Domestic Contracts in Ontario
In Ontario, there are five types of domestic contracts that are permitted as outlined in Part IV of the Family Law Act (FLA). These include cohabitation agreements, marriage contracts, separation agreements, paternity agreements, and family arbitration agreements.
Cohabitation Agreements
Cohabitation agreements are typically entered into by unmarried couples either before they start cohabiting or while they are cohabiting. These agreements can transition into marriage contracts if the parties eventually marry. The agreements address all financial aspects of the relationship, including rights and obligations upon its termination. However, they do not cover custody or access issues.
Marriage Contracts
Marriage contracts can be established prior to marriage or after the marriage but before a marriage breakdown. These contracts can deal with issues such as the ownership or division of property, support obligations, and the right to direct the education and moral training of children.
Separation Agreements
Separation agreements are the most common type of domestic contract. Almost every separated couple that has something to settle as a result of the separation and does not proceed to a court judgment will likely end up with a separation agreement. These agreements address all rights and obligations emerging from the relationship and its breakdown.
Paternity Agreements
Paternity agreements are typically necessary when the biological parents of a child, who are not married, end their relationship. These agreements set out the decision-making authority of each parent concerning the child’s needs. Decisions include custody and access and child support, such as monthly child support, child-care costs, extra-curricular activities, and post-secondary education.
Family Arbitration Agreements
Family arbitration is defined as an arbitration dealing with matters that could be addressed in a marriage contract, separation agreement, cohabitation agreement, or paternity agreement. Before any arbitration proceeding can start, both parties must give their consent by signing an arbitration agreement. This agreement states that the parties waive the right to litigate the matter in court. It also outlines the conditions surrounding the arbitration, including who will arbitrate, where and when the arbitration will occur, and what issues will be arbitrated.
Domestic contracts play a crucial role in managing and settling matters in a relationship, and it's important to understand each type and its implications.
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