With more couples choosing to live together before — or instead of — getting married, cohabitation agreements have become an essential legal tool in Ontario. They help partners clarify financial expectations, protect assets, and ensure fairness if the relationship ends. But while many couples attempt to draft these agreements themselves, even small errors can leave the document unenforceable or cause serious legal issues later.
If you are entering a common-law relationship in Ontario, avoiding these common mistakes can protect your rights and preserve the fairness of your agreement.
Here are the most common mistakes people make when drafting a cohabitation agreement — and how to avoid them.
1. Not Seeking Independent Legal Advice
One of the biggest mistakes partners make is drafting or signing an agreement without receiving independent legal advice (ILA). While it may seem simple enough to prepare a document together, the court may view the agreement as invalid if one or both partners did not receive proper legal counsel.
Independent legal advice helps ensure that:
- Both partners understand the terms
- Neither partner felt pressured to sign
- The agreement is fair and informed
- The court views the document as valid
2. Failing to Fully Disclose Assets and Debts
A cohabitation agreement is only as strong as the information used to create it. One of the most common — and most damaging — mistakes is failing to provide full financial disclosure.
This includes:
- Bank accounts
- Real estate holdings
- Investments
- Business assets
- Pensions
- Debts and liabilities
If one partner hides or forgets to disclose an asset, the entire agreement can be challenged later. Complete transparency is essential to ensure fairness and enforceability.
3. Using Generic or Online Templates
It may be tempting to use a downloadable template to save time and money, but generic agreements rarely reflect the complex realities of an Ontario common-law relationship. Every couple’s financial situation is unique, and courts will not enforce a poorly drafted or vague agreement.
Common issues with templates include:
- Missing mandatory legal language
- Failing to account for Ontario-specific laws
- Overly vague financial terms
- Unclear asset division rules
- Missing clauses relating to future children, support, or property
A customized agreement, drafted with the help of a Brampton family lawyer, ensures that the document fully reflects your intentions and complies with Ontario’s Family Law Act.
4. Not Planning for Children or Major Life Changes
Many couples draft a cohabitation agreement when their relationship feels stable and predictable. However, failing to account for future life changes is a major mistake.
Your agreement should consider:
- Whether you plan to have children
- How finances will change if one partner becomes a caregiver
- Future inheritances
- Potential property purchases
- Significant changes in income
If your agreement doesn’t account for major life changes, it could become outdated or unenforceable later. A lawyer can help create a future-focused agreement that evolves with your relationship.
5. Drafting Unfair or One-Sided Terms
Courts in Ontario take fairness seriously. While cohabitation agreements allow couples to customize their financial rights, agreements that strongly favour one partner may be considered unconscionable and struck down.
Examples of risky clauses include:
- One partner waiving all rights to property
- Agreement terms that significantly disadvantage a financially dependent partner
- Support terms that conflict with Ontario laws
- Clauses designed to pressure or manipulate
An experienced lawyer, such as Badesha Law, ensures your agreement is balanced, reasonable, and legally compliant.
6. Forgetting to Update the Agreement Over Time
A cohabitation agreement is not a “sign once and forget forever” document. As your relationship evolves, your agreement may need updates.
You should revise the agreement if:
- You purchase property together
- You have a child
- One partner gets a major promotion or inheritance
- You start a business
- You get married (the agreement automatically becomes a marriage contract)
Updating your agreement ensures it stays relevant and enforceable.
7. Not Storing the Agreement Properly
Another surprisingly common mistake is failing to store the agreement in a secure and accessible place. Misplacing or damaging the document can create unnecessary tension or prevent the agreement from being enforced when needed.
Keep copies:
- With each partner
- With your lawyers
- In a fireproof safe or secure digital storage
8. Focusing Only on Asset Protection
Many people enter a cohabitation agreement with asset protection in mind — and while that’s important, the agreement should also address other major elements of a long-term partnership.
Consider including terms about:
- Household expenses
- Debt repayment
- Gifts or inheritances
- Estate planning
- Spousal support (if applicable)
- What happens if one partner stops working
A comprehensive agreement reduces confusion and builds a stronger financial foundation for the relationship.
Why Work With a Family Lawyer in Ontario?
Drafting a cohabitation agreement may seem straightforward, but mistakes can lead to costly disputes, unfair outcomes, or unenforceable terms. A qualified family lawyer ensures your agreement is clear, thorough, and legally binding.
Badesha Law, a trusted family law firm in Brampton, helps couples:
- Draft customized cohabitation agreements
- Receive independent legal advice
- Understand property rights and support issues
- Revise or update existing agreements
Their team provides the clarity and confidence couples need when planning their financial future together.
Conclusion
A cohabitation agreement is a valuable tool that protects both partners in a common-law relationship — but only if it’s drafted properly. Avoiding these common mistakes can save you from legal headaches and ensure long-term security. With the guidance of a knowledgeable family lawyer like Badesha Law, you can create a strong, enforceable agreement that supports your relationship and future goals.
