Relationships are special and formed from the heart. However, they need just the right amount of legal interference at times to ensure stability and clarity.
Prenuptial and cohabitation agreements are two common practical and effective ways in which couples in British Columbia (BC) have been navigating their relationships. These legal agreements offer financial security and a framework that prevents conflicts if your relationship ends.
These contracts may seem unromantic, but they give couples peace of mind before, during, and after their relationships. If you wish to make such practical decisions, approach an experienced prenup and cohabitation agreement lawyer in BC to guide you and your partner. They will bring in an objective perspective to your relationship and help you prepare a fair agreement.
Until then, let us understand the two agreements and their implications in British Columbia.
A prenuptial agreement, often called a prenup, is a document signed by a couple before marriage. It is also called a “marriage agreement” in BC. The agreement deals with wealth distribution and other important financial matters in the event of the separation or demise of a partner.
A prenuptial agreement covers these key aspects:
A prenuptial agreement in BC is governed under the Family Law Act.
A cohabitation agreement is similar to a prenup, the only difference being that it is prepared by couples who aren’t married. It deals with couples living together outside of marriage, commonly referred to as common-law partners.
In British Columbia, you can be legally recognized as a common-law partner after living together for two years. You also get this recognition if you haven’t completed two years with your partner but have a child together.
You can prepare a cohabitation agreement in BC once you and your partner are legally recognized as a common-law partner as per the law. Your rights and obligations will be the same as those of married couples.
Prenups and cohabitation agreements allow couples to manage the financial aspects of their relationships practically. With a dedicated lawyer, you can lay out the details of how your wealth will be distributed if your relationship ends. This eliminates the scope for confusion and significantly reduces the chances of disputes in the future.
The Family Law Act in BC contains default rules for dividing assets when couples (married or unmarried) separate.
Here is what happens in most cases:
However, separations are rarely simple and agreeable. While the rules mentioned above apply by default, the couple may encounter various complications, such as:
Under such cases, cohabitation or prenuptial agreements let partners customize the rules based on their preferences and circumstances.
Here is what a prenup or cohabitation agreement in BC should have to be legally enforceable:
Full Financial Disclosure
Both partners need to disclose all their assets and liabilities while making the agreement. Hidden assets discovered later can invalidate the agreement.
Independent Legal Advice
It is advisable for both partners to seek separate legal advice. This allows them to express their thoughts freely and receive objective support that works in their interest.
Reasonable Terms
A prenuptial or cohabitation agreement shouldn’t be evidently unfair and exploitative. The court can invalidate it if it finds it “significantly unfair.”
Written And Signed Legal Document
As of now, only a clearly written and signed physical copy counts as a cohabitation or prenuptial agreement. Oral agreements, even if agreed upon by both parties, have no validity.
Updated Document
Most agreements need changes over time. Events like property acquisition, childbirth, financial changes, etc., should be reflected in your cohabitation or prenup agreement.
Let us first see the most important provisions included in a prenup or cohabitation agreement:
The exact provisions are different for different couples. Some couples also add clauses related to dispute resolution that can be handled with mediation instead of court trials.
Let us now see what prenuptial and cohabitation agreements in BC cannot do:
Waiving Child Support
You cannot waive child support through a prenup or cohabitation agreement. The BC courts will always prioritize your child’s interest and ensure that they are provided for according to the laws applicable by default.
Predetermined Parenting Arrangements
While you can divide child support responsibility and lay out a detailed framework with these documents, you cannot predetermine parenting arrangements or custody rights in advance. Such decisions should be legally made depending on your children’s needs and conditions at the time of separation.
If both partners agree to their prenup or cohabitation agreement and work with their respective lawyers, things can continue smoothly. However, BC courts can invalidate an agreement or intervene under the following circumstances:
Prenuptial and cohabitation agreements iron out any confusion you may have before entering a relationship. While we all want our relationships to last forever, life is uncertain, and we may find ourselves parting ways with our loved ones. This is when prenups and cohabitation agreements ensure fair and seamless division of wealth and responsibilities.
Work with a trusted prenup and cohabitation agreement lawyer in BC to prepare a precise agreement, review it, and avoid disputes in the future.
