Cohabitation Agreements

What you need to know about prenuptial or cohabitation agreements...

What is a prenuptial or cohabitation agreement?

A prenuptial (pre-nup) or cohabitation (cohab) agreement is a contract that is made before you get married or move in together with someone. It's a legally binding contract that formalizes your relationship and outlines how assets and liabilities will be divided and protected if the relationship ends. It sets out the terms, conditions, and responsibilities each person has if their relationship ends.

Getting a co-hab agreement is a way to consider the financial responsibilities and obligations of getting married, living together before you get married, or living together in common-law.

Although pretty much the same thing, it's important to know the difference between pre-nup and cohab agreements. A prenup is for couples who are considering a formal and legal marriage. A cohab agreement is for couples who are not formally married but choosing to live an adult interdependent relationship (aka in common-law).

What's included in a cohab or prenup agreement?

In both a prenuptial agreement and cohabitation agreement, you can protect and divide the following things:

• Separate and joint property;

• business interests;

• anticipated family inheritance;

• possible spousal support claims;

• life insurance policies;

• pensions;

• cash/savings;

• investments; and

• debts, such as mortgages and credit cards.

Also, the agreement can cover any separate and joint liabilities.

NB: A prenuptial or cohabitation agreement, can't include child custody, parenting plans, and child support.

Why you need a cohabitation or prenuptial agreement...

Adults are getting into relationships later in life and as a result, accumulating more of their own financial assets. The more independent assets you accumulate, the greater the need to protect those assets should a relationship break down. For example, ParalegalPlus has worked with clients where one of them owns a business, property, has an inheritance, or has debt, a prenuptial agreement or cohabitation agreement is a safety net for both parties. Also, consider if people have children from previous relationships, a prenup or cohabitation agreement protects assets for the children.

ParalegalPlus is here to help you draft your prenuptial or cohabitation agreement. Contact us today to book your free, no-obligation consultation.