Why You Should Consider a Cohabitation Agreement in Ontario

 


More couples than ever are choosing to live together without getting married. While this can be a fulfilling and practical arrangement, many don’t realize that common-law relationships in Ontario do not offer the same legal protections as marriage — especially when it comes to property, debt, or support if the relationship ends.

A cohabitation agreement is a powerful legal tool that can help partners clarify expectations and avoid conflict. At Ramachandran Law, we help couples across Ontario create legally sound agreements that protect their rights and provide peace of mind.

What is a cohabitation agreement?

A cohabitation agreement is a written contract between two people who live together or plan to live together in a committed relationship. It outlines how you and your partner will handle issues like:

  • Property ownership and division
  • Financial responsibilities and shared expenses
  • Debts and liabilities
  • Spousal support (if the relationship ends)
  • What happens to jointly acquired assets

If the couple later decides to marry, the cohabitation agreement automatically becomes a marriage contract, unless stated otherwise.

Why is a cohabitation agreement important?

Unlike married couples, common-law partners in Ontario do not have automatic property rights. That means if you break up, you could lose assets you assumed were shared or be held responsible for debts you didn’t create.

A cohabitation agreement helps prevent:

  • Disputes over who owns what
  • One partner being left without support
  • Unexpected financial burdens
  • Costly court battles

It also provides clarity during the relationship by outlining how financial matters will be handled — especially helpful for couples combining assets or buying property together.

When should you create a cohabitation agreement?

Ideally, a cohabitation agreement should be signed before moving in together. However, it can be created at any point during the relationship.

Common situations where a cohabitation agreement is especially useful:

  • One partner owns the home
  • One partner has significantly more assets or debt
  • Either partner has children from a previous relationship
  • You’re buying property or starting a business together
  • You want to define spousal support obligations ahead of time

What can (and can’t) a cohabitation agreement include?

A well-drafted cohabitation agreement can include:

  • Ownership of property brought into the relationship
  • How future assets and debts will be shared
  • Arrangements for living expenses
  • Provisions for spousal support after separation
  • Rules for selling jointly owned property

However, it cannot legally determine child custody or child support, which must be decided based on the child’s best interests at the time of separation.

How do you make a cohabitation agreement legally binding?

In Ontario, a cohabitation agreement is legally binding if:

  1. It’s in writing and signed by both parties
  2. Both parties provide full and honest financial disclosure
  3. Each party receives independent legal advice
  4. The agreement is not made under duress or coercion

At Ramachandran Law, we ensure all agreements meet legal standards and are tailored to your specific needs. We also offer independent legal review if your partner has already presented a draft.

What happens if we separate without a cohabitation agreement?

Without a cohabitation agreement, Ontario law treats each partner’s property as their own — even if you shared your home, income, or expenses for years. Unless you can prove a financial contribution that led to an unjust enrichment (which is difficult and time-consuming), you may not be entitled to compensation.

A cohabitation agreement provides protection and fairness — so that each partner understands what to expect and has a legal foundation to rely on.

Conclusion

Cohabiting with someone is a meaningful commitment. Protecting that commitment with a cohabitation agreement helps ensure that both partners are respected, heard, and legally protected — both now and in the future.

At Ramachandran Law, we offer clear, compassionate guidance for couples who want to safeguard their relationship and assets. Whether you’re just moving in or have been living together for years, it’s never too late to create a plan that works for both of you.

📍 Learn more or book a consultation at ramachandran.law/cohabitation-agreement and let us help you take the next step with confidence.


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