Relationships (also marriages), including second relationships (also second marriages), are a life decision with severe long-term financial consequences.
For couples in Ontario entering second marriages, a clear understanding of the financial outcomes of separation or death is crucial.
What happens to your child support obligation for children from your first marriage?
Does your new spouse bear your financial responsibilities to your first spouse?
What happens to life insurance that was designated to your first spouse?
Who inherits the pension plan spousal death benefit?
Are children from the first marriage and second marriage treated the same ?
These are some of the pressing questions that MUST be answered.
Cohabitation Agreements are increasingly becoming THE essential tool for second relationships.
Traditionally, Cohabitation Agreements were seen as something reserved for the wealthy, or as a sign of distrust within a relationship. However, times have changed. Modern couples are getting married later in life, and often more than once, with significant assets and property they bring into the union.
With divorce rates at 50%, and separation of common law couples even higher, it’s become prudent for people to protect their financial well-being and their future estate upon death.
Recent studies show that attitudes towards Cohabitation Agreements are shifting, with more people seeing them as practical and responsible financial planning tools.second marriage
Cohabitation Agreements are legal contracts that couples can enter into before cohabitation. These agreements outline how assets and debts will be divided in case of divorce or the death of a spouse. In Ontario, jointly accumulated assets are typically divided equally upon divorce due to the practice of equitable distribution. The laws are different for common law spouses. Business ownership, inheritances, RRSP’s, RIF’s, retirement funds, pensions, life insurance proceeds, etc. all have different rules.
Cohabitation Agreements allow couples to take an active role in deciding how these assets will be divided, offering more control and predictability in their financial future. Cohabitation Agreements can also address issues such as protecting children from previous marriages’ inheritances, providing for spousal support after a divorce or death, and reducing the potential for costly litigation. Cohabitation Agreements protect both spouses’ previous wealth and streamline legal processes in case of divorce or death so that the adult children do not need to manage the consequences and possibly face family conflict.
In today’s world, Cohabitation Agreements are valuable tools for couples entering second marriages in Ontario. These agreements protect individual wealth, family estate plans and children from the first marriage. They provide clarity and predictability in financial matters. While attitudes toward Cohabitation Agreements have evolved, it’s crucial to approach these agreements with transparency and legal guidance to ensure they serve their intended purpose in case of divorce or other life events. Ultimately, Cohabitation Agreements empower couples to take control of their financial futures and protect their assets and interests, making them essential considerations for those entering into second marriages in Ontario.
Editorial Note: Originally published in 2023, this article explains why cohabitation agreements are essential for couples entering second marriages or long-term relationships—especially when children, property, or prior obligations are involved. With financial and emotional stakes high, clarity now avoids conflict later.
Steve Benmor, B.Sc., LL.B., LL.M. (Family Law), C.S., Cert.F.Med., C.Arb., FDRP PC, is the founder and principal lawyer of Benmor Family Law Group, a boutique matrimonial law firm in downtown Toronto. He is a Certified Specialist in Family Law, a Certified Specialist in Parenting Coordination and was admitted as a Fellow to the prestigious International Academy of Family Lawyers. Steve is regularly retained as a Divorce Mediator/Arbitrator and Parenting Coordinator. Steve uses his 30 years of in-depth knowledge of family law, court-room experience and expert problem-solving skills in Divorce Mediation/Arbitration to help spouses reach fair, fast and cooperative divorce settlements without the financial losses, emotional costs and lengthy delays from divorce court.