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Cohabitation Agreements in BC

Set your own terms, before the law sets them for you.

What is a cohabitation agreement?

A cohabitation agreement, also called a common-law agreement, is a written legal contract between two people who live together, or plan to, in a marriage-like relationship. It sets out how property, finances, and responsibilities are handled during the relationship, and what happens if the relationship ends.

Think of it as the owner's manual for your shared life. You and your partner write it together, before the rules get written for you.

Why it matters in BC

Here is the part that surprises most people. Under the BC Family Law Act, you do not need to be married for the law to treat you like you are.

After two years of living together, you are legally classified as common-law spouses. At that point, the same property division, asset-sharing, and spousal support rules that apply to married couples apply to you, whether you planned for it or not.

There is one important exception when it comes to support. If you and your partner have a child together, spousal and child support obligations can apply after just one year of living together, even if the two-year property threshold has not been reached.

In short: share a child and support obligations may apply after one year. Property division kicks in for everyone after two years, with or without children.

A cohabitation agreement changes that. It lets the two of you decide what is shared, what is not, and how things will be handled, rather than leaving those decisions to a judge.

What can a cohabitation agreement cover?

  • Division of real estate, savings, and personal property

  • Debts incurred before or during the relationship
  • Ownership of gifts, inheritances, and family heirlooms
  • Responsibility for major purchases and shared expenses
  • What happens to pets
  • Spousal support, if applicable
  • The legal process to follow if you separate


You and your partner choose the terms. That flexibility is the point.

Who benefits most from having one?

A cohabitation agreement is valuable for almost any couple moving in together. It is especially important when one or both partners bring real estate, a business, investments, significant savings, or children from a previous relationship into the picture. The more you each have to protect, the more important it is to put the terms in writing before the law creates its own version of your agreement by default.

The real cost of skipping it: Client Story

Cameron and Lisa each owned successful businesses. Cameron also owned real estate worth considerably more than Lisa's assets. Knowing the relationship was rocky, Cameron wanted a cohabitation agreement in place.

Instead of working with a cohabitation agreement lawyer, Cameron downloaded a template online. When he presented it to Lisa, he told her to sign it or leave. Lisa signed without getting independent legal advice. Cameron believed he had saved himself some money.

Years later, they had two children and eventually separated. The value of Cameron's real estate had increased dramatically. Lisa challenged the agreement in court, arguing she had been pressured into signing, that she did not understand it, and that having children together had fundamentally changed their financial situation.

After a lengthy and expensive trial, the judge upheld the agreement. Text and email evidence showed that Lisa had negotiated the terms, and prior sworn statements confirmed she had understood it. Cameron won, but the legal fight cost him far more than a properly drafted agreement would have.

The lesson is simple. If you are going to have a cohabitation agreement, do it properly. The cost of getting it right is a fraction of the cost of defending it in court.

Ready to get yours properly drafted?

A Pathway Legal consultation gives you a clear picture of what your agreement needs to cover and how to do it right. Backed by our money-back guarantee on the initial consultation fee.

pathwaylegal.ca/request-consultation.html | 778-557-5099

What makes a cohabitation agreement legally enforceable in BC?

BC family law sets out clear conditions. If any of them are missing, a court may set the agreement aside.

In writing

Signed by both parties

Full financial disclosure

Both partners share complete financial information

Independent legal advice

Each party should have their own lawyer

Genuine understanding

Each party must actually understand what they are signing

Voluntary

No pressure or coercion

ndependent legal advice protects both of you. It makes the agreement far harder to challenge later, and it ensures you each know exactly what you are agreeing to.

The role of a cohabitation agreement lawyer

Online templates look convenient. In practice, they often miss the specific legal requirements that make an agreement enforceable under BC's Family Law Act, and those gaps can cost you everything a template was supposed to protect.

A cohabitation agreement lawyer drafts the agreement around your actual circumstances, ensures full financial disclosure is properly documented, confirms each party has genuinely consented, and makes sure the document meets all formal execution requirements.

The goal is an agreement that holds up, not just one that exists.

One more thing: review it when life changes

A cohabitation agreement reflects your circumstances at the time it is signed. If those circumstances change significantly, such as having children together, acquiring major new assets, or starting a business, it is worth revisiting the agreement to make sure it still reflects what is fair and what you intended.

The best time to create a cohabitation agreement is before you move in together. The second best time is now.

What if your partner pushes back?

It is worth paying attention to that reaction. A cohabitation agreement is not a sign of distrust. It is a sign of maturity. It means you value the relationship enough to protect both people in it.

A partner who refuses to acknowledge each other's financial reality, despite being financially independent, is signaling something important. Verbal assurances like "I would never go after your assets" are genuine in the moment. They are not legally binding.

Clarity now prevents conflict later. That is true whether your relationship lasts a lifetime or comes to an unexpected end.


Ask Journey – Cohabitation Agreement FAQ
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Ask Journey

Cohabitation Agreement

Real questions. Straight answers. No legal jargon required.

After two years of living together in a marriage-like relationship, yes. Under the BC Family Law Act, you are legally classified as common-law spouses, and the same property division and spousal support rules that apply to married couples apply to you. This catches a lot of people off guard because it happens automatically, without any ceremony, registration, or agreement. You do not choose to become subject to these rules. You simply live together long enough and they apply.

No. The best time to get one in place is before you hit the legal thresholds, not after. Once the two-year mark passes, the default rules already apply, and any agreement you make at that point is working to change an existing legal reality rather than setting terms before one kicks in. If you have a child together, the one-year support threshold means the window is even shorter. Sooner is always better. The conversation is easier when there is less at stake emotionally, and the agreement is harder to challenge when it is made before the relationship becomes a legal partnership by default.

You have significant flexibility, but not unlimited freedom. You can set terms for property division, debts, spousal support, and the process for resolving disputes. What you cannot do is use a cohabitation agreement to opt out of child support obligations or to make binding decisions about future children's parenting arrangements. Those are governed by separate legal principles centred on the child's best interests, and no agreement between adults can override them. A lawyer can walk you through exactly what is in and out of scope for your specific situation.

You each need your own lawyer. That is not a formality. It is one of the conditions that makes the agreement harder to challenge later. A lawyer cannot properly advise two people whose interests may conflict. When Cameron told Lisa to sign or leave, Lisa had no independent advice about whether those terms were fair or what she was giving up. A court can set aside an agreement where one party lacked independent legal advice, particularly when there is a significant power or financial imbalance. Getting separate legal advice is not expensive friction. It is what makes the agreement stick.

The cost depends on the complexity of your financial situation and how much negotiation is involved. A straightforward agreement between two people with relatively simple finances costs less than one involving a business, significant real estate, or existing children. The range is broad, but in almost every case the cost of having it done properly is a fraction of the cost of a legal dispute if the agreement is challenged or fails. The Cameron and Lisa story above illustrates that clearly. A consultation with one of our lawyers will give you a realistic picture of what is involved for your specific circumstances.

Frame it as protection for both of you, not one of you. A cohabitation agreement does not assume the relationship will fail. It assumes that two financially independent adults deserve to understand what the rules are before they share a life together. Ask your partner: if the situation were reversed and you had the more significant assets, would you want clarity? Most people answer yes. The discomfort with the conversation is almost always about the feeling of what it implies, not about the substance of what it actually does. If your partner remains firmly opposed after a calm, honest conversation, that is useful information about how financial decisions are likely to be made throughout the relationship.

This article is for general informational purposes only and does not constitute legal advice. Family law is fact-specific and the law changes. Reading this does not create a lawyer-client relationship with Pathway Legal. For advice about your situation, consult a qualified BC family law lawyer.