The laws for unmarried couples changed significantly in 2025 regarding pets and pensions. Simply living together now carries heavy legal weight under the Family Law Act in British Columbia. To avoid these new government rules, couples need a properly drafted cohabitation agreement. Strategic planning helps partners navigate these complex changes to ensure their safety. Don’t let old advice cost a fortune in the future.
What is a “Common-Law” Spouse in BC
In BC, you are legally considered “common-law spouses” if:
- You have lived together in a marriage-like relationship for at least two years continuously; OR
- You have a child together (by birth or adoption).
The 2-Year Rule: When Does the Clock Start?
Becoming a common-law partner happens automatically. You don’t sign up for it. The clock simply starts ticking the moment you move in together.
- The 2-Year Mark: You must live together in a “marriage-like” relationship for two years in a row.
- The Child Exception: If you have a child together, you are considered spouses the moment you live together. The two-year wait does not apply.
Why You Need a Cohabitation Agreement
Once you reach that two-year milestone, the law treats your finances differently. An agreement allows you to “opt out” of the default rules.
1. Property Division
The law says spouses are entitled to 50% of all “family property” gained during the relationship.
- Expert Tip on “Tracing”: Property owned before the relationship is usually “excluded” and safe. However, any increase in its value is shared 50/50.
2. Debt Responsibility
Without an agreement, you could be responsible for half of the debts your partner takes on while you are together. An agreement ensures that “his debt” or “her debt” stays that way.
3. Spousal Support
You may have to pay your partner money to live on after a breakup. In the recent case of Schrader v. Schrader, 2025 BCCA 50, the court reminded us that while you can waive support in an agreement, the court can still step in if that waiver is “significantly unfair.”
4. Estate Rights
Under the Wills, Estates and Succession Act (WESA), a common-law spouse has a right to your inheritance if you die without a will. An agreement clarifies your true intentions.
New Rules for 2024 and 2025: Pets and Pensions
The laws in BC are changing. Here is what is new:
Companion Animals (Pets)
Effective Jan 15, 2024
Pets are no longer treated merely as property, such as a toaster. Courts must now consider the “best interest of the animal.” They look at who cared for the pet and any history of cruelty.
Pension Updates
Effective Jan 1, 2025
New rules under the Division of Pensions Regulation make things more transparent. If you are a “limited member” of a partner’s pension, the plan administrator must now send you annual notifications about when you can start receiving benefits.
How to Create a Binding Agreement: The Checklist
If an agreement is one-sided or “sneaky,” a judge will throw it out. Follow this Law Society-standard checklist for success:
- Full Financial Disclosure
You must provide a “full and frank” list of everything you own and everything you owe. Hiding a bank account is the fastest way to make your agreement worthless. - Independent Legal Advice (ILA)
This is non-negotiable. You and your partner cannot use the same lawyer. You each need your own “coach” to ensure you aren’t being pushed into a bad deal. - Voluntary Signing
You cannot sign the agreement under pressure or “undue influence.” Legal experts never recommend signing an agreement; it looks like coercion. - Fairness
The agreement must not be “significantly unfair.” A senior practitioner ensures the deal is balanced enough to stand up in court years later.
Conclusion
Taking the time to draft a cohabitation agreement isn’t about planning for a breakup, it’s about being a relationship strategist. It is an insurance policy for your heart and your wallet. By setting clear expectations now, you can focus on your life together with total peace of mind.
To protect your future, contact Alexandra Booth. Our team specializes in the complexities of BC property and family law.
Frequently Asked Questions (FAQs)
Do we need to register our common-law status in BC?
No. There is no registry. The status is a legal reality that “happens” to you once you meet the criteria of the Family Law Act.
What happens to the property I bought before we moved in?
It is “excluded,” but the increase in value is shared. If your house goes from $1 million to $1.2 million, your partner could claim $100,000. A cohabitation agreement can stop this.
Can we decide on future child support in our agreement?
Generally, no. The law (FLA s. 148) says you cannot “contract out” of a child’s right to support before a split happens. The court will always do what is in the “best interests of the child.”
