What is a common-law relationship?
A couple is legally in a common-law relationship if:
- They have cohabited for a minimum of three years.
- They are in a relationship of a permanent nature, such as having biological or adopted children together and have been living together for at least a year.
How does property division happen in married and common-law couples?
For married couples, the division of property is based on the principles of equalization of net marital property upon divorce. Since marriage is legally an equal partnership, the financial wealth gained during the marriage is to be divided equally between spouses. In a common-law relationship, the partners are entitled only to that property which they brought into the relationship or the wealth they acquired individually during the period. There is no statutory right to the equalization of marital wealth.
Property disputes in a common-law separation:
Without equalization rights, common-law partners might have to resort to legal remedies if they think the property is being divided unfairly. For example, when one partner has contributed more financially to the relationship, this allows one spouse to enrich their wealth at the expense of the other. This will lead to disputes in court at the time of separation.
Protecting your wealth in a common-law relationship
With such uncertainty around property division, common-law partners must take steps to protect their financial interests. Here are some options to consider.
Cohabitation Agreement:
A Cohabitation Agreement is a domestic contract outlining the division of property and spousal support obligations in the event of a separation.
Maintain financial records:
Follow the practice of maintaining separate records of the finances of each partner during the relationship.
Follow Legal Advice:
Experienced family lawyers Mississauga can help you protect your legal rights, draft the cohabitation agreement, and deal with the common-law separation proceedings.
If you're seeking guidance on common-law separation or other family law matters, our team of experienced family lawyers Mississauga can assist you. Contact our legal team today to schedule a consultation and ensure that your rights and interests are protected.