Is a Cohabitation Agreement or Marriage Contract for me?

A cohabitation agreement is for anyone who wants to protect their assets, provide predictability on separation and to determine any support obligations or rights they may have on separation.

A marriage contract is the same, only it contemplates that the parties will ultimately marry or have immediate plans to marry. A cohabitation agreement may contain a clause that it will automatically be construed as a marriage contact upon the marriage of the parties.

Often these contracts will determine how property will be divided between the parties on a breakdown of the relationship. For common-law couples they can make clear that there are no claims available for either party to make against assets of the other. For married couples, they determine if they want to be subject to equalization or choose to have ownership govern division. Either way, it is an opportunity for parties to take control over their potential breakdown and make choices on what that may look like to avoid unnecessary disputes later.

Spousal support is often addressed in the agreement and parties may choose to waive it entirely or limit the circumstances in which it may be claimed and paid. For example, maybe the parties will only pay spousal support after 10 years of marriage, or after there are children present, or not at all if there is a specified discrepancy in income between them or no children ever born into the relationship.

An important limitation of cohabitation agreements and marriage contracts is that they cannot determine parenting issues.

A cohabitation agreement may be signed at any point during the relationship, although we would prefer that they be signed well before moving in together to avoid any increased challenges in negotiating the terms of the contract. A marriage contract should be signed at least three months prior to marriage to ensure that it is free from any potential claims of duress later on.

A cohabitation agreement or marriage contract has an important role in minimizing future disputes and making the transition after a breakdown much less stressful. If you find yourself curious about the role these contracts may play in your life, contact us for a consultation to discuss in more detail.