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Get Your Cohabitation Agreement in Ontario: A Guide

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Published by:

Deepa Kruse

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Reviewed by:

Alistair Vigier

Last Modified: 2023-02-07

Are you looking to create a cohabitation agreement in Ontario to not share property if things go wrong? This type of contract is different from a prenuptial agreement, which is used before you get married.

You need support from an experienced law firm. You need an Ontario cohabitation agreement that protects you.

While it is not legally required to have a lawyer draft a cohabitation agreement in Ontario, it is strongly recommended to consult with a lawyer to ensure the agreement is legally binding and protects both parties rights and interests.

The cost of a cohabitation agreement in Ontario can vary widely depending on various factors, such as the complexity of the agreement, the experience and reputation of the lawyer, and the location of the lawyer’s practice.

On average, the cost of a cohabitation agreement in Ontario can range from $1000 to $2,000, but it can be more or less depending on the circumstances. It is important to consider the long-term benefits of a cohabitation agreement, as it can help prevent disputes and protect both parties’ rights and assets in the event of a separation.

What are the components of a cohabitation agreement in Ontario?

Property and financial obligations. The agreement should outline each party’s financial obligations, including who is responsible for paying bills and debts, and how assets and liabilities will be divided in the event of a separation.

Cohab agreements should also specify living arrangements, such as who will live in the shared residence and for how long.

The agreement should specify how property and assets acquired during the cohabitation will be divided in the event of a separation.

The agreement may also include provisions for support, such as spousal or child support, in the event of a separation.

A contract should outline a process for resolving disputes, such as mediation or arbitration.

These contracts must be in writing, signed by both parties, and witnessed by an adult who is not a party to the agreement. The agreement must also be entered into voluntarily and not under duress or undue influence.

A lawyer can help ensure that the agreement meets all legal requirements and protects both parties’ rights and interests.

Protect their rights

Couples in a common-law relationship might elect to sign a cohabitation agreement in Ontario to protect their rights. The agreement serves multiple purposes.

First, it spells out what you want your family and financial arrangements to be. It will determine who owns the things that are bought while you two are together.

Second, your Ontario cohabitation agreement can also direct how much support will be paid if things don’t work out. The support would be in the event that the relationship ends. Also, it can cover how the property will be divided.

Your Ontario cohabitation agreement can detail who has to move out of the home. This would be the property that is shared by two people if the relationship ends.

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Cohabitation agreement Ontario cost

You can probably find a lawyer to create a cohabitation agreement for you for around $2000. If you go to a more expensive firm, it will likely cost more than $3000.

You need to think about your budget and the value of the assets you are trying to protect. The more assets you have, the more experienced the law firm you should speak to.

Cheaper isn’t always better. Ask yourself this. If a lawyer is the cheapest, why? It’s likely because they do not have a lot of demand. A lawyer who has clients willing to pay them $4000 for a cohabitation agreement won’t be offering them $1500.

Regardless of the price range, the contract should protect your best interests and keeps the domestic violence laws in Canada in mind.

How do you enforce a cohabitation agreement in Ontario?

A cohabitation agreement in Ontario is a legally binding contract and can be enforced in court if necessary. To enforce a cohabitation agreement, one of the parties must initiate a court action and prove that the other party breached the agreement.

The court will consider the terms of the agreement and the circumstances surrounding the breach to determine if enforcement is appropriate. If the court finds that the cohabitation agreement was breached, it may order specific performance, requiring the breaching party to fulfill their obligations under the agreement, or award damages to compensate the non-breaching party.

In some cases, a cohabitation agreement may include provisions for alternative dispute resolution, such as mediation or arbitration, to resolve disputes without going to court. These provisions can be effective in resolving disputes and saving time and money.

It’s important to keep in mind that cohabitation agreements must be entered into voluntarily and not under duress or undue influence. If the agreement is found to be unenforceable, a court may decline to enforce the agreement. This highlights the importance of seeking legal advice when drafting a cohabitation agreement in Ontario.

What cannot be included in an Ontario cohabitation agreement?

Although many issues can be drafted into your Ontario cohabitation agreement, there are some that must be excluded.

For example, the cohabitation agreement cannot say who will have access to or custody of the children if the relationship ends.

You are not eligible to decide this until the relationship is over. In the end, you can draft your own guidelines or wait for the court to decide. Either way, the courts will have to approve any matters related to a child.

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Make Sure The Contract Is Valid

What makes a cohabitation agreement valid?

In order to have a valid Ontario cohabitation agreement, it must be signed in front of a witness. This is required for it to be legal. Also, a witness must also sign that agreement.

Once the cohabitation agreement is valid and legally signed, you must follow what it says. If either one of you wishes to negotiate changes, you have to work this out together. Any other changes must be signed in front of a witness and be in writing.

In the event that you are separated and do not agree with the cohabitation agreement, you will need to go to the Ontario family court. A judge decides the issues for you. Do you really want a third party (the judge) to make major life decisions for you? Decisions that perhaps neither of you is happy with?

Cohabitation Agreement Protection

If you pass away without a will that says exactly what you want to happen to your individual property, this property will likely go to your blood relatives.

A common-law spouse will have to go to court in order to prove that he or she paid for it in order to claim access to it.

This is expensive and takes time. Therefore, a cohabitation agreement in Ontario can help you to avoid the possibility of future litigation.

The contract can also be used to address the complicated aspect of spousal support.

An Ontario cohabitation agreement is made legal under Ontario’s Family Law Act. This is true so long as the proper signing procedure is completed.

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Cohabitation agreement Ontario example

We don’t have an example of a cohabitation agreement, but we have templates of marriage agreements online. They are sort of similar, and you can work with them. You can find it here.

A friend or family member might recommend a cohabitation agreement to you. While the law does not mandate common-law couples to sign one, it is a good idea for two different reasons.

First of all, an Ontario cohabitation agreement enables you to create rights that the law does not otherwise provide for outside of marriage.

Although a cohabitation agreement is often referred to as a marriage contract, the cohabitation agreement is specifically for unmarried couples.

You may agree to split the property down the middle if you separate. This is something that might not be included under the law outside of the development of this cohabitation contract.

The second reason to consider a cohabitation agreement in Ontario is that it gives you and your spouse the opportunity to discuss what each of you anticipates if the relationship were to end.

This is an important conversation that should be had before you move in together.

Do you intend to pursue a domestic partnership in Ontario? You need support from a cohabitation agreement lawyer.

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Creating a Legal Cohabitation Agreement Conclusion

It is strongly recommended that you retain an attorney in Ontario to represent your interests. Both parties must be completely open and honest about their individual financial situations.

Also, they must sign the agreement in front of a witness. This is in order to verify that the document becomes legally binding.

The cohabitation agreement needs to be valid so that it will hold up in court. This will be in the event that you and your partner split.

It is recommended that you contact an attorney to verify that your agreement appropriately protects your interests. Also, it has been properly drafted so that it is legally binding.

Your cohabitation agreement Ontario lawyer will also explain to you how the document can become stronger.

Both common-law partners need to talk to individual attorneys prior to signing the agreement. This helps decrease the chances that one party might argue in the future that they were forced to sign it.

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