Cohabitation is quite common nowadays, with many couples choosing to live together before getting married. However, just like with marriage, there are legal ramifications to consider when living together as a couple. This is why a cohabitation agreement is essential. In this article, we will discuss what a cohabitation agreement is, and its importance in Ontario.

A cohabitation agreement is a written agreement between two individuals who are living together or planning to move in together. This agreement helps them to clarify their legal rights and responsibilities, particularly in a situation where their relationship breaks down. It covers various aspects of their living arrangements, such as property rights, financial responsibilities, and possible separation or death scenarios.

Why is a cohabitation agreement essential in Ontario?

As per the Family Law Act, upon separation, couples who have lived together for more than three years are eligible to claim spousal support. This means that if you have been living together with your partner for more than three years, and you break up, you may be entitled to financial support from your partner. However, if there is no cohabitation agreement in place, the determination of spousal support can be very expensive and time-consuming to navigate.

A cohabitation agreement will also protect your assets, especially if you do not intend to get married. For example, you may own a house, and by living with someone, you may put your property at risk. If the relationship ends, your partner may have the right to claim a share of your property. A cohabitation agreement will help to protect your assets by outlining specific terms of ownership and division of property in the event of a separation.

Furthermore, a cohabitation agreement can protect against possible legal liabilities. For instance, if your partner incurs a debt, and you have a shared bank account, creditors may be able to go after your account to recover the debt. However, with a cohabitation agreement, you can separate your finances and prevent your partner`s debt from affecting you.

Conclusively, a cohabitation agreement is a vital legal document for any couple living together, be it married, unmarried, or in a common-law relationship. It helps to protect both parties by providing clarity on each other`s rights and responsibilities. If you are thinking of moving in with your partner, it is essential to get a cohabitation agreement to secure your interests.