A cohabitation agreement is essentially the same thing as a marriage contract, but it's designed for people who intend to live together, or who are already living together and wish to set out some rules about property that is acquired, and which would need to be dealt with should the relationship end. Cohabitation agreements can also establish some rules for how the couple manages their day-to-day living, not just their separation. The agreement can set out the parties' rights and obligations to one another, and can deal with everything from who gets certain household items, to where the children will live.
Canadian law also recognizes cohabitation agreements for couples of the same or opposite sex that currently, or intend to, live together. A cohabitation agreement is automatically converted into a binding marriage contract if the couple decides to marry.
It is important to know that despite the honest intentions of the parties that the agreement be permanent at the time it is signed, the contents of a cohabitation agreement may be evaluated by the court on the application of a party to the agreement, and sometimes changed, or "varied.” if the court considers the agreement to be unfair. There are reasons why a court might vary an agreement; it depends on the individual circumstances of the parties and the nature of their agreement. It is important to know that the making of a private contract between two people does not strip the court of its jurisdiction to make an Order dealing with the same subjects, perhaps even in a manner contrary to that set out in the agreement.
While your partner may wish you to sign the agreement, there is no legal obligation to enter into such an agreement. With or without an agreement, remedies are almost always available under the common law, or the Family Relations Act. In Ontario, a common-law partner will sometimes have the same rights as a married partner in certain circumstances (i.e. usually after living in a common-law relationship for three years, and in some cases, after proving a financial dependency): Couples should be aware that they may also be able to pursue alternate claims to property.
Putting a cohabitation agreement in place will help common law couples avoid costly law suits and reduce many arguments over financial assets resulting from a relationship breakdown.
Subscribe to Sharon's articles(Visit Sharon's Website)
Sharon has over 25 yrs experience
in the financial services industry.
She holds the Certified Financial
Planner (CFP) and the Financial
Divorce Specialist (FDS)
designations. Sharon is a member
of the Academy of Financial Divorce
Specialists and has completed
training to help divorcing couples
reach a negotiated settlement
around financial issues. Sharon is
instrumental in helping and
supporting her clients to gain
clarity and direction. She works
with women experiencing transition
in their life, whether from job
loss, the loss of a life partner,
or a relationship through
separation or divorce. Sharon
provides education and guidance and
takes the time to get a clear
understanding of her clients’
goals. She makes a difference in
people’s lives by designing a
Financial Plan which includes all
aspects of Financial Planning
including building wealth,
protecting clients and their
families against illness and death,
cash flow, retirement and tax
planning. She has always put her
clients’ needs above her own with
encouragement and support no matter
what obstacles life throws in their
way. She has helped many families
achieve a comfort level in their
financial lives, knowing she is
looking out for their best
interest. Sharon is also an
experienced speaker on topics
relating to women such as “Insights
to Financial Transitions”, “Worry
or Wealth”, “Financially Planning
Your Divorce” and more.
Sharon Alderson is a Silver author on EvanCarmichael.com
Sharon Alderson's
Complete
List Of
Personal-Finance Articles
If you enjoyed this article, get Sharon Alderson's Complete List of Personal-Finance Articles For FREE!
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company!
Video produced by Phanta Media
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Subscribe to Sharon's articles
Startegic Plan Creation
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
