Domestic agreements
cohabitation and marriage
Domestic Agreements allow couples to decide their rights and obligations in the event they ever separate. Instead of allowing provincial laws to decide who gets the house, the jewelry, or their retirement investments, the couple takes ownership of their own fate and agrees how property division, and support obligations, will take place if the relationship ends.
When a couple has a signed domestic agreement, this document becomes their separation agreement in case of separation. This avoids conflicts, preserves the relationship post-separations and minimizes legal fees expenses.
When people are together in a romantic relationship, however, they have no intention of ever separating. They don't want to think about it, nor start discussions about this being a possibility.
Why should i pay to prepare a document that i have no intention to use?
Some people may stay in a relationship that does not fulfill them anymore because they are afraid of dealing with the separation. You don't a partner or spouse that stays in the relationship because they are scared of leaving. You want someone who stays with you for the right reasons.
You have so much respect to your partner or spouse that you want to ensure you will continue to have a respectful relationship when, and if, the romantic love is over. A domestic contract helps keeping conflict low after separating.
When preparing a domestic contract, you will have the chance to learn more about your partner or spouse: what is important to them, what are their fears, what they want to preserve.
It is easier to discuss and negotiate property division and support obligation when the couple is still together, not dealing with resentment of a perceived failure in the relationship.
Divorce rates in Canada are close to 40%. Unfortunately, it is not a surprise when a couple separates.
The costs of preparing a Cohabitation Agreement or a Marriage Contract are considerably lower than the costs of separating without having a domestic contract, even in low conflict situations.
If you ever separate, you want to be able to have closure and move forward sooner rather than later.
Cohabitation agreements
In Ontario, generally, you are considered spouses after three years of cohabitation or if you have children together. In these cases, the provisions of the Family Law Act apply. However, there are court decisions establishing support obligations even in cases where the couple never lived together.
A Cohabitation Agreement will give you the peace of mind of knowing what happens in case you separate. In general, common-law partners, in Ontario, are not entitled to property claims other than the Matrimonial Home. If the property is in both names and you both contributed to it equally, this may not be a big issue. Many times the situation is more complicated. Maybe one person owned the property before the relationship ever started. Other times just one may hold legal ownership of the home, even though both partners contributed to it, which may end in a complicated unjust enrichment claim.
You will not need to worry about this once you have an agreement signed.
Move-in worry-free.
Marriage contracts
Married couples are subject to the Divorce Act and to the provincial Family Law Act in case of separation.