Why Clear Agreements Matter More with Age and Assets
Common-law relationships are on the rise in Canada. While it’s always been common for people to live together before marriage, many are now choosing to skip marriage altogether. This trend includes a growing number of older couples, many of whom are finding love and companionship later in life.
A Second Chapter, With Complications
Older adults entering common-law relationships often bring more complexity with them. These individuals may:
- Be divorced after a long-term marriage
- Be widowed
- Have adult children
- Own property, investments, or other substantial assets
For these couples, the legal and financial implications of living together can be more complicated than they are for younger people just starting out.
Why Families Often Get Involved
In many cases, it’s adult children who raise concerns. They want to ensure that their parent’s property is protected in case the relationship ends, or the new partner passes away.
This is where a cohabitation agreement becomes essential. Couples come to us to create a written agreement that outlines how assets will be handled if the relationship ends or one partner dies. These agreements help protect family wealth and avoid future misunderstandings.
Setting Fair Expectations with Time-Based Clauses
Some cohabitation agreements include graduated asset-sharing, which gives the less wealthy partner access to a percentage of assets over time. This approach is often seen as fair, and courts tend to support it.
- 5 Years Together = 20% Shared of Assets
- 7+ Years Together = 35% Shared of Assets
- 10+ Years Together = 50% Shared of Assets
This kind of gradual arrangement creates transparency and shows both parties are making compromises. It is also far more likely to hold up in court compared to agreements where one person keeps everything and the other receives nothing.
Why Courts Respect These Agreements
Courts tend to support cohabitation agreements that show:
- Both parties made informed choices
- The agreement was negotiated fairly
- There was mutual benefit, not a one-sided arrangement
When a couple clearly outlines expectations and demonstrates fairness, the agreement is more likely to be upheld. It also reduces the risk of lengthy legal battles down the road.
Reassurance for Couples and Their Families
For older couples with established assets, a cohabitation agreement provides:
- Peace of mind about property
- Clear expectations between partners
- Reassurance for children and family members
- Protection in case of death or separation
When both people understand where they stand, it reduces the chance of confusion or conflict later on. Everyone involved can feel more secure about the future.
How We Can Help
We regularly draft cohabitation agreements for clients in later-life relationships. Our lawyers understand the unique dynamics involved and will work with you to:
- Protect your assets
- Preserve your independence
- Create fair and reasonable terms
- Support healthy family dynamics
Whether you are entering a new relationship or want to clarify things in an existing one, we can help you find the right solution.