A cohabitation agreement is a legal agreement that outlines the rights and responsibilities of each partner during the relationship and in the event of a breakup or separation. Essentially, it serves as a form of protection for both parties. It must be freely entered into by both parties with the goal of establishing clear guidelines for the division of jointly purchased property and individually purchased assets, financial support, and other important matters like legal claims on spousal support.

Cohabitation agreements are guided by the Family Law Act and the Adult Interdependent Relationships Act, which is similar to the Matrimonial Property Act for married couples. The Adult Interdependent Relationships Act is governed by Alberta law and provides a legal framework for recognizing and addressing the rights and responsibilities of individuals in an adult interdependent relationship (otherwise known as a common law relationship).

Cohabitation agreements provide several benefits and protections for couples who decide to live together outside of marriage. One primary reason for having such an agreement is to clarify financial matters and protect assets in the event of a breakup. Without a cohabitation agreement, disputes over property ownership and financial support can become contentious, leading to lengthy legal battles.

A cohabitation agreement also allows couples to customize their rights and obligations according to their unique circumstances. This flexibility ensures that both parties feel comfortable and secure in their living arrangement, knowing that their interests are protected by a legally binding contract.

Having a cohabitation agreement in place can also help to strengthen the relationship by fostering open communication and trust. By discussing important issues such as finances and property ownership upfront, couples can avoid misunderstandings and conflicts down the line.

Couples who have significant assets or disparities in income may have an even greater need for a cohabitation agreement to protect their financial interests. Couples who plan to purchase property together or co-mingle their finances should strongly consider creating a cohabitation agreement to clarify ownership rights and responsibilities.

What’s more, couples who wish to establish guidelines for decision-making, such as how household expenses will be divided or how major life decisions will be made, can also benefit from a cohabitation agreement. Complete transparency in financial matters is crucial, necessitating full disclosure of assets, liabilities, and income by both parties.

A cohabitation agreement typically covers a wide range of issues related to the couple’s living arrangements and financial matters. Some standards provisions that may be included in a cohabitation agreement include:

While both cohabitation agreements and prenuptial contracts serve similar purposes in terms of asset protection and establishing rights and responsibilities, they are designed for different types of relationships.

A cohabitation agreement is specifically tailored for couples who choose to live together without getting married. It outlines the terms of their living arrangement and addresses issues such as property division and financial support in the event of a breakup.

A prenuptial agreement, on the other hand, is created by couples who plan to get married and want to protect their assets in the event of divorce. It typically addresses issues such as property division, spousal support, and inheritance rights.

Prenuptial agreements may also have legal requirements and considerations that differ from cohabitation agreements, as they are governed by marriage laws.

Creating a cohabitation agreement is a complex legal process that requires careful consideration of various factors and legal requirements. We are experienced family lawyers who know the ins and outs of the Alberta laws and can provide invaluable assistance throughout the process.