I Am in a Common Law Relationship: What Are My Property Rights?

Property Rights and Common Law Marriage in Ontario

Common-law standing for couples in Ontario stipulates that the couple must have been living together in a “conjugal relationship” for no less than three years. But that timeline changes to just one year if the couple serves a parental role or is birth parents of a child.

There is a long list of common law property rights guaranteed to Canadian citizens in regard to property division issues, and in Ontario, those rights and responsibilities might differ greatly than those for residents of other Canadian provinces.

Common Law Property Division in Ontario

Family law and estate law rights and obligations are largely determined by the common law status of a particular partner or couple, and there are very specific rights and obligations for common law property rights in particular. The details of those rights run to concepts such as constructive trusts, matrimonial homes, child support and child custody and estate division, and the rights depend to a large extent as to what constitutes “cohabitation.”

As regard the sharing of a house in Ontario, the “matrimonial home” is granted special status for married couples under the Family Law Act but common law couples receive no such special treatment. It doesn’t exist at all. In practice, it could mean that whoever is listed on title receives the home in the event of a partner’s death or the dissolution of the partnership.

If a couple can’t come to an agreement in a property dispute? It’s entirely possible that a judge might force the sale of the shared property.

A common law relationship in Ontario can mean in practice that you have no property rights regarding your partner’s estate. Should your common law partner die without a written will, the remaining partner could be treated as a stranger in purely legal terms.

The Supreme Court of Canada established that unjust enrichment will be the vehicle to the address asset division matters of common law spouses.

How to Protect Your Assets in a Common Law Relationship?

It’s important to consider the ownership of all assets in a common law relationship, but there are ways to make that happen.

1. Keep Records of Your Assets

One is to maintain careful record keeping to demonstrate who purchased what items – that goes a long way in court toward determining ownership of assets in the event of a partner’s death or if the relationship breaks apart.

2. Create a “Domestic Contract”

You can also protect your assets by entering a “domestic contract” to hash out details of your union. In the U. S., this sort of contract is often called a “prenuptial agreement,” and you don’t need to be married at all to create one. Common-law partners create domestic contracts to set clearly defined parameters as to responsibility and ownership of assets. This sort of document ensures that both you – and your partner – can set expectations for how property will be handled during and after a relationship.

Contracts like these can specify whether either partner will be responsible for spousal support or iron out details of how the relationship will be viewed in terms of the Ontario Family Law Act.

3. Consider how your partner is contributing to your asset

If you don’t want to be on the hook to share the value of an asset or assets with your partner in the form of a business or the home share, you must avoid taking advantage of any contributions your partner might make. It is natural in a relationship to pool resources, and to help one another. If your partner makes extensive contributions financially or with their labour to an asset you wish to control, your partner is very likely to have a claim for “unjust enrichment” if you decide not to share assets with them.

An “unjust enrichment” occurs when one partner can demonstrate that the couple was working together in a joint venture. If labour and resources were shared, and the couple worked together to support the family unit, the partner could go on to make a valid claim to the assets in question.

The courts, as a remedy to a situation where unjust enrichment occurs, will award one partner a share of the wealth accumulated by the other. That could come in the form of a “constructive trust,” an award for actual property interest in the property at issue.

Book a Free Consultation with Common Law Expert Family Lawyers in Toronto

There are a whole host of more subtle and complex considerations when it comes to property rights in common law relationships, and when you need help in dealing with the legal nuances related to assets, call or contact us. We’re the legal experts at Fine & Associates, and we are uniquely positioned to serve you and help benefit you, your career and your finances.

Schedule a a free consultation to analyze your common law situation.