What is a Cohabitation Agreement?

A cohabitation agreement is appropriate for parties who wish to cohabit, but would like to determine in advance issues such as division of property, spousal support or other matters associated with the termination of their relationship. A cohabitation agreement may stipulate how much support will be paid, who will retain which assets, and buy out provisions for a jointly owned home. These are only some examples of the types of things spouses may address in a cohabitation agreement. Each agreement is tailored to the specific needs and goals of the parties.

Is a Cohabitation Agreement right for you?

A cohabitation agreement is a good option for those wishing to avoid the argument, financial cost and time of a post separation dispute or for those who wish to opt out of the property division or spousal support provisions which would otherwise apply under the Family Law Act or Divorce Act. If spouses who enter into a cohabitation agreement marry, the cohabitation agreement will become a marriage contract. The goal is to create a set of terms which govern the parties' financial relationship so that in the event of separation there are no disputes relating to spousal support or property. Couples may contract out of legislated support or property provisions either in whole or in part. Terms for spousal support, including a waiver of support, can also be included but must not be unconscionable.