A cohabitation agreement in Calgary is a domestic contract that can help protect your rights and outlines how assets or debts should be divided in case of separation. Made between two partners who live together but are not legally married, this legally enforceable document can make all the difference if a relationship comes to an end.
The three primary types of domestic contracts are prenuptial agreements, postnuptial agreements, and cohabitation agreements. Prenuptial agreements are for two parties who plan to marry, but cohabitation agreements are for couples who live together but are not legally married.
Here’s everything to know about creating and enforcing a cohabitation agreement in Calgary.
What Is a Cohabitation Agreement?
A cohabitation agreement in Calgary typically covers the division of property, assets, and debts if the unmarried partners separate.
If the cohabitation agreement in Calgary deals with property, it’s subject to the Family Property Act of Alberta (FPA Alberta). Section 38 of the FPA Alberta says that the agreement is only enforceable if you and your partner have each acknowledged in front of independent lawyers the following things:
- You are aware of the nature and effect of the agreement.
- You are aware of the possible future claims to the property.
- You are willing to give up the future claims to property to the extent necessary to give effect to the agreement.
- You are executing the agreement freely and voluntarily without compulsion.
- You have acknowledged the above notes in front of your lawyer who is separate and independent from your partner’s lawyer.
- You have been advised on the standard disclosure and how the law would treat you in the event of a separation.
What Is in a Cohabitation Agreement?
Every financial situation is unique, so no two cohabitation agreements will be exactly the same. Some assets or debts may be brought into the relationship, while others are acquired during it. It is important to discuss with your partner and respective lawyers what should be included in your cohabitation agreement.
Generally, a cohabitation agreement in Calgary can address various issues, such as how assets brought into the relationship will be owned or divided. Also, it deals with how you will handle assets and property purchased jointly or individually and how you will divide debts incurred during the relationship. The agreement can also determine who will keep the family home and who will be responsible for household and living expenses.
In addition, the agreement can outline parental responsibilities and rights towards children from a previous relationship. It will also include decision-making responsibilities for children from the current relationship. This agreement can outline details about partner maintenance or support payments, their amounts and duration, and inheritance rights in the event of death.
Who Needs a Cohabitation Agreement?
If you and your partner want clear and predictable guidelines for how your property and finances will be managed in the event of a separation, a legally enforceable Cohabitation Agreement is crucial. Keep in mind that the agreement may be subject to a Court’s review.
This agreement becomes especially important if you own property, either individually or jointly, or if you have accumulated significant assets that continue to grow. It is also essential if you own a business and want to ensure its future is secure if you separate, or if you have a farm or an interest in a family farm that you wish to protect.
Many couples hesitate to formalize their relationship and discuss how to divide assets in the event of separation. However, having this type of agreement in place can actually prevent complications in the future.
Those Who Can’t Have a Cohabitation Agreement in Calgary
Under the Adult Interdependent Relationships Act, certain individuals are disqualified from entering into a cohabitation agreement. Specifically, a person cannot enter into such an agreement if they are:
- Already a party to an existing adult interdependent partner agreement.
- Legally married.
- A minor, unless they are at least 16 years old and have obtained prior written consent from their guardians.
The Benefits of Having a Cohabitation Agreement in Calgary
Couples who never intend to marry can benefit from a cohabitation agreement as it gives them peace of mind. Also, it helps give them clarity and protection for personal assets and finances if the relationship breaks down.
Financial Clarity
The agreement clearly defines how assets and debts will be divided if the relationship ends. This reduces the likelihood of disputes and ensures that both parties understand their financial rights and obligations.
Protection of Assets
For those entering a relationship with significant assets, a cohabitation agreement in Calgary can safeguard individual property. It allows each partner to outline what they wish to retain as personal property, protecting these assets from being considered joint property.
Support Agreements
The agreement can include terms regarding spousal support, specifying if and how support will be provided in the event of a separation. This is particularly important if there is a significant income disparity between the partners and may be subject to review by the Court.
Customizable Terms
A cohabitation agreement in Calgary can be tailored to meet the specific needs and circumstances of the couple. This flexibility allows couples to address unique aspects of their relationship, ensuring that both partners feel secure and fairly treated.
Legal Recognition
Under Alberta law, cohabitation agreements are generally legally enforceable if properly drafted and signed. This means that the terms agreed upon will be upheld by the courts, providing peace of mind that your rights are protected.
How Calgary Family Law Associates Can Help With Your Cohabitation Agreement
Navigating the complexities of a cohabitation agreement can be challenging, but Calgary Family Law Associates is here to assist. Our expertise in family law provides comprehensive support to ensure your agreement is tailored to your needs and legally sound.
We offer personalized legal advice to ensure the agreement accurately reflects your unique circumstances, taking into account factors such as assets, debts, and future financial considerations.
Our team of family lawyers can help draft and review the agreement, ensuring that all legal requirements are met and that the terms are clearly defined and enforceable. Also, we can assist in negotiating terms between partners, aiming to reach a fair and amicable resolution. If needed, Calgary Family Associates can offer mediation services to resolve any disputes that may arise during the process.
Call Calgary Family Law Associates today to see how we can help you create a cohabitation agreement that works for you.