Moving in with your partner? You might want to consider a cohabitation agreement. In Alberta, the law treats property division much the same for long-term unmarried partners as it does for married spouses.

So if you or your partner solely owns the house that you live in, a cohabitation agreement can clarify who walks away with it in the event of a relationship break down, and whether rent or contributions while you live there act as a gift or would entitle them to a share of the home’s value (as it would under Family Act).

But that’s not all. It can also clarify who owns what, how shared costs are handled, and what happens if the relationship ends. Making cohabitation agreements a powerful tool to prevent real problems down the road.

Cohabitation Agreement When One Person Owns the House

In Alberta, once a couple has lived together for three years in a marriage-like relationship or has a child together, they are automatically considered Adult Interdependent Partners under the law (the official name for common law partners). At that point, property division rules apply much like they would for married couples.

Under the Family Law Act, each spouse may have a legal right to share in property gained during the relationship, even if it is only in one person’s name. If one partner owned the home before moving in together, that home itself is generally exempt from division. However, any increase in its value (beneficial interest) during the relationship will be divided unless a cohabitation agreement states otherwise.

That’s why it’s best to have a cohabitation agreement in place before moving in together or soon after, to clearly outline how you will handle your assets. It sets the foundation early and avoids legal surprises later.

Even if you are not a common law spouse, the non-owner partner could still try to make a legal claim under unjust enrichment or constructive trust principles, which could lead to disputes in court. This is the case if they’ve helped with mortgage payments, renovations, or major upkeep. Those contributions can lead to complex legal arguments about whether they’ve earned a share of the home’s value and may result in financial disputes, which are best avoided in the first place.

A well-drafted cohabitation agreement removes that uncertainty. It can also include provisions for joint assets, household expenses, and debt division and spells out exactly how contributions are treated, whether as rent, a gift, or a reimbursable expense. By setting these terms early, both partners gain peace of mind knowing that the legal side of their relationship is as clear and secure as the personal one.

Creating a Legally Enforceable Agreement

Section 38 of Alberta’s Family Property Act sets out the formal legal requirements for a cohabitation or marriage agreement to be enforceable.

The relationship agreement (like a cohabitation agreement or prenuptial agreement) will only be legally binding if each partner:

1. Signs the agreement in writing (it can’t be verbal).
2. Meets privately with their own lawyer, separate from the other partner.
3. Receives independent legal advice before signing.
4. Signs a lawyer’s acknowledgment that confirms: The signee understands the nature and effect of the agreement. They understand that they’re giving up potential rights under the Family Property Act, and they’re signing the agreement voluntarily and freely.

Even if the document is fair and both partners meant well, a judge could refuse to uphold it if these formal requirements weren’t carried out.

Courts also expect both partners to exchange full and accurate information about their assets, debts, income, and liabilities before signing. If one person hides or undervalues property, or if the other signs without understanding the true financial picture, a judge could later decide that the agreement was unfair or signed under false pretences and set it aside.

Rights and Responsibilities in a Cohabitation Agreement

A cohabitation agreement can cover all the key parts of a couple’s financial and living arrangement. It typically includes:

• How property is owned, including whether the home belongs to one partner or is shared, and how any future property will be treated.
• What happens to the increase in the home’s value during the relationship if only one person owns it?
• How shared purchases, furniture, vehicles, or savings will be divided if the relationship ends.
• How household expenses will be handled, including mortgage or rent payments, utilities, insurance, and maintenance.
• How each partner’s individual finances will remain separate or be combined.
• Whether either partner will contribute to or receive financial support during or after the relationship.
• How debts will be managed and who will be responsible for loans, credit cards, or other liabilities.
• What happens if the relationship ends, including who will stay in the home, how buyouts or reimbursements will be handled, and how property will be divided.
• How major contributions, such as renovations, down payments, or sweat equity, will be valued or repaid.
• How future events, like having children, selling the home, or one partner moving out, will affect the agreement.
• How the couple will resolve disagreements or changes, such as through discussion, mediation, or legal review.

In short, the agreement will clearly explain how the common law couple will share responsibilities, handle money and property, and manage separation, so both partners know exactly where they stand, both during the relationship and if it ever ends.

Can My Girlfriend Claim Half My House in Canada?

Not automatically. In Alberta, if you are not married and not adult interdependent partners or in a common law relationship yet, your partner cannot claim half your house simply because you live together. However, they could potentially make a claim under unjust enrichment or constructive trust if they can prove that their financial or labour contributions increased the property’s value without fair compensation.

What Are the Disadvantages of a Cohabitation Agreement When One Person Owns the House?

A cohabitation agreement is designed to protect both partners, but when one person owns the home, it can come with unique challenges. The process takes time, money, and careful planning, and it can feel a little one-sided at times, which is why having a good lawyer on your side makes all the difference. Without thoughtful drafting, the non-owner may feel they have limited protection or input.

Before moving in together or making major financial contributions, speak with our Alberta family lawyers to create a cohabitation agreement tailored to your circumstances. At DLegal Law Office, we are on your side. We can help you draft or advise your family law agreements including cohabitation agreements, prenups, post nups, and separation agreements. Get in touch today!

The content of this article is intended to provide a general guide to the subject matter and should not be considered legal or other professional advice. To get detailed information regarding your specific circumstances, please discuss your situation with a lawyer or other professional. Refer to our Legal Notice  for more details.