The Dos of a Cohabitation Agreement in Ontario
Creating a strong and valid cohabitation agreement involves more than just a handshake or verbal promise. Here are the best practices to follow when drafting your agreement.
Do Be Honest About Your Finances
Importance of Full Financial Disclosure
Before signing a cohabitation agreement, both parties must fully disclose their financial situation. This includes income, debts, assets, and liabilities. In Toronto, the courts expect both partners to enter into the agreement with a clear understanding of each other’s financial standing.
Avoiding Future Claims of Unfairness or Invalidity
Failing to disclose financial information may render the agreement invalid or lead to legal disputes down the road. If one party later discovers hidden assets or debts, they could challenge the agreement in court, claiming it was based on incomplete or misleading information.
Do Seek Independent Legal Advice
Why Each Partner Should Have Their Own Lawyer
To ensure fairness and avoid conflicts of interest, both partners should seek independent legal advice. This means hiring separate lawyers to explain the terms, rights, and implications of the agreement.
Legal Advice Ensures Enforceability and Understanding
When each person understands the legal consequences of the agreement, they’re less likely to contest it in the future. Courts in Toronto are more likely to uphold a cohabitation agreement if it’s evident that both parties entered into it voluntarily and with a full understanding of their rights.
Do Customise the Agreement to Your Needs
Every Relationship is Different—Avoid One-Size-Fits-All Templates
Many online templates offer basic cohabitation agreement formats, but they rarely reflect the unique dynamics of your relationship. In Toronto, couples come from diverse cultural, financial, and family backgrounds—meaning your agreement should be tailored to suit your specific situation.
Include Clauses That Reflect Your Current and Future Plans
Whether you’re planning to buy property together, have children, or keep finances separate, your cohabitation agreement should clearly outline these expectations. You can include clauses regarding shared expenses, property ownership, inheritance, debt responsibility, and spousal support in the event of a breakup.
Do Keep It Up to Date
Update After Major Life Changes (Buying a Home, Having Children, Career Shifts)
Your agreement should evolve as your relationship does. If you buy a house together, have children, start a business, or experience a significant shift in income, it’s essential to revisit your agreement to reflect these new realities.
Regular Reviews Help Keep the Agreement Relevant
Make it a habit to review your cohabitation agreement every few years or after a major life event. This ensures that your agreement remains enforceable and aligned with your intentions, helping to avoid future misunderstandings or legal issues.
The Don’ts of a Cohabitation Agreement in Ontario
While knowing what to do is essential, understanding what not to do is just as critical when creating a legally sound cohabitation agreement in Toronto. Here are common mistakes to avoid.
Don’t Use Verbal or Informal Agreements
Verbal Promises Are Not Enforceable Under Ontario Law
Even if you and your partner trust each other completely, a handshake or spoken promise won’t hold up in court. Under Ontario’s Family Law Act, only written cohabitation agreements that are signed and dated are considered legally enforceable.
Importance of Having a Written, Signed, and Dated Document
A formal written agreement removes ambiguity and provides clarity if disputes arise. It ensures that both parties are on the same page about property division, financial obligations, and other key matters. To be enforceable in Toronto courts, the document must be properly executed.
Don’t Hide Assets or Debt
Non-Disclosure Can Lead to the Agreement Being Overturned
If one partner hides income, assets, or significant debts during the drafting of the agreement, the entire document may be invalidated later. Ontario courts take financial disclosure very seriously, especially when one party claims they were misled.
Transparency Builds Trust and Legal Protection
Being honest about your financial situation isn’t just a legal requirement—it’s a foundation for a strong relationship. Full disclosure shows respect for your partner and helps both parties make informed decisions when entering the agreement.
Don’t Wait Until It’s Too Late
Best Created before Moving in Together
The ideal time to draft a cohabitation agreement is before you move in together. This allows both parties to negotiate terms while emotions are neutral and before any potential conflicts arise. In Toronto, many legal professionals recommend discussing the agreement early in the relationship when plans are being made to cohabitate.
Waiting Until After a Dispute Arises Can Complicate the Process
If you wait until a disagreement occurs—or worse, until the relationship is ending—the agreement can feel one-sided or coercive. Courts may view agreements made under pressure or emotional strain as unfair or invalid, especially if independent legal advice wasn’t sought.
Don’t Rely Solely on Online Templates
Risks of Overlooking Critical Clauses
While online templates can serve as a starting point, they rarely address the specific legal nuances that apply in Ontario. Important provisions—like how to handle future property purchases, spousal support, or estate planning—are often missing or overly generic.
Legal Guidance Ensures the Agreement Holds Up in Court
Only a qualified family lawyer in Toronto can ensure that your cohabitation agreement meets Ontario’s legal standards. Customised legal advice helps ensure the agreement is comprehensive, enforceable, and reflective of your unique circumstances.
Don’t Have a Cohabitation Agreement in Ontario?
How Common Law Relationships Are Treated in Ontario
Under Ontario law, common law couples do not automatically share property acquired during the relationship. Unlike married couples, there is no equal division of property unless both names are on the title or an agreement says otherwise. However, claims for spousal support or unjust enrichment can still be made.
Risks of Property Disputes and Spousal Support Claims
Without a written cohabitation agreement, you may face unexpected claims—such as one partner demanding a share in a house they didn’t pay for or seeking spousal support after separation.
Real-Life Examples of Avoidable Legal Conflicts
In Toronto, there have been numerous cases where one partner was awarded a portion of a home or spousal support due to lack of an agreement and years of financial contribution. These disputes are not only emotionally draining, but they can also lead to significant financial losses—losses that could have been prevented with a properly executed cohabitation agreement.
Drafting a Strong Agreement: Toronto Legal Resources
Choosing a Toronto Family Lawyer
When drafting your agreement, it’s essential to work with a qualified family lawyer in Toronto who specialises in domestic contracts. Look for a lawyer who understands both provincial family law and the unique needs of common law couples. Many family lawyers in Toronto offer flat-fee packages for cohabitation agreements, making the process clear and predictable.
Legal Clinics and Affordable Options for Low-Income Couples
If you’re concerned about cost, Toronto is home to several legal clinics that provide free or low-cost family law services. These include Downtown Legal Services, The Barbra Schlifer Commemorative Clinic, and Legal Aid Ontario, which may offer support depending on your income level. These clinics can help you understand your rights and prepare a basic agreement under legal supervision.
Services Offered by Local Legal Professionals
Toronto-based family lawyers can provide a range of services, including:
- Drafting or reviewing a cohabitation agreement
- Offering independent legal advice for both partners
- Updating or revising existing agreements
- Assisting with notarization and witnessing of documents
Having access to these local resources ensures that your agreement is tailored, compliant with Ontario law, and enforceable if challenged.
As a Divorce and Family Lawyer in Toronto, I regularly write blog articles to share insights, tips, and resources on divorce, child custody, separation agreements, and other family law matters in Ontario. Follow my blog to stay informed and gain valuable knowledge to help you make informed decisions during difficult times.
