Cohabitation agreements

A division of assets must take place if one partner passes away or in the event of a separation. Without a cohabitation agreement, the rules of the Cohabitees Act apply, which may lead to unwanted consequences for those unfamiliar with them. When moving in together, few couples consider what will happen if the relationship ends. According to the Cohabitees Act, a home and household goods acquired for joint use are divided equally upon separation – regardless of who paid for them.

With a cohabitation agreement, you can opt out of the default rules of the Cohabitees Act and, if necessary, combine it with a promissory note to agree on a division that reflects each partner’s contribution to the home and household goods. This means you can influence which assets are to be divided – and which are not – thereby reducing the risk of future conflicts.