Moving in together is a meaningful step. It can also affect how property and debt are treated if the relationship later ends. For couples in Surrey, Guildford, and across British Columbia, a cohabitation agreement is a way to make some financial expectations clear in writing while the relationship is ongoing.
These agreements are sometimes called marriage agreements, domestic contracts, or living-together agreements. The right approach depends on the couple’s circumstances, the terms proposed, and whether each person has had a fair opportunity to understand the agreement. This overview explains common topics to discuss and practical steps to take before signing.
What is a cohabitation agreement?
A cohabitation agreement is a written contract between people who are living together, or planning to do so, that records how they want certain financial matters handled. In British Columbia, spouses can make agreements about property and debt division, and agreements may also address spousal support. A couple may make an agreement before moving in together or during the relationship.
The agreement can set out how the couple intends to deal with assets brought into the relationship, savings accumulated while together, a home, business interests, debts, and expenses. It may also describe what should happen if the relationship ends. It is not a substitute for a will, a parenting arrangement, or a mortgage lender’s approval. Each document serves a different purpose.
When might an agreement be useful?
Couples consider an agreement for different reasons. One person may own a home before the relationship, either person may have significant savings or debt, or a business or family inheritance may need particular attention. Some couples simply want to discuss financial expectations openly before combining households.
An agreement can also be useful when one person plans to contribute to renovations, mortgage payments, or another person’s property. The document should clearly distinguish what the parties intend those payments to mean. For example, are payments contributions to household costs, a loan, or intended to create an ownership interest? Clarity at the outset can reduce misunderstandings later.
There is no single agreement that fits every couple. A Surrey couple with a jointly purchased home may need different terms from a couple where one person owns a business or has children from an earlier relationship. The key is to identify the issues that actually matter to both people.
How BC family law may apply to unmarried couples
Under British Columbia’s Family Law Act, unmarried people who have lived together in a marriage-like relationship for at least two years are generally treated as spouses for property and debt division purposes. There are separate rules for spousal support, and other family-law issues can have their own requirements. Whether a relationship meets the legal test depends on the facts, not just the label a couple uses for itself.
For spouses covered by the Act, the starting point for family property and family debt is generally equal division, subject to the legislation and any valid agreement. The Act also recognizes excluded property, such as certain assets owned before the relationship or received by gift or inheritance, but growth in value and tracing can raise questions. The details matter, and simply keeping an asset in one person’s name does not automatically answer every division question.
A written agreement can set out a different arrangement, but it should be prepared carefully. The law allows a court to set aside or replace some terms in defined circumstances, including where significant non-disclosure, improper advantage, or an agreement that is significantly unfair is established. A document signed without full information or under serious pressure may be vulnerable to challenge.
Topics couples often address
Property brought into the relationship
List major assets each person owns when the agreement is made, such as real estate, investments, vehicles, or business interests. Consider whether those assets will remain separate, how their value will be recorded, and how any increase in value will be treated. Keep supporting records, including statements, appraisals, and title information.
The family home
If one person owns the home, consider who will pay mortgage instalments, property taxes, utilities, and renovations. State whether those payments create any repayment right or ownership claim, and how the parties will handle occupancy or a sale if they separate. If the couple buys a home together, the agreement should be consistent with the title registration, mortgage documents, and any co-ownership agreement.
Income, savings, and household expenses
Couples may agree how to pay shared expenses, whether to maintain joint or separate accounts, and how savings accumulated during the relationship will be treated. A practical agreement should be specific enough to be understood later, rather than relying on broad phrases such as “we will divide things fairly.”
Debt and business interests
Identify existing debts and decide how new borrowing for shared purposes will be handled. Consider whether one person will be responsible for debt in their own name, and how joint credit or guarantees will be addressed. If a business is involved, identify the ownership interest and consider how business growth, income, and any contributions by the other partner should be treated.
Spousal support
An agreement may address whether support could be payable, the amount or duration, or circumstances that may lead to a review. These terms should be considered in light of the couple’s current circumstances and possible changes, such as a career interruption or caregiving responsibilities. Courts can review support provisions in certain circumstances, so careful drafting and full disclosure are important.
Steps to take before signing
1. Start early. Begin discussions well before a move, wedding, property purchase, or other major deadline. Time to consider the terms helps avoid pressure and rushed decisions.
2. Gather complete financial information. Each person should disclose relevant assets, debts, income, and business interests. Attach schedules or reference clear supporting records where appropriate. A contract is much harder to assess when either person is working with incomplete information.
3. Be specific about the future. Consider what happens if one person pays for renovations, takes time away from work, or contributes to the other person’s business. Include a process for reviewing the agreement after major changes, while recognizing that a review clause does not automatically change the terms.
4. Get independent legal review. Each person should have the opportunity to speak with their own lawyer before signing. Independent review helps each person understand the legal and practical effect of the proposed terms. The lawyers do not need to negotiate aggressively; the purpose is informed, voluntary decision-making.
5. Sign and store it properly. Make sure the final document reflects what both people agreed to, that each signature is properly witnessed, and that both parties keep a complete signed copy with the financial schedules and related records.
Common mistakes to avoid
Waiting until a relationship is already ending can make negotiation more difficult. Other avoidable problems include leaving assets or debts out of disclosure, using vague language, copying a template without adapting it, or treating informal messages as a complete record of the arrangement. A contract should not promise a result that conflicts with lender documents, property title, or the law.
Another frequent issue is failing to update related documents. If an agreement concerns a home, review title and mortgage arrangements with the relevant professionals. If it concerns an estate plan, consider whether wills, beneficiary designations, and powers of attorney should also be reviewed. A cohabitation agreement does not automatically make those changes.
Getting help with a Surrey cohabitation agreement
Couples in Surrey and the Lower Mainland can benefit from discussing the agreement before a major financial commitment. Bring a list of assets and debts, relevant property or business documents, and questions about the arrangement you want. If you already have a draft, each person should have enough time to review it independently before signing.
The goal is not to predict every future disagreement. It is to record a clear, informed arrangement that reflects the couple’s circumstances and can be understood if circumstances change. The most useful terms are usually the ones that directly address the couple’s actual finances and plans.
This article is for general informational purposes only and does not constitute legal advice. Reading this article or submitting a booking request does not create a lawyer-client relationship with Law Boutique. For guidance specific to your circumstances, arrange a consultation.
Ready to discuss a cohabitation agreement in Surrey, BC? Book a consultation with Law Boutique.