Why You Need a Cohabitation Agreement in BC

Are you moving in with your partner, or already living together in British Columbia?

The law treats long-term unmarried relationships more seriously than many people expect. Unless it is your intention to share some of your financial assets with that person, there is a good chance that you are (or will be) putting yourself at unnecessary financial risk if you and your partner do not have a Cohabitation Agreement. A Cohabitation Agreement is a practical and proactive way to manage your rights, protect your assets, and avoid future disputes.

What Is a Cohabitation Agreement?

A Cohabitation Agreement is a legal contract between two people who live together or plan to live together. This Agreement sets out how you will handle property, debt, and money during your relationship and, if the relationship ends, how those matters will be
resolved. A Cohabitation Agreement can be made before or after moving in together.

When Are You Considered a “Spouse” in BC?

Under British Columbia’s Family Law Act, you are considered a “spouse” if you have lived together in a marriage-like relationship for at least two years, or you have a child together.
Once you are considered spouses, both partners have legal rights to property and may be entitled to (or responsible for) spousal support—even if finances have always been kept separate. These rules apply to same- and different-sex couples.

What Happens Without a Cohabitation Agreement?

Without a Cohabitation Agreement, all property and debts acquired during your relationship will generally be split equally if you separate. These rules capture real estate, pension contributions, investments, and debts in either person’s name. Property brought into the relationship or received as gifts or inheritances is generally excluded, but if you mix this property into shared accounts or use it for joint purposes, it may lose its excluded status. Any increase in the value of excluded property—like equity in a
home—will usually be shareable.

If, for example, you move in with your partner and your home increases in value, your partner could be entitled to half of that increase. If your partner takes on debt, you may be responsible for your share—even if the debt was not for your benefit.

What Can You Put in a Cohabitation Agreement?

A Cohabitation Agreement can cover:

the division of property, assets, and debts at the end of a relationship;
how gifts, inheritances, settlements or windfalls are treated;
Arrangements for spousal support (whether it is paid, how much, and for how long); and
how day-to-day expenses will be managed in your household.

A Cohabitation Agreement or Family Agreement cannot override laws about child support or parental responsibilities. If children are involved after separation, courts always have the final say and will act in the child’s best interests, no matter what the Agreement says.

What Makes a Cohabitation Agreement Enforceable?

Your Cohabitation Agreement or Family Agreement should be:

in writing and signed by both partners;
based on full and honest financial disclosure;
entered into freely—without unfair pressure or undue influence; and
ideally, reviewed by independent lawyers for each person (“independent legal advice”).

If you skip these requirements, your Agreement might be set aside or otherwise interfered with in court, especially if one partner later claims they did not understand the agreement or were pressured into signing.

Why Get Legal Advice Before Signing?

A lawyer experienced with Cohabitation Agreements and Family Agreements will ensure your Agreement is detailed, enforceable, and tailored to your unique circumstances. Professional advice helps avoid common mistakes and creates an Agreement that holds up if challenged in court.

Key Benefits of a Cohabitation Agreement

Control how property, debt, and financial obligations are divided
Reduce the risk of lengthy, expensive court battles
Protect excluded property and manage support expectations
Avoid uncertainty and stress if your relationship ends

Take the Next Step

A Cohabitation Agreement or Family Agreement gives both partners certainty and peace of mind. Don’t put your future at risk by leaving important matters to chance. Speak to a family lawyer to discuss your situation and get the Agreement that’s right for your needs.

There are various options in terms of the legal services available to assist with Cohabitation Agreements and other Family Agreements. We at Waterview Law offer what are known as “unbundled services” or “limited scope retainers”, often at fixed rates, to
provide our clients with greater flexibility, control and billing transparency.