Unwritten Agreements Between Couples: A Legal Risk

In the early days of a relationship, many couples make verbal promises—about shared finances, who owns what, or what will happen if things don’t work out. These informal understandings often feel personal and trustworthy, but without anything written down, they can create serious legal complications down the road.

At Chahal Law, we’ve seen firsthand how the absence of written agreements can turn an amicable separation into a drawn-out, emotionally draining legal dispute. Whether you’re moving in together, buying a home, or combining finances, taking a proactive legal approach today can save you from complex consequences tomorrow.

Verbal Agreements: What’s the Risk?

In Alberta, the law doesn’t automatically recognize casual agreements made between partners unless they’re properly documented. A common situation is when one partner contributes to the down payment on a home, while the other’s name is on the title. Years later, if the couple separates, the partner not on the title may have no legal ownership unless they can prove a trust claim—an uphill legal battle that’s time-consuming and expensive.

Another example is shared bank accounts or one partner paying off the other’s debt. Without a written agreement outlining expectations or reimbursement, courts may not see it as anything more than a gift.

Cohabitation Agreements: Protection Without the Marriage Certificate

For couples who live together but aren’t married (legally referred to as Adult Interdependent Partners in Alberta), property rights don’t automatically fall under the Matrimonial Property Act. Instead, they’re covered by the Family Property Act.

A cohabitation agreement allows you to outline how property, debts, and assets should be handled during the relationship and after a breakup. It’s a practical, respectful way to create clarity and fairness, even when everything is going well.

But We Trust Each Other — Do We Really Need a Lawyer?

Yes. Legal agreements aren’t about distrust; they’re about making informed, thoughtful choices. Relationships change, and memories fade. A document signed with legal advice ensures both parties understand the agreement, which makes it more likely to hold up in court if needed.

A well-crafted agreement is often what prevents a friendly separation from turning into a courtroom dispute.

What Should Be in a Domestic Agreement?

Every couple is different, but some common elements to consider include:

• Property ownership: Who owns what, and how will it be divided?

• Debt obligations: What happens to shared or individual debt?

• Spousal support: Will either party pay support if the relationship ends?

• Gifts and contributions: How will large purchases or financial contributions be treated?

Take the Conversation Seriously—Then Put It in Writing

There’s nothing romantic about legal paperwork, but there’s nothing more stressful than an unexpected legal battle with someone you once loved. A domestic agreement gives both partners peace of mind, especially when there are significant assets, income differences, or children involved.

If you’re entering a serious relationship or already cohabiting, now is the time to consider your legal options. At Chahal Law, we help Alberta couples protect their futures with custom domestic agreements tailored to their unique situations.

Call (780) 461-0989 today to book a consultation and take the first step toward clarity and protection.