Couples need a cohabitation agreement to live like spouses and get the benefits like married people. National Observer’s report says 23 percent of the couples living together are unmarried in Canada. The coastal city of Vancouver is no exception to that. But, many of them do not know about cohabitation form and its essentials. That’s why we will describe everything about cohabitation agreements in a short overview.
What is a Cohabitation Agreement?
A cohabitation agreement is a paper statement to establish the rights between couples before marriage. According to the survey, the percentage of cohabitation relationships is 60 percent in today’s perspective. It allows couples to know each other properly, and they can test whether it is possible to marry a person of similar interests.
Who Should Have a Cohabitation Agreement?
The perfect candidates for cohabitation agreements are the people who are not sure about marrying each other in the near future. This type of living relationship is considered common law or domestic partnership in some states in Canada. Also, the people with the following demands require a cohabitation agreement:
- People who need to apply for a mortgage
- People who are working out the child support
- People who need to share their common expenses
How to Fill Out Cohabitation Agreement?
You can write a cohabitation agreement in seven steps. You just have to provide information containing both party’s names, dates, property assets, debts, etc. Lastly, there should be the termination terms included at the bottom of the document.
Advantages of a Cohabitation Agreement
There are both legal and financial benefits to cohabitation agreements. The process makes property distribution and bill payment easier for couples. Even if they split up, they can clarify their responsibilities. They can also plan better for themselves and their children’s future. Let’s look up some important advantages:
Legal Advantages of a Cohabitation Agreement
- Outline your rights and responsibilities, preventing any future arguments.
- Specify ownership of property, investments, and belongings, ensuring a fair split if you separate.
- Detail how you’ll handle bills, savings, and debts to minimize future disagreements.
- Outline living arrangements and support plans for children in case of separation.
- A cohabitation agreement can help avoid costly and stressful court battles.
- Ensure your assets and inheritance wishes are respected, protecting your loved ones.
- Cohabitation agreements are confidential, unlike public court records.
- Create an agreement that reflects your unique situation and preferences.
Relationship Advantages of Cohabitation Agreement
- Set expectations for handling shared expenses, savings, and debt through open communication.
- Prevent confusion and potential fights down the line about jointly acquired assets.
- Discuss how you’ll make joint financial decisions, living arrangements, and potential future goals.
- Demonstrate respect for each other’s financial interests and future plans.
Cohabitation Agreement vs. Marriage or Civil Partnership
| Feature | Cohabitation Agreement | Marriage | Civil Partnership |
| Legal Status | Not a legal relationship | Legally recognized relationship | Legally recognized relationship (similar to marriage) |
| Formalities | No formal ceremony, private document | Public ceremony, legal requirements | Public ceremony (optional), legal requirements |
| Rights & Responsibilities | Outlined in the agreement varies by couple | Automatic legal rights & responsibilities (e.g., inheritance, next-of-kin) | Automatic legal rights & responsibilities (similar to marriage) |
| Property & Assets | Ownership specified in the agreement | Automatic ownership rights may apply (varies by jurisdiction) | Automatic ownership rights may apply (similar to marriage) |
| Financial Support | No legal obligation for financial support | Potential for spousal support upon separation | Potential for financial support upon separation (similar to marriage) |
| Children | Can address child arrangements & support in the agreement | Automatic parental rights & obligations may apply | Automatic parental rights & obligations may apply (similar to marriage) |
| Ending the Relationship | No formal legal process required | Requires legal process (divorce) | Requires legal process (dissolution) |
| Confidentiality | Private document | Public record | Can be private, but some aspects may be public |
| Flexibility | Highly customizable to individual needs | Standardized legal framework | Standardized legal framework (similar to marriage) |
Coverage of the Cohabitation Agreement
The coverage of the cohabitation agreement is narrated below –
Property Ownership
Living together doesn’t grant rights to your home. Cohabitation agreements can give them access, but it’s best to plan for the future. So, consider factors like child custody, inheritance, financial hardship, and how to split shared property in a breakup.
Hold the Ownership
Owning your home with your partner? Use tenancy as it offers more control. You can decide your ownership share and easily access your home if things don’t work out. Even with a cohabitation agreement, tenancy in common provides flexibility and additional benefits.
Asset Division
Dividing property can be tricky. Simple things like cash are easy, but heirlooms or retirement plans are complex. But a cohabitation agreement before moving in clarifies ownership and makes separation smoother.
Maintenance Costs
Cohabitation agreements allow you to decide how to split monthly living expenses, avoiding potential conflicts. This is simpler than navigating civil partnership agreements. Fairly sharing costs fosters a secure and balanced relationship, no matter what the future holds.
Child Support
A cohabitation agreement prepares for the future of a child. Unmarried couples separating face potential child support battles, with the mother often receiving sole custody. Here, the agreement ensures both parents contribute fairly based on future income.
Insurance Settlement
Cohabitation agreements go beyond property. Imagine a life-changing accident. Without marriage, proving you were a couple for insurance payouts can be difficult. This agreement simplifies things, ensuring you receive the support you deserve, even if you run a business together.
What is the Cost of a Cohabitation Agreement?
The price of a cohabitation agreement varies depending on your needs. Factors like how you will handle finances and property division influence the document’s complexity (and cost). Generally, expect to pay between $700 and $2,000. Highly customized agreements or complex legal situations might cost more.
Conclusion
A cohabitation agreement helps you understand each other’s financial expectations, both now and in the future. This reduces the risk of messy arguments if you separate. It clarifies how you’ll divide the property you own together and clarifies what happens if one partner contributes to the other’s assets.
FAQs
How legally binding is a cohabitation agreement?
While a written, signed, and witnessed agreement holds legal weight, seeking independent legal advice for both parties strengthens its validity and minimizes future disputes.
Do cohabiting couples have the same rights as married couples?
Vancouver’s unmarried couples miss out on automatic rights married couples get. A cohabitation agreement fixes that, outlining property division and financial support in case of a split.
Do you need a lawyer for a cohabitation agreement?
Vancouver lets you create a cohabitation agreement without a lawyer. So, consider an expert lawyer to make the agreement accurate! They will examine whether that your agreement is fair, covers everything, and holds up in court, saving you headaches.
