Cohabitation Agreements in BC: The Basics & More
If a relationship comes to an end, a cohabitation agreement can help decide what happens with the property, debt, savings, joint bank accounts, and other assets. These agreements are designed to minimize or entirely eliminate arguments that might result from the ending of a relationship.
There are plenty of benefits for common-law couples to create a cohabitation agreement, such as protecting family businesses, premarital assets, and preventing potential legal disputes.
In this blog, we’re going to go over what makes an agreement a cohabitation agreement, as well as provide some guidance on what to look out for when entering into such agreements in British Columbia.
What is a Cohabitation Agreement?
A cohabitation agreement is a legal contract that is signed by a couple before witnesses that determines the couple's financial rights and obligations when they break up, which often departs from how the law would typically operate. You should consider seeking legal advice before signing a cohabitation agreement, as it will most likely involve some level of compromise to your rights.
It’s worth noting that a cohabitation agreement is entirely optional. They are advised for couples who live together, but there is no legal requirement that one must be in place.
What Should I Look for In a Cohabitation Agreement?
Cohabitation agreements typically focus on property, other financial assets, and debts. An ideal cohabitation agreement will dictate what happens to these assets and responsibilities if the relationship comes to an end. Additionally, a cohabitation agreement may discuss spousal support obligations, such as providing ongoing spousal support for a period of time or a waiver of such claims.
You should look for a cohabitation agreement that thoroughly discusses debts, property, and other assets. Common examples of items included in a cohabitation agreement are:
- Both people will retain whatever property was individually owned before living together
- One person will have the right to live in the family home, even if only temporary
- One person will or will not receive financial support, including discussing term lengths
- One person will receive a certain share of the property acquired during a relationship
Your cohabitation agreement should directly spell out what will happen to any assets or debts that are held by either party, both before living together and acquired while living together, including increases in value.
What Cannot Be in a Cohabitation Agreement?
A cohabitation agreement in BC cannot discuss parental rights for children (born or unborn), including responsibilities, custody, or child support obligations. These items can be in the agreement, but they are not legally enforceable.
Discussing parental rights and child support payments is well worth doing, but there’s no legal purpose to including it in a cohabitation agreement.
How Do I Create a Cohabitation Agreement?
A cohabitation agreement should be prepared with a family law lawyer although it is not a requirement. The only requirement is that both couples sign the final copy, along with the signature of a witness.
The specifics of the agreement will be discussed beforehand. Many couples will create a general outline of what they’d like in the agreement before finalizing it themselves or with the assistance of a family lawyer.
Looking for a Cohabitation Agreement in BC?
Cohabitation agreements play an important role in mapping out the division of assets, custody, and other aspects of your relationship should it end.
We highly recommend consulting with a family lawyer for advice when it comes to a cohabitation agreement. It’s important to understand all of your rights and obligations under the agreement.
Are you interested in creating a cohabitation agreement for your relationship? Or do you have questions?
England Lam Family Law can guide you through the process. Check the
frequently asked questions about cohabitation agreement on our website or
get in touch with our team today to get started.
