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Cohabitation Agreements

Written by: Sharon Alderson

Article Overview: In Canada, there remains a great deal of misunderstanding about the rights and responsibilities of common-law couples. There are no statutory property rights for common-law couples regardless of how long they have cohabited. There is a presumption that each person keeps the property that is in his or her name and property that was acquired jointly is divided in accordance with contributions to its acquisition. For this reason, division of property can become long and expensive arguments.

Cohabitation Agreements

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.

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Article Tags: cohabitationagreement, financialassets, relationshipbreakdown, rights
Referred by: http://www.womenforwomen.ca



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