What is a Common Law Relationship and how do Cohabitation Agreements apply to them?

It is a hard topic to discuss with your current partner, but it is a topic that has the ability to protect both parties in the event that the relationship breaks down. It is important to know and understand what a common law relationship is and how a cohabitation agreement can protect you.

Living common law means that you are living in a conjugal (refers to the nature of the relationship between the couple) relationship with one person who is not your married spouse, and at least one of the following applies:

• The person has been living with you in a conjugal relationship for at least 12 continuous months.
  • 12 continuous months includes any period you were separated for less than 90 days because of a breakdown in the relationship.
• The person is the parent of your child by birth or adoption.
• The person has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on them for support.

A cohabitation agreement is a legally binding document between two parties in a common law relationship. The agreement will outline what each person will receive and what they must do in the event that the relationship comes to an end. A cohabitation agreement is similar to a prenuptial agreement (often referred to as a “prenup”), except that a prenuptial agreement is for couples entering into a marriage, whereas a cohabitation agreement is between unmarried, common-law couples.

A cohabitation agreement aims to protect one’s assets in the event of a separation. It can describe what will happen to the couple’s finances if they separate or who will get what from the family home. A cohabitation agreement is not set in stone. It can be amended or cancelled as your life progresses and changes however both parties would have to agree to any amendments or to its cancellation.

It is advised that those seeking to make a cohabitation agreement obtain legal advice before doing so.