Cohabitation Agreements for Toronto and Ottawa Couples in Ontario

Couples in Toronto and Ottawa often ask whether a cohabitation agreement works differently where they live. Housing is expensive, condos and rentals are common, and it is natural to wonder if local rules change anything.

The short answer is that the rules for these agreements are provincial. What does vary from couple to couple is how your home, lease, mortgage and accounts are set up. This article explains how those issues usually fit with an agreement.

Provincial law governs, wherever you live in Ontario

Two unmarried people who are cohabiting, or who intend to, may make a cohabitation agreement about their rights and obligations, including property and support. That authority is in the Family Law Act, an Ontario statute, so the same framework applies in Toronto, Ottawa or anywhere else in the province.

The same formal test applies everywhere. The agreement is unenforceable unless it is in writing, signed by the parties and witnessed. Ontario's guidance adds that each partner should speak to a different lawyer and that you should exchange financial information before signing.

Why an agreement matters for common-law couples

Ontario does not divide property between common-law couples when they separate. Each partner keeps the property they bought, and neither has a right to share the other's increase in property value. The matrimonial home protections do not cover unmarried partners either.

There is an exception. A partner who contributed to property the other owns may have a right to part of it, and unless the owner agrees to pay the contribution back, that partner may have to go to court. A written agreement is one way to set out in advance how contributions to a home will be treated.

Condos and owned homes

Many couples buy a condo or house together. Joint tenancy is co-ownership with a right of survivorship, while under a tenancy in common each owner holds an undivided interest that does not end on their death, so there is no right of survivorship. Which one you hold affects what happens if one of you dies, so check your title documents.

If one joint owner registers a mortgage, the joint tenancy is not automatically severed in the land titles system, and whether the owners intended to sever is a factual question for the courts. Furniture and household items belong to the person who bought them.

• Check how title is held and who is named.
• Keep records of who paid the down payment and ongoing costs.
• Ask whether your agreement should say what happens if one of you buys out the other.
• Remember that a cohabitation agreement can deal with property and support.

Rented homes, accounts and debts

If you rent, your rights as tenants come from your lease and tenancy law, so ask a lawyer how a separation would affect it. A joint lease is also one of the documents IRCC lists as proof that a couple has lived together.

Money arrangements matter as well. Co-borrowers on a joint credit card are equally responsible for the balance, but an additional cardholder is not responsible for repaying money owing. Joint bank account holders share responsibility for all transactions, and an overdraft may create a debt for everyone on the account. An agreement between the two of you does not change what you owe a lender, so read the credit terms carefully.

What to do next

• Gather your title documents, lease, mortgage papers and account statements.
• List each partner's assets and debts so you can exchange full financial information.
• Decide whether you want your agreement to address property, support, or both.
• Each speak with your own Ontario family lawyer before signing.
• Sign in writing in front of a witness.

Frequently asked questions