WESTSIDE FAMILY LAW - Cohabitation Agreements in BC

COHABITATION AND PRENUPTIAL AGREEMENTS IN BRITISH COLUMBIA

IF YOU LIVE WITH A PARTNER IN A "MARRIAGE-LIKE RELATIONSHIP" AND WANT TO PROTECT YOUR GENERATIONAL WEALTH AND ASSETS AND PROTECT YOURSELF FROM YOUR PARTNER'S DEBTS AND AVARICE OF FAMILY MEMBERS (ESTATE CLAIMS) THEN: YOU NEED A COHABITATION OR PRENUPTIAL AGREEMENT

Purpose of Agreement

With respect to spousal support, the parties agree to release all spousal support rights and obligations under the Family Relations Act, and any other applicable legislation, at law or in equity, from their common-law relationship and in the event of that they separate and end the relationship.

With respect to property, the parties agree to:

(a) release all rights and obligations relating to property under the Family Relations Act, and any other applicable legislation or law, or in equity, from their common-law relationship and in the event of a breakdown of their relationship;

(b) to elect and affirm that none of the assets of either of them will be divided between them, except according to ownership.

With respect to DEBTS, the parties agree that each will remain solely responsible for the debts and liabilities in their own name and neither will be liable for the debts of the other party. This protection from liability from the other persons' debts is not a 100% safeguard. You have to be vigilant: lines of credit, credit cards, mortgages, second mortgages and gambling debts that take the form of any of these can be enforced against you if you are a joint owner of the ASSET OR PROPERTY THAT SECURES THE DEBT or if you are A GUARANTOR of the debt. A Guarantor is primarily liable and the creditor will come after you and your income and assets to enforce the other person's debt that you guaranteed.

FEBRUARY 2012 Update:There is an indication in January 2012 from the BC government that - LIKELY IN 2013 - the new Family Law Act will come into effect to replace the 1970's Family Relations Act. This was to have occured in July 2010 at the time that the Supreme Court Rules were replaced with new Rules. The Family Law Act was until recently "under construction" as a political and legal landmark for BC. The Family Law Act will provide arbitration to family law cases via amending the Commercial Arbitration Act. It will set new professional standards and regulate the mediation professionals. The Property rights of common law spouses will be significantly impacted, providing property rights by legislation that do not exist at present. This may reduce the number of lawsuits between separated common law spouses to enforce property law claims now based on trust law and unjust enrichment (equitable) principles. It is of increased importance to have a detailed cohabitation or marriage agreement in place - for persons with assets or likely to inherit, earn or acquire significant assets during the relationship - that specifies the exact intentions of the parties in regard to the division of assets if the relationship ends. Under the new Act, the two-year duration of the relationship continues to be the milestone of property rights accrual but this milestone is replaced with the date of birth of a child provided that the relationship has the hallmarks of being "marriage-like."