If you’re living with a partner or planning to move in together, understanding your legal rights and obligations is crucial. Many people assume that simply living together does not create financial or legal ties, but in British Columbia, common-law relationships can lead to significant legal responsibilities—sometimes even affecting your assets and financial future.
To protect yourself and your interests, it’s advisable to have a cohabitation agreement in place. Here’s why:
What is a Cohabitation Agreement?
A cohabitation agreement is a legally binding contract between two people who live together in a marriage-like relationship. This document outlines important financial and legal matters, helping both partners establish clarity regarding their rights and responsibilities.
These agreements typically address:
✔ Ownership of assets brought into the relationship
✔ Division of property acquired during the relationship
✔ Financial obligations such as shared expenses
✔ Debt responsibility—who is liable for what
✔ Spousal support terms if the relationship ends
✔ Plans for jointly owned property (e.g., whether to sell a home or allow one partner to buy the other out)
Why Should You Have a Cohabitation Agreement?
A cohabitation agreement provides legal protection for both partners. Key benefits include:
📌 Asset Protection – Ensures each partner retains ownership of their personal property.
📌 Debt Protection – Prevents one partner from being held responsible for the other’s financial liabilities.
📌 Legal Clarity – Reduces uncertainty about financial responsibilities and rights.
📌 Future Security – Outlines what happens in the event of a separation, minimizing legal disputes.
Even if you are not legally married, you may still have legal obligations toward your partner, particularly if you co-own property, share finances, or have children together. Having an agreement in place safeguards your interests.
Types of Cohabitation Agreements in BC
In Vancouver and BC, cohabitation agreements can vary depending on the couple’s needs. Common types include:
🔹 Confirmation Agreements – Simply state the date when the partners became common-law but do not outline financial arrangements.
🔹 Financial & Household Responsibility Agreements – Define who pays for what during the relationship, such as rent, bills, and household expenses.
🔹 Separation-Only Agreements – Focus solely on asset division, debt responsibilities, and spousal support in the event of a breakup.
🔹 Comprehensive Agreements – Cover both financial obligations during the relationship and terms for separation. These are the most commonly used agreements.
How Much Does a Cohabitation Agreement Cost in BC?
The cost of drafting a cohabitation agreement varies based on factors such as income, assets, children, and financial complexity. In general:
💰 Basic agreements: $2,500+ (plus taxes)
💰 Complex agreements: Up to $50,000 (for high-net-worth individuals or extensive financial arrangements)
Fees typically cover:
✅ Initial consultation & legal advice
✅ Drafting and revising the agreement
✅ Negotiations between parties
✅ Providing independent legal advice before signing
✅ Finalizing and executing the contract
Are Cohabitation Agreements Legally Binding in BC?
Yes—if properly drafted, a cohabitation agreement is fully enforceable under BC family law. However, to ensure its validity, the agreement must:
✔ Be created with full financial disclosure from both parties
✔ Follow British Columbia’s legal guidelines (rather than generic online templates)
✔ Be signed without coercion or undue pressure
✔ Avoid fraud, misrepresentation, or significant unfairness
Agreements that fail to meet these requirements may be challenged in court.
Can You Draft Your Own Cohabitation Agreement?
While you can create your own agreement, a DIY contract may not hold up in court if it does not meet legal standards. To ensure enforceability, it’s best to work with a family lawyer who can:
🔹 Ensure full legal compliance with BC law
🔹 Protect your rights and assets
🔹 Prevent future disputes by covering all key legal aspects
Plan for the Future with a Strong Legal Agreement
A cohabitation agreement is one of the smartest steps you can take to secure your financial future and prevent unexpected legal complications. Whether you are already cohabiting or planning to move in together, taking proactive legal steps can save you from costly disputes later on.