A Filipino Lawyer in Toronto Distinguishes a Marriage Contract from a Cohabitation Agreement
Some couples who have been living together without getting married (common law) think that because they have lived with his or her partner for a considerably long time, they can already have and exercise ethe same rights as married couples do. This is a common misconception.
The law allows unmarried and married couples in Ontario to enter into agreements that explicitly account for what benefits and responsibilities they should have as a result of their relationship. Such arrangements are classified as follows:
- If the parties do not marry, the agreement is called “cohabitation agreement” and
- If the parties do marry, the agreement is called “marriage contract”
Cohabitation and Marriage Agreements
A cohabitation agreement, if the parties marry at any stage in the future, will change into a marriage contract and continue to be a legally binding instrument.
Cohabitation and marriage agreements allow partners to be bound by their own decision as to whether they will have any right to share in the property of the other, any duty to benefit each other or any right to share in the property of the other upon death. These arrangements enable partners to contract out the rights and responsibilities between them that would otherwise be enforced by law.
Cohabitation Agreements and Marriage Contracts
Cohabitation agreements and marriage contracts provide the couples with instructions on how to realize their financial agreements in the future and in case of a breakup. These forms of contracts have many useful features, which includes:
- Protecting family enterprises and real estate from being exchanged in the event of a relationship breakdown;
- Setting out how assets and debts (i.e. joint, held apart, a combination based on the title and asset) will be handled in the future;
- Capturing the value of each party’s net worth (total assets and debts) at the outset of the relationship; and
- Setting out each party’s financial goals throughout the relationship
Cohabitation and Marriage Agreements
A cohabitation agreement, if the parties marry at any stage in the future, will change into a marriage contract and continue to be a legally binding instrument.
Cohabitation and marriage agreements allow partners to be bound by their own decision as to whether they will have any right to share in the property of the other, any duty to benefit each other or any right to share in the property of the other upon death. These arrangements enable partners to contract out the rights and responsibilities between them that would otherwise be enforced by law.
Cohabitation Agreements and Marriage Contracts
Cohabitation agreements and marriage contracts provide the couples with instructions on how to realize their financial agreements in the future and in case of a breakup. These forms of contracts have many useful features, which includes:
- Protecting family enterprises and real estate from being exchanged in the event of a relationship breakdown;
- Setting out how assets and debts (i.e. joint, held apart, a combination based on the title and asset) will be handled in the future;
- Capturing the value of each party’s net worth (total assets and debts) at the outset of the relationship; and
- Setting out each party’s financial goals throughout the relationship
How can a Filipino Lawyer help you with these contracts? We at AJ Law LLP can help you decide on the best options possible for drafting and executing the contract suitable for you. We can amend documents and formulate a mechanism to help secure the contract’s enforceability and decrease the risk of it being set aside in the future.
Get in touch with our Angeles & de Jesus Law LLP or AJ LAW LLP team at 160 Eglinton Avenue East, Suite 406, Toronto, ON or via phone at +1 (416) 409-5991 or email us at info@ajlawpartners.ca for your FREE INITIAL CONSULTATION. You can also visit our website https://www.ajlawpartners.ca/ for more information about the services we offer.
How can a Filipino Lawyer help you with these contracts? We at AJ Law LLP can help you decide on the best options possible for drafting and executing the contract suitable for you. We can amend documents and formulate a mechanism to help secure the contract’s enforceability and decrease the risk of it being set aside in the future.
Get in touch with our Angeles & de Jesus Law LLP or AJ LAW LLP team at 160 Eglinton Avenue East, Suite 406, Toronto, ON or via phone at +1 (416) 409-5991 or email us at info@ajlawpartners.ca for your FREE INITIAL CONSULTATION. You can also visit our website https://www.ajlawpartners.ca/ for more information about the services we offer.