You might have heard of “prenups” thanks to American legal dramas, but here in Canada, they are more commonly referred to as a cohabitation or marriage agreement, they are one in the same.
If you are reading this you may be moving in with someone, about to tie the knot or already living with a partner and this thought may have crossed your mind “Do I really need a cohabitation agreement?” Short answer: yes, you might!
Think of it as the relationship insurance policy you didn’t know you needed. In British Columbia, you’re not officially spouses until one of two things happens: you either marry or live together in a marriage-like relationship for at least two years—or, for the purposes of spousal support, have a kid together. Once you hit those milestones, congratulations! You gain rights regarding property division and potential claims for spousal support.
Property Division
Now, if you skip the cohabitation agreement, you and your partner will be sharing the family fortune and debts down the line. Family property includes almost everything owned on the separation date—including houses, cars, and that questionable art piece you both love to hate. But fear not! Some property can be excluded, like what you owned before the relationship, personal gifts, and certain insurance settlements. Just be sure to keep receipts or documents handy; you wouldn’t want to lose out on an exclusion just because you didn’t have proof.
Support
You may be tempted to slip in a clause that says, “No spousal support for you!” But in many relationships, courts are unlikely to enforce this. They’ll look at factors like who had the economic advantage or disadvantage during the relationship. So, if one of you was busy being the breadwinner while the other stayed home to take care of the children, you might want to rethink that clause.
And what about child support? Child support is the right of the child, it is not something that can be contracted out of. Each parent has an obligation to pay for support unless certain conditions apply. Before you ask – yes that includes stepparents in certain situations.
Estate Planning
Finally, if you’re stepping into a second marriage and have adult children from a previous marriage, don’t forget about the Wills, Estates and Succession Act (WESA). Even if you have a will or cohabitation agreement stating otherwise, a surviving spouse might still have rights to a chunk of the estate, which can complicate things if adult children are in the mix. While a cohabitation agreement can clarify your wishes, it won’t completely sidestep these legal rights.
So, whether you’re in love, cohabitating, or just figuring things out, consider a one-hour consultation with a family lawyer. It’s a small investment that could save you a lot of headaches down the road. After all, knowing your rights and responsibilities can make all the difference.
For more information or legal advice on cohabitation agreements, contact our Family Law practice group today.
The information provided above is for educational purposes only. This information is not intended to replace the advice of a lawyer or address specific situations. Your personal situation should be discussed with a lawyer. If you have any questions or concerns, contact a legal professional.
The information provided above is for educational purposes only. This information is not intended to replace the advice of a lawyer or address specific situations. Your personal situation should be discussed with a lawyer. If you have any questions or concerns, contact a legal professional.