Are you and your partner planning to move in together in British Columbia? Or perhaps you are already living in a common-law relationship and are wondering about your rights. If so, you need to understand the importance of a cohabitation agreement.
In BC, the law treats common-law couples specifically those who have lived together in a marriage-like relationship for at least two years with the same rights as married spouses regarding property division and spousal support upon separation. This guide will provide a detailed, clear explanation of a cohabitation agreement, its legal role, and why it is a crucial document for any couple living together in BC.
What Exactly Is a Cohabitation Agreement?
A cohabitation agreement is a legally binding contract signed by two people who are living together, or planning to live together, in a marriage-like relationship but are not legally married. It is a proactive document that allows a couple to define their financial and property rights and responsibilities during their cohabitation and, most importantly, in the event of a separation or death.
This agreement acts as a relationship blueprint a way for partners to establish their own rules instead of defaulting to the rules set out in the BC Family Law Act. While discussing separation may feel uncomfortable, establishing clear terms upfront is a step toward protecting both partners and building a stronger, more secure relationship.
Cohabitation vs. Marriage Agreements
The term cohabitation agreement applies to couples who are not married. If the couple subsequently decides to marry, this agreement can automatically convert into a marriage agreement (sometimes called a prenuptial agreement), provided the document includes a specific clause outlining this conversion. This prevents the need to draft a whole new contract upon getting married.
The Problem: Default BC Law and Common-Law Spouses
Many common-law couples are unaware that after living together for a short period, the law automatically assigns them rights and obligations that they may not have agreed upon. This lack of clear, shared expectations is the primary driver of legal disputes upon separation.
The “Two-Year Rule” in British Columbia
Under the BC Family Law Act, a couple who has lived together in a marriage-like relationship for at least two years is considered “spouses” for the purpose of dividing family property and debt, and for spousal support claims.
| Status | Duration of Relationship | Rights Upon Separation (BC Family Law Act) |
| Common-Law Spouse | Two years or more | Equal division of family property & debt, and potential spousal support. |
| Common-Law Spouse | Less than two years but have a child together | Potential spousal support, but no equal property/debt division. |
| Married Spouse | Any duration | Equal division of family property & debt, and potential spousal support (requires divorce). |
If you separate after the two-year mark without a cohabitation agreement, you are subject to the default rules: family property (assets acquired from the date of cohabitation) and family debt are presumed to be divided equally (50/50). For many couples, especially those with significant assets brought into the relationship, this default 50/50 rule is considered unfair.
The Challenge of Blended Families
A common challenge is when one or both partners have children from a previous relationship. Without a clear agreement, a partner’s personal assets or future inheritance intended for their children could become subject to division with their new partner. A cohabitation agreement is essential for protecting the interests of the next generation by clearly defining what remains excluded property.
Taking Control with a Cohabitation Agreement
A cohabitation agreement is your opportunity to opt out of the default government rules and create a customized framework that reflects your unique relationship, financial contributions, and shared values. It shifts the power from a judge relying on general law to you and your partner making informed, mutual decisions while the relationship is amicable.
Key Benefits of a Cohabitation Agreement in BC
- Protect Individual Assets: It safeguards property and assets you owned before the relationship (known as excluded property), such as inheritances, gifts, or a home.
- Clarify Debt Responsibility: You can clearly define who is responsible for which debts both pre-existing and those acquired during cohabitation avoiding one partner being unfairly burdened.
- Prevent Future Conflict: By addressing complex issues like asset division and spousal support while you are on good terms, you greatly reduce the potential for costly, emotional, and time-consuming legal disputes if the relationship breaks down.
- Establish Spousal Support Terms: The agreement can specify whether spousal support will be paid, and if so, how much and for how long, allowing you to deviate from the uncertain outcomes of court-ordered support.
- Provide Peace of Mind: Knowing that your financial future is protected, regardless of the relationship’s outcome, allows you to focus on building a healthy partnership. This investment is like an insurance policy for your financial life.
What Must Be Included in a BC Cohabitation Agreement?
A well-drafted cohabitation agreement is detailed and covers a wide range of current and potential future issues. In BC, these agreements must address financial and property matters, but they cannot determine child custody or child support, as these are always decided based on the best interests of the child at the time of separation.
Core Provisions to Include
- Property Division: This is the most critical section. It should list all property brought into the relationship (excluded property which typically remains separate) and define how property acquired during the relationship (family property) will be divided.
- Example: Specifying that the growth in value of a pre-owned primary residence is still excluded, or that a specific investment account will remain separate property.
- Debt Responsibility: Clearly stating who is responsible for which debts, including credit cards, student loans, and mortgages, both during and after the relationship.
- Spousal Support: Outlining the specific terms for spousal support, which may include waiving the right to support altogether, or setting a defined amount and duration.
- Household Expenses: Defining how the partners will share daily, monthly, or annual household expenses, which can be based on income percentage or a fixed amount.
- Estate Planning: Provisions on what happens to property and assets upon the death of one partner, often linked to the partner’s Wills.
- Dispute Resolution: A clause that mandates mediation or arbitration before resorting to court if a disagreement arises. This is a powerful tool to save time and legal costs.
| Financial Item | Default BC Law (No Agreement) | Cohabitation Agreement (Example Term) |
| Home Ownership | Value growth during cohabitation is split 50/50. | Only the financial contribution made by one spouse is returned; the rest is excluded. |
| Debt | Family debt incurred after cohabitation date is split 50/50. | All pre-existing debt and subsequent debt remains the responsibility of the individual who incurred it. |
| Spousal Support | Subject to uncertain court-ordered guidelines. | Support is waived by both parties, or fixed at a specific amount for a specific period. |
Legal Requirements for a Valid BC Agreement
For a cohabitation agreement to be considered valid and enforceable by a British Columbia court, there are several key requirements outlined in the Family Law Act that must be met. These steps ensure that both parties enter the agreement freely and with a complete understanding of what they are signing.
Three Pillars of Enforceability
- Must Be in Writing and Signed: The agreement must be a physical document, written clearly and signed by both parties. Verbal agreements are not enforceable.
- Witnesses Required: Both partners should sign the document in the presence of at least one witness, who must also sign the agreement.
- Full and Honest Disclosure: Crucially, both parties must provide full, transparent, and honest disclosure of all their financial assets, debts, and income before the agreement is signed. Failure to disclose significant assets is one of the primary reasons a court will set aside (cancel) an agreement for being substantially unfair.
Crucial Best Practice: Independent Legal Advice (ILA)
While not strictly mandatory to make the contract enforceable, both partners receiving Independent Legal Advice (ILA) from separate, family-law focused lawyers is considered the gold standard and drastically increases the chance that the agreement will be upheld by a court. ILA ensures both parties fully understand their rights and the impact the agreement has on those rights.
Frequently Asked Questions (FAQs)
1. What is a cohabitation agreement?
A cohabitation agreement is a legal contract between two people who live together or intend to live together without being married or in a civil partnership. It sets out how property, money, bills and other responsibilities will be handled during their relationship and what will happen if it ends.
2. Do unmarried couples have the same rights as married couples if they live together?
No. In many jurisdictions, living together does not automatically give you the same rights as married couples. Without a cohabitation agreement or similar legal framework, one partner may have very limited rights on separation or death.
3. What can a cohabitation agreement cover?
A cohabitation agreement can cover matters such as ownership of property, how household bills are shared, how savings or debts are dealt with, and what happens to assets if the partnership ends or one partner dies. However, some matters (for example child custody) may be outside its scope.
4. When should we sign a cohabitation agreement?
Ideally, you should sign a cohabitation agreement before you move in together or as soon as practical. It can also be done later, but the earlier you have clarity and legal advice, the better the protection.
5. Is a cohabitation agreement legally binding?
A properly drafted cohabitation agreement, signed by both parties with full financial disclosure and legal advice, will generally be recognised by the courts. But it may be challenged if unfair, unclear, or entered into under pressure.
6. Can we draft our own cohabitation agreement without a lawyer?
Yes, you can draft your own, but relying solely on a generic template may risk the agreement being unenforceable. Legal advice and full disclosure by both parties help make the document robust.
7. What happens to the cohabitation agreement if we later get married?
If you marry, the cohabitation agreement may either continue as a marriage contract, be modified, or be replaced by a prenuptial agreement, depending on your intentions and local law.
8. Should we update the agreement if our circumstances change?
Yes. If you buy property, have children, change jobs, or your financial situations change significantly, you should review and update your cohabitation agreement to reflect your current position.
9. What are the benefits of having a cohabitation agreement?
A cohabitation agreement provides clarity about rights and responsibilities, reduces the risk of future disputes, protects contributions to property, and gives both parties peace of mind in the event of separation or death.
10. Are there any drawbacks to having a cohabitation agreement?
Yes. It can feel awkward to negotiate before problems arise; it can create a sense of planning for failure; and if not executed properly it may not deliver the intended protection. But the risks of not having one may be greater.
Contact Freedom Family Law Today
Protecting your relationship and financial future starts with the right legal guidance. To discuss your rights and draft a legally sound agreement, contact Freedom Family Law today. Call (833) 338-2598 or book a free consultation with an experienced Cohabitation Agreement Lawyer who will guide you through every step.
Success Stories
⭐⭐⭐⭐⭐ Mathais Sarrazin was excellent to work with. He delivered exactly what he promised on time and kept me updated every step of the way. His follow-ups and prompt replies meant I never had to wonder what was happening. He is hardworking, patient, and very knowledgeable, always looking at the situation from a holistic perspective to give the best support. With his professionalism and great manner, I felt fully supported throughout the process. Highly recommended!
⭐⭐⭐⭐⭐ I had the pleasure of working with Mathais as my family lawyer, and I couldn’t have asked for a better experience. He was absolutely amazing; clear, timely, and incredibly informative throughout the entire process. Mathais took the time to explain everything in a way that made sense, always making sure I felt confident and well-informed before moving forward. I truly appreciate his support and would highly recommend him to anyone looking for a trustworthy and knowledgeable family lawyer.
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Conclusion
A cohabitation agreement is not a sign that you doubt your relationship; it is a mature, responsible, and proactive way to build a strong foundation of shared understanding and financial clarity. For couples in British Columbia, particularly those who have significant pre-existing assets or have been together for longer than two years, this legal document is essential for protecting your individual future and avoiding the emotional and financial burden of litigation.
By defining your terms now, you ensure that if the relationship ends, you can separate with dignity, certainty, and significantly lower costs. Don’t leave your financial future to default laws take control and create a customized plan that works for you.
Ready to protect your future together?
Contact Freedom Family Law today to get a personalized, affordable Cohabitation Agreement without ever leaving your home.
About the Author – Mathais Sarrazin
Mathais Sarrazin is the founder and principal lawyer at Freedom Family Law in British Columbia. A graduate of UVic Law (2012) and a proud member of the BC Bar since 2013, Mathais brings over a decade of experience helping couples and families protect what matters most.
Before founding Freedom Family Law, Mathais gained extensive courtroom experience in both criminal defense and family law, running Supreme Court trials within months of being called to the bar. That early exposure taught him one crucial lesson — many family disputes are preventable with the right planning and communication.
Today, Mathais focuses on helping BC couples create strong, transparent agreements that protect their rights, assets, and relationships. His approach is personal, responsive, and client-focused — he takes the time to understand each couple’s unique situation and offers flat-rate, transparent pricing to eliminate surprises.
When he’s not helping clients, Mathais enjoys spending time with his family and living the balanced lifestyle he encourages his clients to achieve.