Domestic contracts are written agreements between spouses or partners that set out their rights and obligations during a relationship or after separation. These agreements can cover matters including but not limited to, property division, spousal support, child support, decision-making responsibility and parenting time.
The three primary types of domestic contracts are:
- Cohabitation agreement
- Marriage contract
- Separation agreement
When properly drafted, these agreements provide clarity, reduce uncertainty, and can significantly limit future litigation.
At Shuter Law, we assist clients in preparing carefully structured domestic contracts that reflect their intentions while meeting Ontario’s legal requirements.
Cohabitation Agreement
Parties can enter into cohabitation agreement, regardless of gender or marital status. It outlines their rights and responsibility during cohabitation, separation or death. If the couple decides to marry, the cohabitation agreement automatically transforms into a marriage contract, unless stated otherwise within the agreement.
Matters that you can include in a cohabitation agreement include property ownership, financial contributions, spousal support, and any specific provisions unique to the couple’s relationship. It may also include other terms related to the partners’ affairs, provided the terms comply with Ontario law.
Marriage Contract
A marriage contract, sometimes called a prenuptial agreement or postnuptial agreement, is a domestic contract under section 52 of Ontario’s Family Law Act. It is entered into by couples who are married or planning to marry. It outlines their rights and responsibilities during the marriage, separation or dissolution of the marriage.
You can set out each party’s financial obligations and how you will manage assets and debts during the relationship and on separation. A marriage contract cannot determine decision making responsibility or parenting time. It can address financial matters similar to a cohabitation agreement, including property and spousal support.
Separation Agreement
Parties that are now living separately may enter into separation agreements to resolve their affairs. These agreements may address all legal matters related to a relationship including property division, spousal support, child support, decision-making responsibility, and parenting time, along with provisions for the children’s education and any other relevant issues.
When Is A Domestic Contract Enforceable In Court?
A domestic contract is enforceable in an Ontario family court only when it meets certain legal requirements. It must fulfill these conditions:
- Contract must be in writing and signed by both parties.
- Both parties should have received independent legal advice before signing to ensure they understand the terms and implications.
- Complete financial disclosure by both parties is necessary; any omission or misrepresentation can invalidate the contract.
- Contract must be fair and reasonable at the time of signing.
- There must be no evidence of coercion, duress, or undue influence during the creation of the contract.
- Contract must not contravene public policy.
- If circumstances change significantly after signing, making the agreement unconscionable, the court may decide not to enforce it.
At Shuter Law, our experienced family lawyers are here to help you draft and finalize your domestic contracts with accuracy and attention to detail. Contact us today to schedule a consultation.