Last Updated February 2, 2024
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What is a Cohabitation Agreement?
A Cohabitation Agreement is a contract that establishes the rights and responsibilities of a couple that lives together but is not married.
Use this Cohabitation Agreement template to outline matters such as:
- Household expenses and shared finances
- Property and asset ownership
- Debt responsibilities
- Spousal support if the relationship ends
Our template also includes a Cohabitation Agreement Checklist to help you execute your document legally and complete an estate plan.
A Cohabitation Agreement is also known as:
- Adult interdependent partner agreement
- Common-law partner agreement
- Living together agreement
Who should have a Cohabitation Agreement?
If you’re living with your long-term partner but aren’t sure you’ll get married, a Cohabitation Agreement is a crucial document to have.
This is because your relationship may qualify as common law (also known as a de-facto relationship or domestic partnership) which can have big legal and financial impacts on your life.
(For something less personal, create a tenancy with our Residential Lease Agreement.)
Why is having a Cohabitation Agreement necessary?
Documenting your relationship with a Cohabitation Agreement is crucial for protecting your best interests and enforcing your rights. For example, as a common-law couple, you may be eligible for:
To qualify for these things, cohabiting couples may have to prove their relationship. A Cohabitation Agreement is valuable evidence if you’re ever questioned about your common-law relationship.
What’s more, this agreement can stop a battle before it starts. Imagine an unmarried couple that splits and disagrees on who gets what at the end of their relationship. Without a contract to refer to, the couple can easily end up in a lengthy and expensive legal dispute.
Even if the disagreement doesn’t go to court, the whole ordeal can be traumatic. Use a Cohabitation Agreement to specify property rights and financial responsibilities from the beginning of your relationship. That way, you can protect your best interests and stay transparent with your partner.
What’s the difference between a Cohabitation Agreement and a prenup?
Both of these documents can specify shared and separate property. However, couples create a Prenuptial Agreement to be valid specifically during and after marriage.
How do I write a Cohabitation Agreement?
Use LawDepot’s Cohabitation Agreement template to write your own document.
Of course, each partner should get independent legal advice to ensure the agreement is fair. However, you can save time and money by drafting this document yourself and bringing it to your lawyer for a quick review.
To complete our questionnaire and draft your Cohabitation Agreement, be prepared with the following information:
1. General details
You’ll need to provide some basic information, such as:
- Your and your partner’s names
- Where you live
- When you started (or will start) living together
If you live in Alberta, our template also gives you the option to include an Adult Interdependent Partner Agreement for more comprehensive protection as an unmarried couple.
2. Expenses
If you’d like, you can specify how you’ll divide household expenses. For example, you can:
- Pay all or some of the expenses from a joint account
- Split the expenses by percentage, type of expense, or according to each partner’s income
3. Assets
You can list the assets that each party owns and keeps separate. By doing this, there will be no question of who owns what if the relationship ends.
On top of that, you may list your current shared assets (e.g., a vehicle or your house). Generally, you can divide shared assets:
- Equally between the parties
- According to each partner’s financial contributions
- By paying half of the asset’s value to one party so the other can have sole ownership
Of course, you can also write specific terms for dividing shared assets. In this case, our questionnaire gives you tips for drafting this term.
4. Debt
Just like your assets, it’s crucial to document any shared or separate debts. For instance, if one party already owes a debt, they might specify that they will retain responsibility for repaying this debt on their own. Otherwise, you might want to state that responsibility for all shared debts will be divided equally between the partners.
5. Children
If you have dependent children from a past relationship or with each other, it’s crucial to name them in your Cohabitation Agreement. If you separate, the document clearly states that any parental rights and responsibilities will be governed by the laws of your province or territory.
6. Final details
Consider the legal rights that cohabiting couples may be entitled to, and address them in your Cohabitation Agreement if you’d like more control over your relationship.
For example, common-law partners are generally entitled to support if they’ve been living like a married couple for more than two or three years.
What’s more, they may also have inheritance rights if one person passes away without a Last Will and Testament.
You can let the law determine spousal support and inheritance rights, or you can specify your own terms in your Cohabitation Agreement. If your terms are fair and agreeable, courts will typically enforce them.
Are Cohabitation Agreements legally binding?
Yes, when executed correctly, courts generally uphold and enforce Cohabitation Agreements.
Like any contract, certain elements must be present for the document to be legally binding:
- Offer and acceptance: You and your partner create an offer when negotiating the cohabitation terms. When you both sign the document, you signal your acceptance.
- Consideration: Each party must exchange something of value and benefits from the agreement. In this case, you and your partner benefit from your living arrangement and spousal rights.
- Mutuality: You must have honest intentions to enter into the contract.
- Legality: None of the contract terms can break the law. For example, an agreement where the division of assets/debts only applies when one person does all the housework (and if they don’t, the other gets all the assets and no debt) would likely make the agreement unenforceable. This would be illegal as it would likely qualify as coercion.
- Capacity: You and your partner must be legal adults with mental capacity.
If someone wants to contest your Cohabitation Agreement, the onus will be on them to prove how it’s invalid in court.
Should I notarize my Cohabitation Agreement?
Canadian laws don’t require you to notarize your agreement. However, doing so helps verify the parties’ signatures and their intent to create a contract.
On the other hand, it’s crucial for each party to consult a lawyer to ensure the document is fair. LawDepot’s template includes a certificate of independent legal advice for your lawyer to sign after reviewing the document. (Most lawyers have the power to notarize your document too.)
You’ll also need two witnesses for each party’s signature. The same two people can witness both signatures, and your lawyer can also be a witness.