Moving in with your partner is a major milestone – but beyond the excitement of picking out furniture or deciding whose Netflix account to keep, it’s also a time to talk seriously about protecting your financial future. In Ontario, that conversation often leads to one of the most overlooked tools in family law: the cohabitation agreement.

Unlike marriage, common-law relationships in Ontario don’t automatically grant the same legal protections when it comes to property, support, or separation. That’s why couples who are living together—especially those with assets, children, or financial obligations—are turning to cohabitation agreements as a smart, respectful way to define rights and responsibilities from the start.

At Aurigo Law, family law lawyer Arshi Chandel has helped countless clients prepare clear, enforceable cohabitation agreements that support fairness, protect individual property, and prevent conflict if the relationship ends.

This blog explains how cohabitation agreements work, why they matter, and how to get one that stands up in Ontario courts.

What is a Cohabitation Agreement?

A cohabitation agreement is a legally binding contract between two people who are either currently living together or plan to live together in a common-law relationship. Governed by Ontario’s Family Law Act, it outlines how financial matters will be handled during the relationship and in the event of a separation or death.

Cohabitation agreements are often compared to marriage contracts, but they serve a different purpose: while marriage comes with certain default rights, cohabiting couples don’t automatically share property or support obligations unless they create their own legal agreement.

💬 “Cohabitation agreements are about clarity—not conflict. They give couples a way to protect their interests while building a shared life,” says Arshi Chandel.

Benefits of Having a Cohabitation Agreement in Ontario

While these agreements aren’t required by law, they are strongly recommended—especially when:

• One or both partners own property or significant assets
• One partner is bringing debt into the relationship
• The couple wants to avoid default family law entitlements
• There are children from previous relationships
• You want to avoid disputes over spousal support or property division

Top Benefits:

• Protect pre-owned property and savings
• Set clear expectations for shared finances
• Avoid lengthy and costly disputes if you separate
• Establish rules for debt and asset division
• Decide on support terms in advance

According to Statistics Canada, over 22% of couples in Ontario are now in common-law relationships—yet the majority are unaware of their limited rights without a cohabitation agreement.

Key Legal Clauses in a Cohabitation Agreement

A well-drafted agreement should address the key areas that commonly lead to disputes during a breakup. Here’s what should be covered:

1. Division of Property

• Clarifies what property is individually owned, what will be shared, and how new assets acquired during the relationship will be handled.

2. Spousal Support

• Parties can agree to waive or limit spousal support if the relationship ends, or specify conditions under which support will be paid.

3. Debts and Liabilities

• Outlines who is responsible for individual or joint debts, such as credit cards, car loans, or lines of credit.

4. Shared Home or Rent

• Specifies how rent, mortgage, or utilities will be paid and what happens to the home if the relationship ends.

5. Inheritance and Gifts

• Determines how family gifts or inheritances are treated—whether they remain with the recipient or are shared.

6. Future Marriage Clause

• Many agreements include a clause stating that if the couple later gets married, the cohabitation agreement becomes a marriage contract unless otherwise agreed.

How a Cohabitation Agreement Differs from a Marriage Contract

Though they can contain similar terms, cohabitation agreements and marriage contracts serve different relationship types:

Without a legal agreement, common-law partners in Ontario don’t have automatic rights to share property—even after 10+ years together.

When & How to Get Independent Legal Advice for Your Agreement

For your cohabitation agreement to be enforceable, each partner should receive independent legal advice (ILA). This ensures that both parties fully understand:

• The legal impact of the agreement
• Their rights under Ontario family law
• Any terms they are waiving or modifying

At Aurigo Law, we offer accessible, flat-fee legal advice for cohabitation agreements in Toronto. We walk each client through the terms, make recommendations, and provide certified ILA documentation—a critical factor if the agreement is ever challenged in court.

Real Example: Protecting Family Property in a Common-Law Relationship

Emma and Josh, both in their late 30s, decided to move into Emma’s condo in midtown Toronto. Emma had purchased the property five years earlier and had received financial help from her parents.

They turned to Arshi Chandel at Aurigo Law to draft a cohabitation agreement that:

• Ensured the condo would remain Emma’s sole property
• Defined each partner’s responsibility for household expenses
• Waived future spousal support claims

Two years later, when they decided to separate, both were grateful that the process was straightforward, amicable, and drama-free—thanks to the clarity of their agreement.