A cohabitation agreement in Canada is a written contract between two people who live together — or plan to — that sets out how property, debts, and support will be handled if the relationship ends. Without one, provincial family law fills the gap, and the default rules vary sharply from province to province. Unmarried partners in most of Canada have far fewer automatic property rights than married spouses, which means the stakes of going without this document are high.
Why common-law couples need this document
In Ontario, the Family Law Act does not extend equalization of net family property to unmarried couples. A partner who lives with someone for seven years and contributes to a jointly used home has no automatic claim on that home unless their name is on title — unless a court recognizes unjust enrichment. Proving unjust enrichment is expensive and uncertain. British Columbia takes a different approach: the Family Law Act 2011 treats unmarried spouses (those who have lived together for at least two years, or have a child together) similarly to married spouses for property division. Alberta's Matrimonial Property Act applies only to married couples; unmarried partners rely on common-law remedies like resulting trust.
The variation matters. If you move from BC to Ontario mid-relationship, your assumed protections disappear. A cohabitation agreement that says explicitly what each party owns and what happens to shared property removes that uncertainty.
What goes in a Canadian cohabitation agreement
The core sections of a solid cohabitation agreement cover four areas.
Property on entry. Each party lists what they own going in — real estate, vehicles, savings accounts, RRSPs, investments, and significant personal property. These assets stay with their owner if the relationship ends, regardless of how long you live together.
Property acquired together. The agreement specifies how jointly purchased assets will be divided, or whether they will be held in specified proportions. A couple who buys a house together with a 60/40 down-payment contribution will often want the agreement to reflect that split rather than defaulting to an equal half-and-half assumption.
Debt allocation. Pre-existing debts stay with the person who incurred them. Debts taken on jointly — a mortgage, a shared line of credit — need explicit language about who is responsible for what share on breakdown.
Spousal support. Unmarried spouses can claim support under provincial family law in most provinces once the relationship qualifies (in Ontario, after three years of cohabitation, or sooner if there is a child). The agreement can limit, waive, or structure support obligations, though courts retain some discretion to override a waiver that would leave one party in extreme hardship. The Supreme Court of Canada confirmed in Miglin v. Miglin, 2003 SCC 24, that freely negotiated agreements between informed parties carry significant weight, even when one party later prefers different terms.
Independent legal advice: the one requirement that makes or breaks enforceability
A cohabitation agreement signed without independent legal advice (ILA) for each party is vulnerable to challenge. Courts in Ontario and BC have set aside agreements where one party had no access to legal counsel, or where the same lawyer purported to represent both. ILA does not mean both parties use lawyers from the same firm — each party needs a separate lawyer who reviews the agreement and advises on its implications for that specific person.
The ILA certificate, usually a short declaration signed by each party's lawyer, is appended to the agreement. Without it, a party who later claims they did not understand what they were signing has a much stronger argument for setting the agreement aside.
Financial disclosure
Full financial disclosure is a precondition for a binding cohabitation agreement. The agreement should include or attach schedules listing each party's assets, liabilities, income, and approximate values. British Columbia's Family Law Act s. 93 specifically provides that an agreement may be set aside if one party failed to disclose significant property or debts before the agreement was signed.
The disclosure does not need to be audited-financial-statement precise, but it must be honest and reasonably complete. Hiding a significant investment account or a personal loan defeats the purpose and exposes the agreement to later attack.
How to write a cohabitation agreement: the steps
Step 1 — List all pre-relationship assets. Each party independently prepares a schedule: bank accounts with approximate balances, investment accounts, property (with estimated current value and any mortgage outstanding), vehicle values, and significant personal items. Date this list.
Step 2 — Agree on the key terms before drafting. Trying to draft and negotiate at the same time is inefficient and can increase legal costs. Discuss property division, support, and any specific arrangements (such as what happens if one party leaves the workforce to care for children) before you sit down with a template or a lawyer.
Step 3 — Use a template as a starting structure. A free Canadian cohabitation agreement template gives you the standard sections and the language needed to capture ownership, debts, support, and division on separation. Fill it out with your specific terms before taking it to lawyers — this reduces the time (and cost) lawyers spend on basic drafting.
Step 4 — Each party takes the draft to their own lawyer. The lawyer reviews the draft for completeness, advises on whether the terms are fair and enforceable in your province, and signs an ILA certificate. Lawyers may suggest amendments; both parties need to agree before the document is finalized.
Step 5 — Sign with witnesses. Each party signs the agreement in the presence of a witness who is not the other party and not a party's lawyer. Two witnesses — one for each party — is cleanest. Keep the original. Both parties get a copy.
Step 6 — Update when circumstances change. Marriage converts a cohabitation agreement into a domestic contract under provincial law (in Ontario, under s. 53 of the Family Law Act). The birth of a child, a major asset acquisition, or a significant income shift are all good reasons to revisit and amend the agreement. An amendment follows the same process: written, signed, witnessed, and each party advised.
Province-specific points to know
Ontario: The Family Law Act governs. A cohabitation agreement automatically becomes a marriage contract if the parties marry (s. 53(2)). Courts can set aside terms relating to children's custody or access if they conflict with the child's best interests; financial terms are generally respected.
British Columbia: The Family Law Act 2011 gives unmarried spouses (after two years together, or with a child) rights roughly equivalent to married spouses for property division. This makes BC agreements particularly important for short-term relationships — the two-year clock starts quickly. Section 93 allows courts to set aside agreements for significant non-disclosure, duress, or unconscionability.
Alberta: Common-law couples (adult interdependent partners under the Adult Interdependent Relationships Act) can claim property rights after three years or after any period if there is a child. The agreement should name the parties as adult interdependent partners and address both property and support under the Act.
Quebec: Quebec civil law does not recognize common-law unions as creating automatic spousal property rights. A cohabitation agreement between de facto spouses can structure the relationship and is enforceable under the general rules of contract in the Civil Code of Québec, but Quebec unmarried partners have essentially no default rights on breakdown — making a written agreement even more important, not less.
Common mistakes that make agreements fail
Vague language about what happens to a shared home is the source of most disputes. "We will divide it fairly" is not a term a court can enforce — use percentages, specific buyout formulas, or a forced-sale mechanism with a timeline.
Failure to update after marriage is another recurring problem. The couple drafts a tight cohabitation agreement, then marries and assumes it still applies. In Ontario it does, automatically, but the couple should confirm the terms still reflect their intentions.
Signing under pressure — the night before moving in together, or during a disagreement — creates duress arguments. Sign the agreement well before the planned cohabitation date, with time for proper legal review.
The difference between a cohabitation agreement and a domestic contract
In Canadian family law, "domestic contract" is the umbrella term in provincial legislation for marriage contracts, cohabitation agreements, and separation agreements. A cohabitation agreement is the specific form used by couples who are not (yet) married. The formalities — writing, signature, witness, ILA — are the same across all domestic contract types in most provinces. The practical difference is that a separation agreement documents the end of a relationship, while a cohabitation agreement anticipates and plans for the possibility of one. Both draw on forms-legal.com's document library as practical starting points.
A well-drafted cohabitation agreement protects both parties — the one with more assets and the one with fewer. The person bringing less into the relationship has an interest in ensuring any contributions they make (to a mortgage, to shared savings, to the household) are recognized. The person bringing more has an interest in protecting pre-relationship wealth. Clear terms remove the ambiguity that makes litigation possible.
Need the document itself? Download the free template →
This article is general information, not legal advice — see our accuracy & editorial policy. Confirm the cited law is current before relying on it.