To simplify the process of creating your Cohabitation Agreement, NotaryPro offers an online document creator. You can avoid the hassle of drafting a document on your own and use a fillable Cohabitation Agreement template instead.

What is a Cohabitation Agreement?

A Cohabitation Agreement is a legal contract that cohabiting partners can use to protect themselves in the event of a separation. This Agreement outlines the rights and responsibilities of an unmarried couple cohabiting together. 

A Cohabitation Agreement protects each party’s financial interests, details property rights, and outlines future child or spousal support commitments. It also illustrates how finances, assets, debts, and more will be treated in the event of a split. Since cohabiting spouses don’t receive the same protection as married couples in Ontario, cohabiting partners often use this Agreement for protection instead.

What is the Purpose of a Cohabitation Agreement?

Splitting assets can be daunting during a separation. A Cohabitation Agreement is crucial for protecting your (and your partner’s) best interests, and documenting each party’s rights and obligations. 

This Agreement provides clarity if an unmarried couple breaks up and disagrees on who gets what. It also minimizes legal fees and can prevent the need to go to court. 

Protecting Property and Assets

Domestic partners usually draft a Cohabitation Agreement to safeguard their property, debts, assets, and income. This prevents either partner from making claims on the other’s belongings. If you own property or substantial assets, this Agreement offers critical protection.

In addition to protecting your best interests, this Agreement ensures important financial considerations are clear and agreed upon.

Avoiding Complex Court Cases

A Cohabitation Agreement helps to reduce any future litigations that may arise. This can save you frustration, money, and time. Without a contract in place, a former couple may end up in a long and expensive court battle. 

What’s more, the rules for diving property and assets are complicated should you choose to separate. A Cohabitation Agreement prevents the courts from making personal decisions for you, as it outlines your wishes.

When Do I Need a Cohabitation Agreement in Ontario?

In Ontario, a couple might use a Cohabitation Agreement for various situations. They might create one if they plan to purchase a common-law home or remain in a long-term, unmarried relationship. Another reason a couple may want to draft this Agreement is that one or both partners have a complicated financial history.

A Cohabitation Agreement can be used to:

• Clarify what happens if one spouse contributes to the other’s property

• Outline how property will be divided

• State who will move out of the home

• Clarify how the Agreement will be changed due to major life changes

• Detail how assets will be divided when partners purchased them together

• Determine how each person’s debts will be managed

• Outline household expenses and shared finances

• Detail spousal support payment details

• Outline repayment terms for shared debts

What Details Should a Cohabitation Agreement Contain?

A Cohabitation Agreement is a highly personal legal contract that varies from couple to couple. There are no regulations around which terms you must agree on in your Agreement. That said, it’s best to be as clear and detailed as you can. 

Fundamentally, a Cohabitation Agreement should have your and your partner’s personal information. This includes your full legal names, respective occupations, address, and the date you started cohabiting. Further, you can choose to include the following details in your Agreement:

The Division of Tasks and Expenses

You can outline how you and your partner will be dividing household expenses during cohabitation. For example, some expenses can be taken from a joint account, while others are split between you two. Couples often split expenses by income, type, and percentage. 

You can also outline important non-monetary rights and obligations, like which tasks each of you is responsible for and which are shared.

Address Personal Assets

If you own assets, you can list which ones you want to keep to yourself in your Cohabitation Agreement. This ensures that your partner doesn’t have access to your assets should the relationship dissolve.

You can also outline which assets you’d like to share with your partner in your Agreement. These can include vehicles, property, jewellery, and more. You can divide assets equally or by each partner’s financial situation or contribution. Another option is to have one spouse pay out the value of an asset to the other, so they have total ownership.

Division and Ownership of Property

You can state who owns what property and how you will divide ownership in the case of a separation. In addition to real estate, “property” can actually include jewelry, bank accounts, pensions, and business assets. 

You can document intentions to keep property separate, preventing future claims for constructive trust, unjust enrichment, and joint family venture. Doing this will give you control over your property, and empower you to protect yourself financially. If you don’t add property details to your Agreement, the courts could end up deciding these matters for you.

Further, it’s good practice to include any property inheritances going to your partner in the event of your passing. If you don’t have a Will or a Trust, a Cohabitation Agreement can ensure that your wishes are documented and enforced. 

Debt Details

In addition to assets, it’s important to include personal and shared debts in your Agreement. If you or your partner had acquired debts before cohabiting together, you can state who will be responsible for repaying them. Also, you can indicate which of your debts are shared, and how you will divide them during repayment.

Child Support and Education

In Ontario, if you have dependent children with your partner or from a prior relationship, you can include them in your Agreement. You can detail how you will handle children’s education, child support obligations, and children’s moral training. 

This includes how you’ll raise children, the religion they’ll practice, and the educational path they’ll pursue. Adding such information ensures you and your partner are on the same page about critical matters concerning children.

The Agreement should not address parenting time (formerly known as access) or decision-making responsibility for children (formerly known as custody). If you need to, you can include these details in a Separation Agreement. The courts will consider the best interest of the child(ren), and decide on child custody matters. 

Spousal Support Obligations

In Ontario, spousal support details can be included in your Cohabitation Agreement and enforced. Failing to include this information can put either partner at a disadvantage should the relationship come to an end. You can also include spousal support limitations or releases based on changing circumstances, such as salary changes. 

Is an Ontario Cohabitation Agreement Legally Binding?

So long as your Cohabitation Agreement meets the criteria for a valid domestic contract under Ontario Law, it’s legally binding. If anyone plans to challenge your Cohabitation Agreement, they must prove that it’s invalid in court. 

Like any contract, a Cohabitation Agreement must contain certain elements to be legally enforceable. In addition, a Cohabitation of Agreement needs to be:

• Made in writing;

• Dated and signed by each partner, before two witnesses

• Dated and signed by each witness;

• Signed by parties and witnesses 18 or older;

• Clear in identifying both partners and the nature of their rights and obligations;

• Signed once both parties have disclosed their assets, liabilities and circumstances. 

• The absence of full financial disclosure may invalidate the Agreement.

Does a Cohabitation Agreement Need to Be Notarized in Ontario?

Your agreement must be witnessed by two witnesses over the age of 18. That said, Ontario law doesn’t require your witnesses to be authorized officials, like lawyers or paralegals. However, we recommend having your Agreement notarized by a notary public to add credibility to it. 

Notarization offers strong evidence to establish your Cohabitation Agreement’s validity and authenticity. It reduces the chances of your Agreement’s legitimacy being questioned in future disputes. 

Additionally, notarization is a good idea if you plan to use your Cohabitation Agreement internationally. Notarization may be a requirement in jurisdictions outside of Canadian borders. This applies if you plan to use your agreement for immigration or international travel.

During notarization, NotaryPro provides you with both witnesses; click here to have your agreement finalized online, in under 7 minutes. You can meet with a notary virtually, from the comfort of your home or office, with a same-day appointment. 

Draft an Ontario Cohabitation Agreement Today

Drafting a Cohabitation Agreement is simpler than ever before with our free Ontario Cohabitation Agreement template. It’s customizable and easy to use — fill in the relevant sections and have a perfectly formatted Cohabitation Agreement sent to you.

The best part? You don’t have to find two witnesses to seal the deal. Once your Agreement is completed and both parties are ready to sign, you can have it witnessed online with NotaryPro. 

Head to our online notary and choose the option ‘notarize a document (digitally sign)’. Then, upload your document and schedule an appointment that works best for you.