Prepared By: Michael Carabash Page 1 of 31 Cohabitation Agreements in Ontario DISCLAIMER: Please note that the information provided in this DL Guide is NOT legal advice and is provided for educational purposes only. Laws are subject to change and without notice. This DL Guide may be outdated. If you need legal advice with respect to preparing, drafting, negotiating, and resolving disputes concerning cohabitation agreements in Ontario, Canada, you should seek professional assistance. You can contact Michael Carabash directly at
[email protected]. Last Updated: June 2011 © 2008-2011, Dynamic Lawyers Ltd. All Rights Reserved. Michael Carabash, B.A., LL.B., J.D., M.B.A. Need an Ontario Lawyer? Make a Post. Get FREE Quotes!
[email protected] www.DynamicLawyers.com Cohabitation Agreements in Ontario Page 2 of 31 Table of Contents What is a Cohabitation Agreement? ............................................................................................................... 4 When are they used? ....................................................................................................................................... 4 What are the legal requirements for a Cohabitation Agreement? .................................................................. 4 How have the Courts approached Cohabitation Agreements? ....................................................................... 5 How can Cohabitation Agreements be challenged? ....................................................................................... 6 Tips to avoid having an invalid and unenforceable Cohabitation Agreement ............................................. 15 Is Independent Legal Advice Required? ...................................................................................................... 17 What happens if a Cohabitation Agreement is set aside? ............................................................................. 17 Dealing with the Home ................................................................................................................................. 22 Dealing with the Matrimonial Home ............................................................................................................ 23 When does a Cohabitation Agreement terminate? ....................................................................................... 25 Terms of a Simple Cohabitation Agreement ................................................................................................ 25 Introductory Clause ...................................................................................................................................... 25 Background ................................................................................................................................................... 26 Definitions .................................................................................................................................................... 26 Domestic Contract ........................................................................................................................................ 26 Effective Date ............................................................................................................................................... 26 Survival upon Marriage ................................................................................................................................ 27 Support Obligations ...................................................................................................................................... 27 Ownership and Division of Property ............................................................................................................ 27 Release against Estate of other Party............................................................................................................ 28 Home | Matrimonial Home ........................................................................................................................... 29 Household Expenses ..................................................................................................................................... 29 No Unjust Enrichment .................................................................................................................................. 29 Michael Carabash, B.A., LL.B., J.D., M.B.A. Need an Ontario Lawyer? Make a Post. Get FREE Quotes!
[email protected] www.DynamicLawyers.com Cohabitation Agreements in Ontario Page 3 of 31 General Terms .............................................................................................................................................. 30 Schedule A .................................................................................................................................................... 30 Execution ...................................................................................................................................................... 30 About Us ....................................................................................................................................................... 31 Michael Carabash, B.A., LL.B., J.D., M.B.A. Need an Ontario Lawyer? Make a Post. Get FREE Quotes!
[email protected] www.DynamicLawyers.com Cohabitation Agreements in Ontario Page 4 of 31 What is a Cohabitation Agreement? A Cohabitation Agreement is a written contract between two people who are cohabiting or intend to cohabit and who are not married. The Cohabitation Agreement deals with the parties’ respective rights and obligations during and after their cohabitation (or on death) and can deal with things like: ownership or division of property, support obligations, the right to direct the education and moral training of children, and any other matter in the settlement of their affairs (s. 53 of the Ontario Family Law Act). Importantly, a Cohabitation Agreement CANNOT say who will have custody of, or access to, children if the relationship ends. Finally worth mentioning is that a Cohabitation Agreement does not need to deal with all rights and obligations concerning the relationship: it can only be concerned with one asset (e.g. a house) or one obligation (e.g. support to one party upon termination). When are they used? Cohabitation Agreements are used by cohabiting persons and common law spouses when they are or intend to cohabit with each other and want certainty, predictability and control their financial affairs in case the relationship breaks down. What are the legal requirements for a Cohabitation Agreement? The legal requirements for a Cohabitation Agreement in Ontario include the following: 1. The parties must make full disclosure of their financial assets, liabilities, income and expenses; 2. The contract must be in writing and signed by each party before a witness; and 3. The contract must be entered into voluntarily (i.e. no duress, undue influence, unconscionability, etc.). It is advisable that each party retain separate legal counsel to protect their rights and promote their interests. Family law lawyers can help draft, negotiate, and explain cohabitation agreements to you. The last thing you want is for one party to claim that he or she did not understand the Cohabitation Agreement, entered into under duress, and did not receive independent legal advice concerning it! Michael Carabash, B.A., LL.B., J.D., M.B.A. Need an Ontario Lawyer? Make a Post. Get FREE Quotes!
[email protected] www.DynamicLawyers.com The full DL Guide is available for FREE with the purchase of a Legal Form. Michael Carabash, B.A., LL.B., J.D., M.B.A. Need an Ontario Lawyer? Make a Post. Get FREE Quotes!
[email protected] www.DynamicLawyers.com