather than wait for conflict to arise later down the line. This is especially important because common law spouses do not automatically have the same property rights as married spouses under Ontario family law.
Property Division for Common Law Couples in Ontario
The distinction in relationship status matters. Couples who live together, but are not married, are not included in the section of Ontario’s Family Law Act, which states that property accumulated during the marriage must be equalized.
In some circumstances, an equalization claim can be pursued by unmarried parties through common law trust doctrines or claims focusing on unjust enrichment. Common law partners may also be entitled to spousal support and child support in the case of the dissolution of the relationship. However, a cohabitation agreement is one of the best ways for an unmarried couple to define in advance how property, support obligations, and other financial matters will be handled if the relationship ends.
A robust agreement prepared by a Toronto property division lawyer can also reduce misunderstandings about ownership of a home, contributions to joint expenses, treatment of debts, expectations around support, and estate-related intentions. For many couples, the value of a cohabitation agreement is not only legal protection but also clarity and peace of mind.
When Should You Consider a Cohabitation Agreement?
A cohabitation agreement is often worth considering:
- Before moving in together
- After purchasing a home together
- When one partner already owns real estate
- When one person has children from a prior relationship
- When there are significant savings or family gifts to protect
- When one partner owns a business or expects a future inheritance
For some couples, a cohabitation agreement is also a practical step to take before marriage, since the agreement can later continue as a marriage contract if they marry each other.
The Characteristics of a Cohabitation Agreement
A cohabitation agreement is generally created between two people who are cohabiting or intending to cohabit and who are not married to each other. It can be used by common law spouses and by couples planning to move in together. It is similar in some respects to a marriage contract or a prenuptial agreement, but it is designed for unmarried couples.
Under section 53 of Ontario’s Family Law Act, parties to a cohabitation agreement may agree on matters such as ownership in or division of property, support obligations, the right to direct the education and moral training of their children, and other matters in the settlement of their affairs. The same legislation also provides that if the parties later marry each other, the cohabitation agreement may automatically become their marriage contract.
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What is Included in a Cohabitation Agreement?
The terms of a cohabitation agreement provide assurances to each party on matters such as:
- Rights to share in the other’s property
- Support obligations to each other (excluding child support)
- Responsibility for debts or expenses
- Ownership of specific assets
- Treatment of future purchases
- Entitlement to share in the other’s estate on death
- And possibly more
Depending on the couple’s circumstances, a cohabitation agreement may also address how joint household expenses will be handled, what happens if one party contributes to property owned by the other, whether one person is moving into a home already owned by the other, and how business interests, inheritances, or family gifts will be treated.
It’s important to note that a cohabitation agreement can turn into a marriage contract and continue to be valid if the parties marry at some point in the future. In addition, there are also limits to the scope of provisions a cohabitation agreement can set out. Domestic contracts in Ontario cannot conclusively determine parenting or child support issues in a way that prevents a court from acting in a child’s best interests. The court may disregard domestic contract terms dealing with children where appropriate.
How Our Toronto Cohabitation Agreement Lawyers Can Help
At Gelman & Associates, our Toronto cohabitation agreement lawyers help clients prepare cohabitation agreements that reflect their real circumstances and future goals. That may include drafting a new agreement, reviewing a proposed agreement, negotiating terms, or advising on whether an existing agreement is likely to be enforceable.
We take the time to understand each client’s financial picture, living arrangements, relationship history, and concerns about the future. Our goal is to create practical, clear agreements that reduce ambiguity and are more likely to stand up if later challenged. Where needed, clients can also connect with related team members, such as our Toronto divorce lawyers, Toronto property division lawyers, or Toronto spousal support lawyers.
Why Proper Drafting of Cohabitation Agreements Matters
Not every agreement will stand up if it is poorly prepared. Under section 55 of the Family Law Act, a domestic contract must be in writing, signed by the parties, and witnessed in order to be enforceable.
In addition, domestic contracts can sometimes be challenged where there was inadequate financial disclosure, duress, unconscionability, or other serious fairness concerns. Ontario courts continue to review these issues closely when parties later dispute the validity of an agreement.
That is one reason why many clients also obtain independent legal advice before signing a cohabitation agreement they prepare with their partner. Independent legal advice can help show that each party understood the nature and consequences of the agreement and had an opportunity to protect their own interests.
If You Are In A Common Law Relationship, Contact Our Toronto Cohabitation Agreement Lawyers for Assistance
If you are in a common law relationship, planning to move in together, or would like to protect assets before cohabitation begins, contact Gelman & Associates for advice about drafting, reviewing, or enforcing a cohabitation agreement.
Gelman & Associates serves clients across Ontario and offers practical family law guidance tailored to your circumstances. To discuss your situation, call (844) 736-0200 or contact the firm through its online contact page.
