DOMESTIC RELATIONSHIP AGREEMENTS (aka cohabitation agreements)

What is a Domestic Relationship?

In recent years, the concept of domestic relationship or cohabitation has expanded to include a close personal relationship between two adult persons, whether or not related by family, who are living together, one or each of whom provide the other with domestic support and personal care. It is often seen as an arrangement for couples who don"t want the social, personal and legal commitment that marriage represents. There are numerous other reasons individuals cohabitate, including:

• Reduction of living expenses.
• Choice by older individuals who don"t want to upset family or friends through remarriage.

The Need for Domestic Relationship Agreements

A domestic relationship agreement means an agreement between two persons that is made in contemplation of their entering into a domestic relationship, or while they are in one, and that makes provision with respect to financial matters, whether or not it also makes provision with respect to other matters.

What to Cover in a Cohabitation Agreement?

A cohabitation agreement is a flexible, laissez faire document. These contracts typically cover the following key points:

• Distributing property in case of death or breakup
• Obligating financial support during the relationship or upon its dissolution
• Handling the payment of debts
• Dividing the principal residence upon breakup of the relationship or if one person dies
• The financial resources of the parties or either of them

Is it a Binding Document?

Before such an agreement is binding, a number of requirements must be satisfied, namely:

•  The agreement is in writing;

•  Both parties signed the agreement;

•  The agreement includes a statement that both parties have received a certificate by a solicitor which states that, before entering into the agreement, the solicitor provided legal advice to one party, independently of the other party to the relationship as to the effect of the agreement on the rights of the parties, and the advantages and disadvantages of the agreement. The solicitors" certificates must accompany the agreement; and

•  Each party must receive a copy of the agreement.

It is important to note that a domestic relationship agreement, or cohabitation agreement, is enforceable like any other contract. It is also important to state that if there has been a material change in circumstances and the terms of the agreement mean that a party to the relationship will suffer hardship, then the agreement may not be enforced.