1. They live in a province without legislation governing the division of ownership of common law partners. Ontario is such a province. In Ontario, there is no law regulating the division of ownership. Instead, the basic rule is that each party retains what is in its name. But the longer the relationship, the greater the differences in assets between the spouses and the more marital the relationship, the more likely a court is to intervene and find that a party has been unjustifiably enriched and order a transfer of ownership. It can be very difficult, even for a lawyer, to predict whether an unjustified right to enrichment will be successful. To avoid being in this grey area of the law, you and your partner can enter into a cohabitation contract. Then you can be sure of how the assets are divided when your relationship ends.
The most common reason for a couple to enter into a life pact is to protect their separate assets and incomes, so that the property of anyone entering into a relationship is preserved as much as possible when the relationship is broken. Sometimes one person wants to preserve the property of the other person`s rights; Sometimes one person wants to protect the property from the other person`s debts. In general, most couples who think about a cohabitation contract want a ”I`ll keep what`s mine, you keep what belongs to you” some kind of agreement, and that`s fine. 4. Succession planning. Many people do not realize that in Ontario, from a real estate law perspective, you and your partner are legal aliens. So if your common law partner dies without a will, you won`t inherit anything, no matter how long you`ve lived together. Similarly, your common law partner can get you out of your way. To avoid this situation, it is mainly older couples who will take care of the planning of the estate in their housing contract.
You can manage the minimum requirements that a will must contain or allow your partner to continue living in your home once you have died, among other things. Counsel argue that the cost of a ”no nup” is nothing compared to the cost of settling things in court if you leave without an agreement. ”The fight in court can cost tens of thousands of pounds,” says Blacklaws. ”She has no influence on the legal nature of her relationship. Cohabitation agreements generally concern the ownership of a property. @Josh — I would say that half of my clients are specifically interested in protecting their homes.