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When your relationship ends, it can be difficult to navigate your legal entitlements especially if a co-habitation agreement was not in place. Although common-law relationships are treated differently than marriages under Ontario law, property division is still a possibility. Although it’s not automatically guaranteed, there are legal steps a common-law partner can take to divide property that accumulated throughout their relationship. Family law lawyer Paul Slan with Gelman & Associates discusses more on the division of property for common-law couples in Ontario.
How Are Assets Divided In A Common-law Relationship?
Unlike married couples, an automatic division of assets does not occur when common-law couples separate. However, common-law couples still have the right to make property claims subject to court decisions. The validity of such claims may depend on a variety of factors, including:
- What assets were acquired during the common-law relationship
- How assets have been acquired
- The contribution each party has made in the acquisition of assets
- The intention of each party when they acquired certain assets
- And more
There are multiple remedies an individual may utilize to claim property or assets after their common-law relationship ends. A resulting trust claim may be made when it can be proven that an asset has been held by one party in trust for another party. Additionally, an unjust enrichment claim may occur when one party feels that the titled owner of an asset should not retain sole possession of it. Frequently, an unjust enrichment claim is made when a non-titled party has made contributions to an asset or relationship but has not received compensation in return.
Understanding what assets you may claim when your common-law relationship ends can be complicated. Our family law lawyers at Gelman & Associates can provide professional legal advice about potential claims and how to pursue them. Contact us today.
Is My Common-law Partner Entitled to My Pension in Ontario if We Are Separating?
Common-law partners are not automatically entitled to pension property upon their separation. However, a common-law partner is allowed to claim any Canada Pension Plan (CPP) credits that accumulated throughout the relationship, so long as the couple cohabitated for at least one year. When pensions are divided, their value is provided in the form of credits until collection begins. It may be difficult for common-law partners to make claims with respect to pensions alone, but pension credits may constitute part of a larger trust claim.
Do Property Division Laws Work Differently If Infidelity is Involved?
Infidelity does not affect property division when a couple separates, whether they are married or common-law. Although infidelity may be the primary reason an individual decides to separate from their common-law partner, it will not impact how property, other relevant assets, or compensations like spousal support are distributed.
Are Division of Assets Always a 50/50 Split?
In common-law relationships, division of assets is not legally required the same way it is for married couples. For this reason, a common-law couple’s property will normally not be split 50/50, even if a partner makes a successful property claim.
The starting point for most common-law property litigation is ownership. When making trust or unjust enrichment claims, a party might decide to dispute the ownership of only a few specific assets. This process is different from divorce, in which couples are entitled to an equalization of all applicable value accrued throughout their marriage. For this reason, a 50/50 division of assets may not be typical for common-law couples.
Because of significant differences from marriage, the ending of a common-law relationship can be complex. If you require advice about dividing assets accumulated during your common-law relationship, schedule a consultation with our family law lawyers at Gelman & Associates today.
How Does Division of Property Work in Cases of Financial Abuse?
Financial abuse can impact property claims made by common-law couples. If a trust or unjust enrichment claim is successful, the judge may take evidence of financial abuse into account when deciding upon a remedy. Although financial abuse cannot form the basis for a property claim alone, it may improve results for a claiming party.
The Benefits of Having a Cohabitation Agreement for Common Law Couples
Upon the commencement of a relationship, common-law couples may choose to draft a cohabitation agreement. Cohabitation agreements allow unmarried couples to create a contract that outlines their rights and obligations during or after their relationship. The creation of a cohabitation agreement may be especially useful if a couple wants to marry in the future, as it will automatically become a marriage contract. A cohabitation agreement can address the sharing or dividing of property upon the end of a relationship, specify the rightful owner of certain assets, or outline expectations for potential spousal support.
By creating an agreement at the outset of a relationship, partners can protect their assets and avoid hostile property claims if they decide to separate in the future. As a result, both parties can prevent additional stress, legal fees, and time spent in court. For help drafting a cohabitation agreement that works for you and your partner, contact our family law lawyers at Gelman & Associates today.
Schedule a Consultation Today For Advice About Property Division With a Common-Law Partner
When your common-law relationship ends, it can be stressful. Understanding what compensations you may be legally entitled to can help ease concerns. Under Ontario Law, property division is not automatically guaranteed for common-law couples, but it is possible to make property claims for relevant assets. Although not necessary, a cohabitation agreement can help to ensure your property is divided reasonably in the case your relationship ends. Our family law lawyers at Gelman & Associates can assist with creating cohabitation agreements or executing property claims upon the dissolution of your common-law relationship. Schedule a consultation with us today.
Disclaimer: For specific legal advice on your family law matter, please consult with a family law lawyer. The content in this article is not intended to act as legal advice and is instead intended to act as a general overview of a legal topic.
