Unmarried and Living Together: Why a Cohabitation Agreement Matters
More couples are choosing to live together without getting married. While this is increasingly common, many people do not realize that unmarried couples often have the same financial obligations to one another as a married couple upon separation. A cohabitation agreement can play a critical role in clarifying rights, reducing uncertainty, and protecting both partners if the relationship ends.
A cohabitation agreement is an agreement between two people who live together, or are planning to live together, but are not married. In British Columbia, these agreements are recognized under the Family Law Act and can deal with property, debt, income, and financial responsibilities during the relationship and after separation. When properly prepared, courts will generally respect and enforce them.
Why Cohabitation Agreements Are Especially Important in BC
In British Columbia unmarried couples may be considered spouses if they have lived together in a marriage-like relationship for at least two years, or sooner if they have a child together. Once that threshold is met, property division rules under the Family Law Act can apply. This means that the default legislation surrounding separations may apply.
A cohabitation agreement allows couples to define their own rules rather than relying on default legislation. It can confirm that certain property remains excluded, explain how jointly purchased assets will be treated, and clarify how expenses are shared.
For example:
- Will both partners be responsible for one partner’s student loans?
- What happens to the family pet if the relationship ends?
- How will day-to-day household expenses be divided?
- What property did each partner bring into the relationship?
What This Means for Couples Living Together in BC
A well-drafted cohabitation agreement can provide clarity and protection. The agreement should reflect the parties wishes and be prepared with proper legal advice. Couples should also be cautious about making informal financial arrangements that contradict their written agreement.
For couples, a cohabitation agreement is not about planning for a breakup. It is about understanding the legal landscape and making informed choices about property and finances while the relationship is strong.