Common-law Relationships and Property Rights in Ontario

Photo Art by Andrea Linker

"Strathroy in Snow"

Did you hear the story on the news last week of a couple in Quebec who are splitting up? They were unmarried and at issue was support. The Quebec court said that unmarried partners are not entitled to support.

Although that was about support issues, it did get me thinking about common-law relationships and Real Estate in Ontario.

Many people believe that after 6 months of living together a couple becomes "common-law" married and thus the house owned by only one of the couple becomes "matrimonial property" and any increase in value from start to finish of the relationship is shared 50/50. Except for mitigating circumstances, this is untrue.

I have selected an excerpt from an information booklet published by the Ministry of the Attorney General. It was last revised in November 2012.

     "...Common law couples do not have the same rights as married couples to share the property they bought when they were living together. Usually, furniture, household belongings and other property belong to the person who bought them."

     "Common law couples also do not have the right to divide between them the increase in value of the property they brought with them to the relationship."

    " If you have contributed to property your spouse owns, you may have a right to part of it. Unless your spouse agrees to pay you back through negotiation, mediation, collaborative law or arbitration, you may have to go to court to get back your contribution."

To read more about the Family Law Act, go to http://www.attorneygeneral.jus.gov.on.ca/english/family/familyla.pdf

Keep in mind that the booklet does not contain legal advice or replace the specialized advice of lawyers or other experts.

Common law relationships are not "just like being married". I know of a man who re-mortgaged his home to payout a former live-in girlfriend half the value of his house. Perhaps he felt it was the right thing to do. Most likely he didn't get legal advice and felt he was avoiding a costly lawsuit.

Understand your rights and obligations when making major life decisions and don't be afraid to get legal advice.


What's Happening this Week at KW Lifestyles?

Thinking about investing in Real Estate? 
... Come to our Real Estate Investor Seminar Tuesday, Jan. 29, 2013 at 7:00pm in our training room at my office!

Open to everyone - Call or text me at 519-671-2773 so that I can save you a seat and answer any questions. 

COMING SOON!

Listen up my Real Estate Investors!

My BFF - Susan Jameson, CMA  
will be my Guest Blogger.

Her topic will be of interest to individuals and small businesses who are interested in business and tax advice.

Susan is my "go to" person when I need advice.

I can't wait!  See her blog: 

 http://seajameson.blogspot.ca/2013/01/blog-name-change.html

December 2012 London MLS Listing Stats

232 - Listings

147 - Sales

$259,836 - Average Sale Price