While many couples still wait to get married before finding a home and starting a new life together, many others prefer to live together before, or instead of, marriage. While cohabitation does offer advantages, it also presents some legal considerations for the couple to address. Cohabitation agreements offer couples the opportunity to protect their interests while outlining their expectations of their relationship.
What is a Cohabitation Agreement?
Cohabitation simply means living together. A cohabitation agreement, also known as a common-law agreement, is a document, usually put together with the help of a family lawyer, that outlines the rights and responsibilities of individuals who live together in a relationship outside of marriage. It establishes guidelines for property division, financial matters, and support obligations should the couple separate. In British Columbia, they can provide clarity on how or if common law property rules apply to your relationship.
What is the Purpose of a Cohabitation Agreement?
The agreement serves several purposes, including:
Protection of Personal Assets
Each partner brings personal assets into the relationship and a cohabitation agreement is an essential part of protecting them. During cohabitation, there is a tendency to view most assets as “ours,” but during a separation, many will quickly be designated “mine.” Without an agreement, assets acquired during the relationship may be divided according to the default application of family law.
Defining Financial Responsibilities
Whether married or not, individuals living together have certain financial obligations. One of the main purposes of the cohabitation agreement is to define which responsibilities are handled by each partner. Knowing how obligations such as mortgage payments and living expenses are divided is important in the event of separation.
Clarifying Property Rights
Cohabitating partners will often invest in the acquisition and improvement of shared assets. A cohabitation agreement is crucial in such situations because it will clarify property rights and can help avoid the disputes that can arise over the division of property at the end of a relationship.
Clarifying Child-related Matters
Cohabitating partners with children benefit from agreements that address custody, support, and visitation rights. While cohabitation can be overridden when the best interests of the child are at stake, it can at least provide a framework for discussion that may be useful in avoiding or mitigating disputes.
Avoiding Litigation Costs
Ideally, relationships would continue to flourish and there would be no need for cohabitation agreements, but when a relationship does end, there may be disputes over support or other financial obligations, the division of property, and more. Having an agreement in place can help prevent such disputes from going to court, saving both individuals time and money.
Providing a Sense of Security
Relationships always begin with optimism and bright hopes for the future, but they are often unpredictable. While there are no guarantees for a relationship, having a cohabitation agreement can relieve feelings of uncertainty by giving both partners a clear, agreed-upon guideline for resolving any issues that arise.
Why You Should Consider a Cohabitation Agreement with Your Partner
As demonstrated above, cohabitation agreements can cover a lot of ground and prove useful in several ways in the event of separation. Here are a few more points to consider:
Legal Recognition and Enforceability
Cohabitation agreements are legally recognized in British Columbia if made in writing, signed by both parties, and witnessed. Individual legal advice is highly advisable, but the agreement provides a good foundation for protecting the rights of both partners.
Tailored to Your Unique Circumstances
No two relationships are alike and creating a cohabitation agreement allows both partners to work together to create an agreement that suits their specific situation. By providing this level of flexibility, both parties can be sure that their individual needs and concerns are addressed.
Financial Security
An important part of the agreement is outlining the financial obligations and expectations of each partner, providing a sense of security for both. This becomes especially important in the event of a large disparity in earnings.
Helps Prevent Disputes
When there are clearly established and agreed-upon guidelines, a cohabitation agreement can help prevent disputes while also reducing the emotional stress involved in a breakup.
Planning for the Future
Cohabitation agreements are sometimes viewed in a negative light, as though they mean that the couple is planning for the inevitable end of their relationship. On the contrary, it can be a powerful tool for those who are in the early stages of planning a life together, as it encourages discussions about their long-term goals and expectations, from buying a home and having children to retirement planning. By discussing and defining their expectations, the couple creates a foundation to build their future together.
If you live in British Columbia and are considering a cohabitation agreement, Hillside Law can help. We have offices in Penticton, but can work with couples throughout BC via teleconference and arrange for document signing. For more information about cohabitation agreements and how they can help you, please contact Hillside Law today. We will be happy to answer all your questions.
