Did you know that after 2 years of living together you are treated like spouses under the law for property division and spousal support?
I firmly believe that all couples who plan to live together should have a Cohabitation Agreement where they have assets, property, or debts when entering the relationship. A Cohabitation Agreement will also contemplate future expectations, including windfalls from inheritances, evolution of businesses and investments, income and employment differences, joint and separate property, children, and support.
The law can be unpredictable as case law shifts and it does not always reflect couples’ expectations respecting property division and spousal support. Having conversations about money and property at the beginning of a relationship ensures that the couple is on the same page, has the same expectations, and can define the rules and boundaries they are comfortable with, rather than be subjected to the changing law.
Many couples are uncomfortable with the idea of a Cohabitation Agreement, as they may see it as a signal that one person does not believe in the relationship. I see it differently– a couple who can talk about money and property, and can make agreements that suit them, can flourish and be a stronger more empowered team. A Cohabitation Agreement is like an insurance policy. You hope you don’t need it, but if you do, the upfront investment will pay off in saved in legal fees required to navigate a separation or divorce and will make those discussions kinder and less loaded. If you have these negotiations when everyone is an empowered, rational and positive space- you won’t have to have them when emotions are high and people are triggered in the aftermath.
A Cohabitation Agreement has weight like a court order and the court must respect them except in certain circumstances. It is important to have a lawyer write and review these Agreements to ensure that the Agreement is fair under the law and can be upheld. Independent Legal Advice is a critical component of ensuring that all parties understand what they are agreeing to and will be bound by.
If you and your partner wish to collaborate more fully in developing your Cohabitation Agreement together, consider Michelle’s unique process: Co-Designed Cohabitation Agreements.
Mediation services are also availble. Michelle is a certified Family Law Mediator by the Law Society of BC.