Did you know that common-law couples can agree on a cohabitation agreement? Often referred to as a "cohabitation contract", the cohabitation agreement for common-law partners defines the obligations of two partners during their union.

So why should you put on paper things that seem so obvious to your couple, especially when everything is going well? Because first of all, this contract allows you to foresee the rights and obligations towards each other, but also the way in which the life partners wish to divide their assets in case of a break-up. This agreement also provides for contributions and responsibilities during their life together.

Moreover, if this agreement is drafted and ratified by a notary or a family law specialist, it provides excellent protection against the ups and downs of partnership.

How is a common-law relationship defined?

A common-law relationship is a relationship between two unmarried people. They become common-law partners when they live under the same roof for more than a year or when they have responsibility for a child together. Despite the stability of their relationship, Quebec law does not give them the protections normally reserved for married spouses... hence the extreme importance of agreeing on a contract that is legal in the eyes of the law!

The cohabitation agreement is clearly useful!

At the outset, you should know that if a couple separates, the common-law spouse is not entitled to the protection of the family residence, the division of property or the support usually granted when the two partners are married. Furthermore, this same spouse will not be automatically entitled to an inheritance upon the death of the person who shares their life, unless this legacy has been duly provided for in a will.

In Quebec, nearly 40% of couples are in common-law relationships and two-thirds of Quebec children are born outside of marriage. Many of these unions find themselves in a situation of financial instability in the event of a separation. All the more reason to plan and prepare measures for the eventual division of family property.

What form does this take?

A cohabitation agreement can take many forms as long as it complies with the law. The notarized form is of course strongly suggested. Difficult to oppose, in addition to being carefully preserved at the notary's office, this document brings together rules that generally apply the same conditions as those relating to the vast majority of signed contracts.

What does it contain?

You can include a number of provisions that cover the following: formalization of ownership of the joint residence, administration and division of property during cohabitation, donation of furniture and other property, disposition of the joint residence in the event of separation or death, entitlement to support between common-law partners after separation, division of certain property following separation, and more.

Of course, if you feel the need to set up a cohabitation agreement, don't hesitate to ask for help in doing so.

At Mortgage Planners, our consultants are able to direct you to professionals who have the necessary information to understand your situation.

Alternatively, by contacting the Chambre des Notaires du Québec, you will be skilfully guided as to the steps to follow to start the process leading to the signing of a cohabitation agreement... the peaceful development of your couple depends on it!