Cohabitation agreements are gaining significance in the modern-day society of Toronto, where an increasing number of couples opt to live together without tying the knot. A well-crafted cohabitation agreement serves as a protective shield for both parties’ interests, ensuring a seamless transition if the relationship comes to an end. This article delves into the process of formulating a legally enforceable cohabitation agreement in Toronto and underscores the key elements that need consideration while drafting one.

What is a Cohabitation Agreement?

Cohabitation agreements in Ontario are legally binding documents that set out the rights and obligations of unmarried couples living together. These arrangements address issues such as spousal support, division of assets/debts between two parties and any other necessary support obligations if a common law relationship ends. Should this couple decide to get married in future, then the cohabitation agreement may even be converted into a marriage contract. It’s worth noting These terms do not include child custody or financial assistance matters which must still follow Family Law regulations separately from the initial agreement at hand.

When Should You Sign a Cohabitation Agreement?

Creating a cohabitation agreement at the beginning of living together in Ontario promotes fairness and ensures both common law spouses’ assets are safeguarded as laid out by its Family Law Act. Taking this proactive step helps protect each partner’s rights before substantial financial commitments are made, leading to greater security and trust between them. It can also prevent disputes that may arise during separation if done beforehand. An alternative being getting a prenuptial agreement instead which is still relevant under family law when parties separate or dissolve their relationship.