Separation Agreements Between Unmarried Couples in Ontario

Separation Agreementsin Ontario are the topic of this article. Many unmarried couples who live together never even consider, let alone prepare and sign, any written agreement that details their rights and obligations. These types of agreements are commonly known as Cohabitation Agreements.

When unmarried couples move in together, they each have their own separate expectations regarding their finances and their obligations to each other. One partner may expect that they will each retain their own separate property, and neither of them will be obligated to support the other partner. The other partner may think exactly the opposite. If they break up, these conflicting expectations can lead to tremendous distress and unhappiness in the lives of both partners.

To use one example, if one partner is much wealthier than the other partner, and the relationship breaks up, they may be served with a lawsuit by the other partner for what is known as palimony, claiming that the other partner promised that they would support him or her for life or claiming that all property acquired during the relationship would belong to both partners equally.

If there is no Cohabitation Agreement governing their rights and obligations, the wealthier partner could be obligated to divide their property with the other partner as well as having to pay support, even if a desire to avoid these obligations was the very reason they did not marry their partner in the first place.

As another example, one partner may have quit their job to make a home for their partner, who in return promised that they would always be taken care of, only to find when they break up that all of the assets acquired together are in the other partner's name, and the other partner is denying that he or she ever made any promises to their partner.

In the State of California and certain other States, courts enforce most agreements between unmarried cohabitants regarding their property. These agreements can be implied, oral, and written. Written agreements signed by both parties, while not always perfect, are far superior to oral and implied agreements in terms of providing the parties with some measure of certainty. Having a written document helps insure that both partners and not a future jury determine exactly what the terms of the agreement are. They also provide each partner with an opportunity to communicate and clarify their expectations of each other.

To avoid misunderstandings, both partners should discuss their expectations regarding financial matters before they move in together as they may find out that the two of them have very different understandings as to what their understanding really is.

Once both partners have talked through the issues and reached a mutual understanding, they should put that agreement in writing. Even a written agreement drafted by both partners themselves may be better than nothing.