What is a cohabitation agreement and do common-law couples need one in Ontario?

A cohabitation agreement is a written contract between two people who are living together (or plan to live together) outside of marriage. In Ontario, it is governed by the Family Law Act as a type of domestic contract. The agreement lets the couple define their financial rights and obligations while together and in the event they separate.

Because common-law partners in Ontario do not automatically share in each other's property the way married spouses do, a cohabitation agreement can be especially important. It can address who owns what property brought into the relationship, how jointly acquired property will be divided, whether either partner will pay or receive spousal support on separation, and how shared expenses will be managed.

For a cohabitation agreement to be enforceable, it must be in writing, signed by both parties, and witnessed. Courts have set aside agreements where one party did not have independent legal advice or where financial disclosure was inadequate, so it is strongly recommended that each partner have a separate lawyer review the agreement.

If a couple later marries, the cohabitation agreement automatically continues as a marriage contract unless it states otherwise.