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Why craft a cohabitation agreement?

Keeping your assets protected in a common-law relationship

Over the past decade, divorce trends have been decreasing worldwide. Despite a growing Canadian population overall, fewer marriages and more cohabitation is a rising trend in Canada. Census data reports that common-law relationships rose by 13.9% and lone-parent families’ rose by 8% from 2006 to 2011.

Family law lawyers at Epstein & Associates in Newmarket, Ontario, understand a couple may choose not to marry, but live in a common law relationship. However, this does not mean that your assets should not be protected. Our family law experts have extensive experience drafting cohabitation contracts and can help explain how to protect personal assets and plan your estate before living with a partner.

Akin to a prenuptial agreement, a cohabitation agreement is a document that stipulates the details of spouses living together in a conjugal relationship outside of a marriage. The contract protects each party from unnecessary costs, fees and litigation in the case that the relationship falls apart. A cohabitation agreement will help determine who will keep specific assets that have been jointly purchased if cohabitation breaks down and separation is required. The contract may be drafted in such a way that it becomes a marriage contract should nuptials take place.

However, periods of physical separation does not necessarily end a relationship if there is mutual intention to try the relationship again. Laws related to cohabitation are sometimes complicated. Making the decision to move in with a partner requires serious thought and consideration and is no less important than deciding to get married.

When common law spouses separate in Ontario there is no automatic entitlement to an interest in property as when married couples separate and divorce. However, a cohabitation agreement may give both spouses the same property rights as a married couple as the agreement is a legally binding.

When creating cohabitation agreement you should consider the following:

  • How to divide and share finances
  • How to divide property
  • How to divide pensions
  • Who will be responsible for what debts

Let our family law experts at Epstein & Associates guide you through the process of creating a cohabitation agreement that will protect both you and your partner’s economic interests. Contact us today for a complimentary consultation.