Cohabitation Agreements and Marriage Contract: These are formal domestic agreements between you and your spouse in the event that your relationship or marriage does not work out. They can also set out what will happen during the relationship should problems arise.
A marriage contract, (sometimes referred to as a “pre-nuptial agreement” if it is completed before the wedding), can be made between spouses who are already married or couples who are planning to marry.
A cohabitation agreement can be made between two people who are already living together, or who are planning to live together. A cohabitation agreement may convert to a marriage contract should a common law couple decide to marry.
These agreements usually deal with how property and debts will be managed during the marriage or relationship and how they may be divided upon the relationship or marriage breaking down. Parties are expected to exchange full and frank financial disclosure prior to the signing of the agreement for such agreements to be enforceable. These agreements can also help protect family business assets and real property from being shared in the event of a relationship or marriage breakdown by fully excluding them from division and equalization. Domestic agreements sometimes also outline terms about spousal support and whether it will be paid or not.
Although these types of domestic contracts run contrary to most people’s idea of a “romantic relationship” as they necessitate contemplating the end of a relationship, entering these agreements is a wise and practical move that defines and protects the rights of both parties should the relationship or marriage end.