Common-law relationships can be complex given the uncertainty and intricacies they carry. Common-law relationship means two individuals living together as partners without legally getting married. Imagine moving in with your partner, quite lovey-dovey in the beginning, enjoying the excitement of building up a life together. But after a while disagreements start to creep in over the conjugal responsibilities and you end up separating due to disputes over finances and other seemingly manageable issues. In order to avoid going through such ordeal, it is advisable to sign up a cohabitation agreement with your common-law partner before starting to live together.
While it is not mandatory to execute a cohabitation agreement but doing so will back you up financially and emotionally in case differences arise. It is to be kept in mind that both partners can prepare and execute a cohabitation agreement and it will be legally enforceable, however, seeking a tailored legal advice ensures that the agreement is comprehensive and will equip you better for the future mishaps if the relationship breaks down.
What Is A Cohabitation Agreement And Why Do You Need One?
Simply put, a Cohabitation agreement is a legal document that outlines the rights and obligations of common-law partners. This agreement is an opportunity only for unmarried partners who live like partners/spouses to settle their duties and responsibilities. Cohabitation agreements can either be signed before starting to live together and even after you have moved in with your partner. However, it is wise to execute the cohabitation agreement before the common-law relationship begins to prevent the misunderstandings later on.
Key Elements Of A Cohabitation Agreement
A cohabitation agreement is primarily executed to settle over the financial responsibilities, property division and acquisition, and support obligations while being in the relationship and upon the termination of relationship. It is pertinent to note that cohabitation agreement does not include settlement over decision-making and parenting time. These issues are dealt separately under the Family Law.
- Property Division
The property that is acquired while being in the relationship will be considered a joint property of both the partners. A cohabitation agreement sets out the how the joint property or comingled property will be divided when the individuals break up. This may also include the division of matrimonial home.
- Debt settlement
While being in the common-law relationship, the partners may acquire debts. All such debts owed during the relationship will be considered shared debts. The partners may set out the mechanism for the settling of debts in the event of termination of the relationship.
- Support obligations
The partners may enlist the support obligations that each one of them has to carry out and also highlight the effect on the support obligations if they choose to part their ways. One may also include the option of alteration of support obligation subject to any future changes be it finance, health, employment, or otherwise.
- Marriage Clause
Typically, a cohabitation agreement automatically converts in to a marriage contract as per the Ontario Family Law Act if the partners get married. However, partners can specify whether the agreement would remain in effect upon marriage or terminated.
Contact The Lawyers At Ayaz Mehdi Professional Corporation!
A cohabitation agreement is essential to protect your rights during the continuance and in the event of breaking up of a common-law relationship. For assistance pertaining to creating cohabitation agreement or any family law matter, get in touch with us!
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