Previous Headline

February 2009

A broken heart, an empty wallet

You fell in love at first sight and you are still very much in love. First, you got an apartment together, then a cat, a house and eventually, you had your first baby. His salary covers the mortgage and property taxes; yours, the household expenses. Every month, you end up paying the same things, probably because it’s just simpler that way. There is one hitch: you aren’t married, you don’t want to get married, and you never thought of drawing up paperwork between you and your partner. And so far, it has all worked out just fine.

Except…

Except that you wonder what would happen to you if you ever split up with your partner. Picture this: you would end up leaving with a bottle of ketchup, a box of laundry detergent, and the microwave, while your partner would just happen to end up with a fully paid house!.

If that sounds a bit unfair to you, know that there is a way to anticipate the financial consequences of a break-up: the “cohabitation contract”.

What is a “cohabitation contract”?

One third of Quebeckers live in common law relationships i.e. they live together without being married or in a civil union. Unlike married or civil union spouses, the law considers common law partners as if they were total strangers to one another. Common law partners generally do not owe each other anything, unless they’ve agreed to do something in particular. If their relationship ends, they do not benefit from the special form of protection given to married or civil union spouses. That’s why a cohabitation contract can be an interesting option for a couple in a common law relationship. With this contract they can “plan” their life together and decide on how they will protect themselves in case of separation. The contract can be modified as needed to suit changes in the couple’s situation or needs.

Content of a cohabitation contract:

Commitments of the partners during the relationship:

You can put almost anything into a cohabitation contract. Here are some examples:

A list of property acquired by each partner before and during the relationship.
The division of financial and household responsibilities. (You can even make him do his share of the housework, or agree not to eat pasta for dinner more than three times a week!)
Compensation — for example, for a partner who, upon mutual agreement, stays at home with the kids.
A gift given from one partner to the other, unless it is real estate, in which case the gift must be made by deed before a notary.
Any other agreement that is not prohibited by law.

Rights and duties of the partners if the relationship breaks down:

Going through a separation is often very difficult. Nevertheless, if the terms of the separation are written down in a contract, all you have to do is follow them. Amongst other things, your contract can determine:

The allocation of property: who will get the furniture, car, pictures? Who will keep the cat?
How to share the family home: who gets to keep it? Will the other partner receive compensation? If so, in what amount?
Support payments for one of the spouses, and the terms of these payments.

Can you put everything in your contract?

No. For example, inheritance of property has to be dealt with in a will. You cannot decide on your own what an appropriate amount of child support would be if you break-up someday.

Remember that there are other legal documents, particularly the mandate given in anticipation of incapacity, which give additional protection to couples who want it.

For more information, consult our infosheet Cohabitation contracts.