How to Get a Cohabitation Agreement in Ontario – Step-by-Step Process

Why You Might Need a Cohabitation Agreement in Ontario

Living together as a couple in Ontario without getting married is increasingly common, but it brings unique legal and financial considerations. A cohabitation agreement is a legally binding contract that helps couples protect their interests and avoid future disputes.

One of the main reasons for creating such an agreement is protecting property, assets, and financial security. Unlike married spouses, common-law partners in Ontario do not automatically gain equal rights to property acquired during the relationship. For example, if one partner owns the home you both live in, the other does not automatically gain ownership rights simply by living there. A cohabitation agreement can outline exactly how property will be treated if the relationship ends, ensuring fairness and clarity.

The Family Law Act of Ontario sets out different rules for married spouses and common-law partners. Married couples have statutory rights to equalization of net family property and special treatment of the matrimonial home, while common-law partners must rely on contract law or claims like unjust enrichment to make property-related arguments. By signing a cohabitation agreement, common-law couples can create certainty and avoid lengthy legal battles if they separate.

Step 1 – Start the Conversation Early

The first step in creating a cohabitation agreement in Ontario is having an honest and open conversation with your partner. Ideally, you should bring up the idea well before moving in together or making any major financial commitments. This ensures that both partners have enough time to consider the implications without feeling pressured.

Open communication is key. Talking about finances, property ownership, and expectations for the future may feel uncomfortable at first, but it helps to prevent misunderstandings and reduce conflict later on. When couples clearly express their concerns and goals early in the relationship, it creates a stronger foundation for trust and cooperation.

It is also important that agreements are never rushed. Waiting until the last minute—such as days before moving in together—can create unnecessary stress and lead one partner to feel pressured into signing. Ontario courts are more likely to uphold a cohabitation agreement if both parties entered into it voluntarily, with sufficient time to review and obtain independent legal advice.

Step 2 – Hire an Ontario Family Lawyer

Once you and your partner agree to move forward with a cohabitation agreement, the next step is to hire an Ontario family lawyer. Under Ontario law, each partner must obtain independent legal advice (ILA) for the agreement to be considered valid and enforceable. This means you and your partner cannot share the same lawyer, as each of you needs your own legal advocate to review and protect your interests.

The lawyer’s role is to explain your rights and obligations under the Family Law Act and how the agreement may affect you in the future. For example, a lawyer will clarify how property division, spousal support, and ownership of the home will work if the relationship ends.

A family lawyer also helps ensure that the agreement is drafted properly and legally enforceable. If one partner later tries to challenge the agreement in court, judges will carefully examine whether it was prepared fairly and in compliance with Ontario law. Having independent lawyers for each partner demonstrates that the agreement was entered into voluntarily, without undue pressure, and that both individuals were fully informed.

Step 3 – Exchange Full Financial Disclosure

A critical step in creating a cohabitation agreement in Ontario is the exchange of full financial disclosure. Both partners must provide a complete and accurate picture of their financial situation, including assets, debts, income, and liabilities. This typically means listing bank accounts, investments, real estate, pensions, credit card balances, loans, and any other relevant financial information.

The reason this step is so important is that incomplete or misleading disclosure can make the agreement invalid. Ontario courts take the position that you cannot fairly negotiate an agreement if one partner is unaware of the other’s true financial circumstances. For example, if someone hides significant assets or debts at the time of signing, a judge could set aside the agreement later on, especially if it causes unfair results.

To make this process smoother, it’s wise to use practical tips for gathering documents and statements:

• Collect recent bank and investment account statements.
• Obtain credit reports to verify outstanding debts.
• Gather property deeds, mortgage details, and pension or RRSP statements.
• Keep everything organized in a clear, written financial disclosure statement for your lawyer to review.

Step 4 – Draft and Negotiate the Agreement

With financial disclosure completed, the next step is to draft and negotiate the cohabitation agreement. In Ontario, this is typically done with the assistance of your family lawyers, who will prepare a first draft based on the information you’ve provided and your stated preferences. The draft acts as a starting point for discussions and ensures that important legal considerations under the Family Law Act are covered.

During this stage, couples negotiate key terms such as property division, spousal support, and estate planning. For property, the agreement can set out whether jointly acquired assets will be divided equally or in proportion to each partner’s contribution. It may also clarify how the home you live in will be treated if only one partner holds title. For spousal support, the agreement can either waive or establish future obligations, provided it complies with Ontario’s support laws. Estate planning terms may also be included, ensuring that partners are protected if one of them passes away without a will.

The negotiation process is not just about legal formality—it is about ensuring fairness so the agreement will stand up in court. Ontario judges have the discretion to set aside agreements they find unconscionable or entered into under pressure. By working through terms carefully, making compromises where necessary, and ensuring both partners have independent legal advice, you create a contract that is not only practical but also far more likely to be enforced if challenged in the future.

Step 5 – Review, Sign, and Finalize

After negotiations are complete, the cohabitation agreement must be reviewed carefully, signed, and properly executed. In Ontario, the agreement must be in writing and signed by both partners in the presence of at least one witness. The witness must also sign the document to confirm that both parties entered into it voluntarily. Without these formalities, the agreement could be challenged or declared unenforceable in court.

To further strengthen the validity of the contract, lawyers typically provide Certificates of Independent Legal Advice. These certificates confirm that each partner met with their own lawyer, received professional advice, and signed the agreement knowingly and without pressure. Courts in Ontario often give greater weight to agreements backed by these certificates, making them an essential safeguard.

Timing also matters. The best timeline is to complete the process several weeks before moving in together or making a significant financial commitment. If the agreement is signed at the last minute, it could be argued that one partner did not have enough time to reflect or felt pressured to agree. Completing the review and signing process early ensures the agreement reflects both partners’ genuine intentions and helps protect its enforceability.

How Long Does the Process Take in Ontario?

The time required to complete a cohabitation agreement in Ontario can vary depending on the couple’s circumstances. For simple agreements, where finances are straightforward and both partners are in agreement on the major terms, the process usually takes about 4–6 weeks. This allows enough time for financial disclosure, drafting, legal review, and signing.

How Much Does a Cohabitation Agreement Cost in Ontario?

The cost of a cohabitation agreement in Ontario depends on the complexity of the couple’s circumstances and the level of negotiation required. On average, legal fees typically range from $1,500 to $3,000 or more per partner. This includes financial disclosure, drafting, negotiation, and independent legal advice. Each partner must retain their own lawyer, which means fees are billed separately.

Using a family mediator to create your cohabitation agreement in Ontario is often a cost-effective alternative to traditional lawyer-to-lawyer negotiations. Mediators provide a neutral setting where both partners can work through financial and personal terms together, reducing conflict and avoiding lengthy back-and-forth communication between separate law firms.

Why Professional Guidance Matters

While it may be tempting to use online templates to draft a cohabitation agreement, doing so without proper legal advice comes with significant risks. Many generic templates fail to comply with Ontario’s Family Law Act or overlook critical clauses, leaving couples vulnerable to disputes. An agreement that is poorly drafted, missing key terms, or not properly executed may be declared unenforceable in court, defeating its entire purpose.