A Cohabitation Agreement is generally intended for couples who are living together or planning to live together. If you are not living together but own property together, lend money to one another, operate a business together, or have other financial arrangements you wish to document, it may still be beneficial to put those arrangements in writing. The easiest, fastest, and most affordable way to create a cohabitation agreement in Canada is to use Legal Line’s cohabitation agreement template —a fraction of the cost of hiring a lawyer.

What is the legal definition of “cohabiting” ?

The FLA defines “cohabit” as living together in a conjugal relationship, whether inside or outside marriage. Courts look at practical factors, such as a shared home, shared finances, and how the couple presents themselves publicly to determine cohabitation, rather than simply whether two people are dating or exclusive.

When are couples considered “spouses”?

For spousal support purposes under Part III of the Family Law Act, an unmarried partner becomes a “spouse” after the couple has cohabited continuously for at least three years, or if they are in a relationship of some permanence and have a child together. However, the automatic property equalization rules under Part I of the Family Law Act do not apply to unmarried couples, regardless of how long they have lived together.

Federal Law

Federal legislation, such as the Income Tax Act, treats a couple as common-law for tax purposes after just 12 months of cohabitation – a much shorter and different threshold than Ontario’s three-year rule for support rights under the FLA. Being “common-law” federally for tax purposes does not automatically mean the same rights exist provincially for family law purposes.

When should a Cohabitation Agreement be considered?

It is time to consider a cohabitation agreement once a couple is discussing moving in together. This is especially true if one partner owns property, has significantly more assets or debt, or if couple plan to combine finances.

Getting the advice and help you need

Before you say “I do,” protect your future. Contact Prenup.ca for clear, enforceable marriage contracts that safeguard your assets and reduce conflict if things change. Speak with an experienced Ontario family lawyer today at 1-800-837-0460 .

Get your Cohabitation Agreement

Every common-law couple should consider having a cohabitation agreement to establish clear expectations, address important financial matters, and help prevent conflicts in the future.

The easiest, fastest, and most affordable way to create a cohabitation agreement in Canada to use Legal Line’s cohabitation agreement template.

								
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