by admin | Mar 20, 2025 | Best Lawyer for Family Disputes, Best Lawyers in Edmonton, Blog, Cohabitation, Cohabitation Agreements, Family Attorney, Family Dispute Lawyer, Family Divorce Lawyer, Family Law Lawyer, Family Lawyer
Understanding Property Rights in a Cohabitation Split
In Alberta, property division laws vary significantly between married and common-law couples. Married spouses are covered under the Matrimonial Property Act (MPA), which ensures a structured division of assets. However, common-law partners, legally referred to as Adult Interdependent Partners, do not have the same automatic rights.
When an unmarried couple separates, asset division is primarily determined by legal ownership—meaning that whoever holds the title to a property or asset is recognised as its legal owner. This can create challenges when one partner has contributed financially or through unpaid labor but does not have legal ownership.
In such cases, legal doctrines like unjust enrichment and constructive trust may allow the non-owner to claim compensation or an interest in the property to prevent unfair financial gain.
Dividing Jointly Owned Assets
For jointly owned assets, the division is generally more straightforward. When both partners are listed on a property title, vehicle registration, or other jointly owned assets, they are typically entitled to a share.
However, the actual division may depend on financial contributions, maintenance efforts, or other non-monetary inputs made by each partner during the relationship. In cases involving joint bank accounts, funds are often split 50/50, but disputes can arise if one partner withdraws a significant amount before the separation is finalised.
In such situations, courts may intervene and adjust the division based on each partner’s financial contributions and fairness.
Unjust Enrichment and Constructive Trust Claims
If an asset is in one partner’s name but the other contributed significantly—financially or through unpaid labor—they may have a claim under unjust enrichment. This applies when:
- One partner benefits financially while the other suffers a loss.
- There was no formal agreement for compensation.
- Keeping the asset solely in one partner’s name is deemed unfair.
A constructive trust claim may also be used when a partner’s contributions increase an asset’s value, giving them a right to a share.
Handling Debt in a Cohabitation Split
Debt responsibility in a cohabitation split is typically assigned to the individual whose name appears on the loan or credit agreement. However, when both partners have shared financial obligations, such as joint loans, credit cards, or household expenses, the division of debt can become a legal issue.
Courts may assess each partner’s financial contributions, usage of borrowed funds, and the intended purpose of the debt to determine a fair allocation. If one partner incurred debt for mutual benefits, such as funding home improvements or covering shared expenses, they may seek reimbursement from the other partner, though disputes can arise in the absence of a formal agreement outlining debt responsibilities.
Cohabitation Agreements: Preventing Future Disputes
A cohabitation agreement can prevent disputes by outlining asset and debt division terms before issues arise. A legally binding agreement can:
- Define property ownership and division.
- Establish financial responsibilities.
- Outline how debts will be handled.
- Reduce the risk of legal conflicts.
Having a clear financial agreement in place can provide security for both partners and avoid costly legal battles.
Seeking Legal Assistance
Property and asset division in a cohabitation split can be complex, especially when high-value assets or financial contributions are involved. Since common-law partners do not have automatic property rights, seeking legal guidance from the Best Family Lawyers in Edmonton is crucial.
Courts consider various factors, including financial contributions, shared responsibilities, and agreements between partners, when determining asset division. Without clear documentation or legal protection, disputes can arise over ownership, compensation, or entitlement to shared property.
Understanding Alberta’s cohabitation laws and potential legal claims can help individuals protect their financial interests, prevent unexpected legal battles. These laws also help navigate the separation process fairly and effectively, ensuring a more equitable outcome.
by admin | Mar 18, 2025 | Best Lawyer for Family Disputes, Best Lawyers in Edmonton, Blog, Cohabitation Agreements, Family Attorney, Family Dispute Lawyer, Family Divorce Lawyer, Family Law Lawyer, Family Lawyer
Many couples in Alberta choose to live together without getting married. While this arrangement offers flexibility, it also comes with legal uncertainties—especially regarding property division, financial responsibilities, and potential disputes if the relationship ends. Unlike married couples, common-law partners do not automatically have the same legal rights, making a cohabitation agreement a crucial legal tool.
A cohabitation agreement is a legally binding contract that outlines financial and property arrangements between unmarried partners. It helps clarify rights and responsibilities, preventing future conflicts and ensuring both parties are protected. But do you need one? Let’s explore why a well-drafted cohabitation agreement can be essential.
What Is a Cohabitation Agreement?
A cohabitation agreement is a written contract between two people who live together in a romantic relationship but are not legally married. This agreement defines how assets, debts, and other financial matters will be handled during the relationship and in the event of a breakup.
Unlike verbal agreements, a legally enforceable cohabitation agreement provides clarity and security, helping both partners understand their rights and obligations. It can cover various aspects, including property ownership, financial contributions, spousal support, and debt responsibilities.
Why Is a Cohabitation Agreement Important?
Many couples assume that living together for a certain period automatically grants them the same rights as married couples. However, common-law relationships in Alberta do not carry the same legal protections as marriage. Without a cohabitation agreement, disputes over assets and financial obligations can become complex and costly.
A cohabitation agreement can help:
- Protect assets: Clearly outline who owns what to prevent disputes.
- Define financial responsibilities: Specify how expenses, rent, and debts will be shared.
- Avoid lengthy legal battles: Provide a clear framework for resolving disagreements.
- Ensure fairness in separation: Outline provisions for property division and support if the relationship ends.
What Can Be Included in a Cohabitation Agreement?
A well-drafted agreement can cover:
- Property Ownership: Defines asset ownership and handling of joint property.
- Financial Responsibilities: Details expense-sharing and debt management.
- Spousal Support: Establishes support terms if the relationship ends.
- Estate & Inheritance Rights: Clarifies inheritance arrangements.
- Dispute Resolution: Includes mediation or arbitration provisions.
Is a Cohabitation Agreement Legally Enforceable?
Yes, a properly drafted and signed cohabitation agreement is legally enforceable in Alberta. However, for it to hold up in court, certain conditions must be met:
- Both parties must enter the agreement voluntarily.
- The agreement must be in writing and signed by both partners.
- Each partner should seek independent legal advice before signing.
- Both parties must provide full financial disclosure.
If any of these conditions are not met, the agreement may be challenged in court.
When Should You Get a Cohabitation Agreement?
It is best to create a cohabitation agreement before moving in together or shortly afterward. However, even if you have already been living together for years, it is never too late to establish one.
Situations where a cohabitation agreement is significant include:
- One partner owns property or significant assets.
- One or both partners have substantial debt.
- One partner has a substantially higher income than the other.
- The couple plans to purchase a home together.
- One partner intends to leave their job to support the household.
How We Can Help
At Kolinsky Law, our Family Lawyers in Edmonton understand the legal challenges of common-law relationships. Our experienced family law team can draft an explicit, enforceable cohabitation agreement to protect your rights and prevent disputes.
Whether you’re moving in together or already cohabiting, having a legally binding agreement can safeguard your financial and emotional well-being. Don’t wait for conflicts to arise—take proactive steps to protect your future. Contact us today to discuss your options.
