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.