So you are moving in together......

Aaaaaaa, new beginnings………

You are moving in together, and your head is filled with images togetherness, happiness, partnership and harmony. That is how things should be.

But it is wise to think ahead and no, it does not have to spoil the romance.

A Cohabitation Agreement is a wise way of addressing in advance the possibility of a separation. Yes, it can also address your financial responsibilities, as a couple, during the relationship. If you are wondering whether a Cohabitation Agreement is right for you, consider the following issues, which I have listed for you to think about but which are by no means an exhaustive list:

1. Are you moving into a place, a home or a condominium, for example, which is already owned by one of you? Or do you own it together but one of you contributed a larger deposit? If that is the case, irrespective of whether you are cohabiting or have plans to marry, you may wish to address this issue in advance, in your Cohabitation Agreement. What will happen to the residence on separation? Will the person who is not on title be entitled to any share of the value of the residence? How will you deal with potential financial or money's-worth contributions to the residence once the relationship commences and before the separation?

2. How will your household together be funded? Will you be dividing the expenses equally, for example? Will you split responsibility for the expenses so that one of you takes care of the utilities and the other pays for the groceries? Will your contributions be based on the levels of your respective incomes?

3. If a separation takes place, will the person who is not on title be expected to move out immediately? What if the separation is triggered by the other?

4. What if at the time you are moving in together, one of you is working full-time and the other is still in school, completing a program, for example, which would in the future benefit both of you? What will happen when you separate?

5. Will the Cohabitation Agreement automatically turn into a Marriage Contract if you decide to marry? That is a possibility. Given the provisions of the Family Law Act, will your Marriage Contract treat the property you are moving into, which one of you owns, as “excluded” property? Will that property be shielded from division with the other if the marriage ends in a separation?

Cohabitation Agreements can address a wide variety of subjects and in some instances, based on specific facts, are not as straightforward as one might think. I am of the view that addressing these issues in advance is wise, and two people who are embarking on a life together should learn to be comfortable discussing with one another subjects which might sound difficult for some, including financial matters. Addressing these issues in advance will clarify your respective rights and obligations, and do away with any misunderstandings.

©AJJakubowska