To put this in perspective, a recent Ipsos poll commissioned by Global News showed that only eight percent of Canadian couples actually have a marriage deal. As we said in a previous article, many people mistakenly believe that couples who live together or live a “common law” have the same rights as married couples. In some respects, they are correct, but there are also some significant differences. One of the main differences is the sharing of ownership. The best time for a cohabitation agreement is before moving in together or having a child in common. Of course, this is not always possible or practical, but in general, the sooner the better. Cons: Pre-marriage agreements also have some drawbacks, boyd says. You may move cities, provinces or counties to start a new life. You may have a well-established career ahead of you, but since you are in love, you are ready to give up your career.
It is important that you get on helping spouses when the marriage breaks. A marriage agreement should include provisions that protect you if you give up your profession and career for marriage. If you are travelling as a driver or passenger, you hope that your trip would be accident-free, but you are nevertheless taking precautions to protect yourself by throwing away your seat belt. Similarly, a prenuptial agreement is insurance for your marriage or common law relationship. Benefits: Like marital agreements, a cohabitation agreement can protect the individual if the relationship ends, Boyd says. The law on post-law relations in Canada is a mess. Unlike married couples, where there are specific rules on how property is distributed when a relationship ends, there is nothing like that for common law couples. For example, you and your partner can fairly share the costs of a home on behalf of your partner. If you were married, the house would be shared equally. If you are not married, you automatically think that the house belongs to your partner, since your partner`s name is on the house.
To get a share of the house, you have to rely on a complex and expensive right, known as unfair enrichment. Having a lawyer can strengthen the agreement, since a legal protocol has been respected. A lawyer will ensure that your pre-contract has complied with all the legal requirements of the Family Law. For example, if common law couples intend to be completely separated financially, so that each is solely responsible for their own financial support and does not participate in the ownership of the other, they should enter into a cohabitation contract that provides for it. And during their relationship, they must ensure that the decisions they make about children, careers, retirement, real estate purchases, expenses and savings reflect this agreement. Newlyweds are guaranteed an equal division of their assets (net family property) when the relationship ends, but couples who live together do not receive the same guarantee under Ontario law. A spouse could attempt to apply for a common law application for a share of his or her partner`s estate, but there is no guarantee that he or she will get it. For common law spouses, the unions ensure that both spouses have discussed and agreed on what happens to their property when they separate and what it can mean if one of them contributes to the property of the other. Will it be considered a gift or will it give the other spouse a right to participate in the property? This can avoid the chaotic quarrels that could occur during separation if a spouse feels that he or she has not received an adequate share of the assets accumulated during the relationship. Step 2: Create a list with what should cover the deal.
Decisions on how to divide assets when you leave are always made to the best of their ability, while being satisfied with each other! Take some time to get together and list what you want to include in a cohabitation agreement.