Many people contact our legal practice to ask: “What is a cohabitation agreement?”. Cohabitation Agreements in Nova Scotia, or anywhere in Canada, are agreements entered into between a couple who wish to live together and determine issues with regard to property and obligations. Couples can enter into a Cohabitation Agreement in advance of a marriage if they plan to live together and subsequently marry. If the parties plan to marry or enter into an agreement after marriage, the agreement is then referred to as a Marriage Contract and must specifically mention that it is a contract to be taken into consideration under the Matrimonial Property Act – which applies to all married couples.
Do I Need a Cohabitation Agreement?
The purpose of these agreements is to set out agreed terms regarding assets. Generally, these agreements deal with ownership in homes, pensions, investments and potential inheritances. When parties are entering into a relationship with assets, these agreements can set out how these assets will be treated; how future assets will be shared; and, what the obligations of the parties will be to each other.
Cohabitation Agreements cannot set out obligations for future children and the support of these children. These are issues that cannot be agreed to in advance of the obligation. It is not uncommon for these agreements to set out, in advance, obligations of the parties to one another with regard to potential claims for spousal support, especially if the parties do not want to be obligated to support each other in the event of a breakdown in the relationship.
Cohabitation Agreements can also resolve ownership of homes and how that interest will be treated when one party moves into a home held by the other. The agreements can state who is responsible for daily expenses, renovations, property taxes, mortgage payments and how any increase in value in a home will be shared in the event that the relationship does not last.
Agreements are always recommended for individuals who have assets and pre-existing obligations, such as children or spouses from prior relationships, so that there is clarity between the parties as to what obligation each party has agreed to assume and the consequences of it. Contact our team of family lawyers in Nova Scotia for more information about cohabitation agreements. If you’ve got questions about family law, we encourage you to contact us ior fill out the form below to book a consultation.
