Ryan posted about the new Adult Interdependent Relationships publication and we received this question via twitter:
How does one go about signing an AIR agreement? Lawyer?
First of all, how cool is it that we received a question via twitter?? Pretty cool! Second of all, I failed horribly when I tried to answer with 140 characters or less (the annoying lawyer in me took over and wouldn’t stop typing), so we decided to put a post up.
Before you sign an adult interdependent partnership (“AIP”) agreement or other contract, you’ve got to think about why you want to sign that document in the first place.
- Do you just want to make sure that you and your partner are “official” AIPs?
- Do you want to be an AIP of someone you’re related to by blood?
- Do you want to set out what will happen to the house that you bought with your partner in the event that you break up? Do you want to decide what will happen to the cabin that you bought together? What about cars? What about debt that you might collect during the course of the relationship?
If you answered 1 or 2, then the simple answer is you can go to the Adult Interdependent Partner Agreement Regulation. This regulation sets out the exact form that an AIP agreement must take. Use the exact wording that is used in the reg, sign in front of witnesses (witnesses are not required by law, but it’s a really good idea to have them), and you’re good to go. Congratulations, you’re now an AIP. Now go read the Adult Interdependent Relationships booklet to find out what responsibilities and rights you just acquired.
The big “BUT” that you’ve got to realize is that the AIP agreement that you just signed does nothing but make you an AIP. It is NOT a pre-nup or co-habitation agreement. It does not give you any property rights if your relationship ends.
If you answered 3 (or read the paragraphs above and had an epiphany), and you want to protect yourself in the event of a breakup, then you need a different kind of agreement. This type of agreement is often called a co-habitation agreement. There are a few common reasons for entering into a co-hab agreement.
- Property
For married people, there is a presumption that assets and property will be split 50/50 upon marriage breakdown. For AIPs, there is no presumption of equal division. This means that if Bill owned a house and is the only person on title, and Sharon moved in with him and they lived together for 25 years and then ended the relationship, Sharon would not be automatically entitled to receive any interest in the house. By entering into a co-hab agreement, you and your partner can set out what will happen to the house, cars, cabin, investments, etc. if the relationship ends.
- Income
What if one partner earns triple what the other partner does? What if one partner does not work during the relationship? A co-hab agreement can set out what each party expects to happen regarding partner support if the relationship ends.
What should you do if you want a co-hab agreement? You may want to talk to a lawyer. The lawyer can explain to you what is often included in the co-hab agreement, why those terms are included, and draft it for you. While there is no requirement in Alberta for independent legal advice when entering into this kind of agreement, it is a really, really good idea for both partners to have met with separate lawyers to sign the agreement. If you do end up in court, it is more likely that an agreement will be upheld if both parties met with their own lawyers.
If you are concerned about the cost of the co-hab agreement, you can call around to different firms and ask if they have a standard quote. Also, keep in mind that in the long term, having an enforceable co-hab agreement could mean that you save a substantial amount of money.
Before you sign any document with your partner, you should have a frank and candid conversation about what you both expect to happen if the relationship ends. Not all relationships end, and not all people are unreasonable, but it’s best to be prepared. It’s the same as keeping a spare tire in the trunk: you really hope that your car will be able to get you where you want to go, but you’re ready if a tire blows.