Common-law relationships are increasingly common in Canada, but while they can look a lot like marriage in day-to-day life, they can be very different under the law, depending on where you live. One of the biggest misconceptions? That common-law couples have the same legal rights as married spouses when it comes to property and assets. In many provinces, they don’t.
That’s why it’s essential to understand how to protect your assets in a common-law relationship before any conflict or separation arises. In this article, we’ll walk you through your rights, responsibilities, and the legal tools available to keep your finances secure.
How Do You Keep Your Assets Safe in a Common-Law Relationship?
Unlike married couples, common-law partners don’t have automatic rights to each other’s property in most provinces. If you want clarity and protection, you’ll need to plan ahead.
Legal Tools and Property Law Basics in Canada
In Canada, family law is provincial. In many provinces, including Ontario and Nova Scotia, common-law couples are not entitled to an equal division of property when they separate. The default rule is that each partner keeps whatever is in their name, unless a partner can establish a right to other property by filing a legal claim (like unjust enrichment or resulting trust), which often requires going to court.
This means that without a written agreement, you might have no claim at all to property that isn’t in your name, even if you contributed significantly to that property, which can include your home, a business, or debts.
On the other hand, in British Columbia, Manitoba, Saskatchewan, and, with some particular rules, Alberta, once your relationship meets the definition of common law, your property division rights are equivalent to those of a married couple. That means that all family property will be split equally between partners unless you have an agreement that says otherwise.
Using Cohabitation Agreements to Secure Your Finances
A cohabitation agreement is a legally binding contract that common-law couples can use to set out their rights and responsibilities, including:
- Who owns what
- How property or debt will be divided if you separate
- Whether spousal support will be paid
Cohabitation agreements offer peace of mind. They reduce the risk of conflict later and give couples the opportunity to define what’s fair for themselves, rather than relying on provincial legislation or having to file legal claims at the end of a relationship if you can’t agree. They’re especially important if you own property, have children from a previous relationship, or one of you is entering the relationship with significantly more assets or debt.
What to Know About Property Division in Common Law
If you separate without an agreement in a province without property division rights for unmarried couples, you may need to make a legal claim to seek a share of your partner’s property. Courts will look at factors like:
- Contributions to the property (financial or otherwise)
- Any promises made or expectations established by conduct
- Whether your partner was unjustly enriched by your efforts or contributions
These claims are complex, expensive, and hard to predict. That’s why lawyers overwhelmingly recommend using a cohabitation agreement instead of leaving things to chance. The cost of making an agreement is a fraction of the cost of filing a claim in court at the end of a relationship.
Financial Considerations in Common-Law Relationships
Finances are one of the most common sources of conflict in relationships, especially during a separation. Planning ahead isn’t just smart; it’s an essential way to take care of each other.
Managing Debt and Financial Responsibility as a Couple
While property doesn’t always get shared automatically in common-law relationships, debt might affect both partners, especially if you’ve co-signed a loan, share a credit card, or are both listed on a mortgage or lease.
Talk about how you’ll handle shared expenses, debt repayment, and future financial goals. A cohabitation agreement can include terms around debt responsibility, so no one gets stuck with more than their fair share after a breakup.
Avoiding Disputes Over Property and Assets
When a relationship ends, emotions run high. Without clear documentation of who owns what, it can become one person’s word against the other’s. Protecting your assets is about preventing those stressful disputes.
Simple steps like keeping receipts, documenting contributions, and formalizing agreements in writing (not just verbal conversations) go a long way. But the most comprehensive protection comes from a customized cohabitation agreement.
Legal Rights in Common-Law Partnerships
Do Unmarried Partners Have Legal Rights?
Yes, but as discussed above, they’re limited in some provinces. Common-law partners may have some rights, depending on how long you’ve lived together and whether you have children. These rights can include:
- Applying for spousal support (after a certain length of cohabitation)
- Making claims in court for a share of property
- Access to shared benefits, pensions, or insurance in certain cases
But these rights don’t include automatic entitlement to property division like married spouses have in all provinces. It’s crucial to understand what you’re entitled to in your province.
An Overview of Legal Protections for Common-Law Couples
Legal protections vary by province, but here are a few general rules:
- Property division: In BC, Manitoba, and Saskatchewan, common law couples have essentially the same rights as married couples. In contrast, there is no automatic right to share property acquired during the relationship in Ontario, Nova Scotia, and others. Some protections exist in Alberta if you meet the requirements under provincial legislation.
- Spousal support: May be available after a certain duration of cohabitation (e.g. 3 years in Ontario) or if you have a child together.
- Pensions and death benefits: You may qualify for some benefits as a surviving common-law spouse.
None of these rights are guaranteed, and most require proving your relationship meets the legal definition of “common law.”
Understanding Common-Law Relationships
What Does It Mean to Be a Common-Law Partner?
You’re considered common law if you’ve lived together in a conjugal relationship for a certain amount of time, which varies by province:
- Ontario: 3 years, or less if you have a child together
- British Columbia: 2 years
- Alberta: 3 years, or less with a child
- Federal law (e.g. taxes, immigration): 1 year
There’s no formal registration. Your status is based on how long you’ve lived together, and whether you’re in a conjugal (or “marriage-like”) relationship. That makes clarity even more important.
Key Differences Between Common Law and Marriage
How Common Law Compares to Marriage in Canada
| Aspect | Marriage | Common Law |
| Property Division | Equal division of marital property | No automatic property division in some provinces |
| Spousal Support | Automatic eligibility | Must meet specific criteria |
| Legal Recognition | Requires license and ceremony | Based on time lived together |
| Separation Process | Legal divorce required | No formal process, but property/debt issues still apply |
Difference Between Married and Common-Law
The biggest difference is this: married spouses have automatic rights under family property laws across Canada. Common-law partners don’t. In provinces without property rights, if you don’t have a cohabitation agreement, one partner could walk away with everything in their name, regardless of what was agreed upon verbally, or what feels fair in the context of your relationship.
Navigating a Common-Law Separation
What to Expect During a Common-Law Separation
There’s no formal divorce process for common-law couples, but separation still comes with major decisions around:
- Living arrangements
- Property and debt division
- Parenting and support
- Financial obligations
The more you’ve combined your lives (bank accounts, property, etc.), the more complicated things can get. That’s why proactive planning is so important. Making decisions about how these things will be managed tends to be much easier at the beginning of your relationship, rather than at the end, when emotions may be running high and trust may be running low.
How to Draft a Fair Separation Agreement
If you didn’t make a cohabitation agreement at the start of your relationship, it’s not too late. A separation agreement can help you divide assets and responsibilities fairly.
A good agreement covers:
- Who keeps what property
- Debt repayment
- Support arrangements
- Future dispute resolution
Currently, Jointly only offers cohabitation agreements. We hope to offer separation agreements soon, but until then, we recommend working with a lawyer in your area to make a separation agreement.
Why Work with Jointly for Asset Protection
Simple and Effective Cohabitation Agreements
At Jointly, we help Canadian couples create clear, fair, and legally enforceable cohabitation agreements without the intimidating legal jargon or high lawyer fees.
You’ll get:
- A free Agreement Starter Kit to teach you about the law in your province so you know what you’re about to agree to
- A user-friendly, step-by-step platform
- Affordable pricing with transparent costs
- Lawyer-reviewed clauses tailored to Canadian law
Whether you’re just moving in together or already living as common-law partners, a cohabitation agreement is one of the smartest ways to protect your future. Jointly makes it simple.
Ready to protect your assets and your peace of mind?
Start building your cohabitation agreement today.
I founded Jointly because I want to empower more Canadians with the knowledge and tools to create relationship agreements that work for them, at a price they can afford. My big dream? That reaching more Canadians with Jointly ultimately keeps more families out of the court system when relationships breakdown, which can be slow, expensive and traumatic. (I may or may not have personal experience with this 😅)
When I'm not lawyering, I'm most likely hiking with my dogs, kayaking the coastal waters around North Vancouver, or hitting the sauna and cold plunge.
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