Do Common-Law Couples Have to Equalize Net Family Property in Ontario?
No. Equalization of net family property applies to married spouses: on divorce, nullity, or separation with no reasonable prospect of resuming cohabitation, the spouse with the lower net family property is entitled to one-half the difference. The general definition of spouse for property covers only people who are married to each other, or who entered a void or voidable marriage in good faith.
So common-law couples are not legally required to split property acquired while they lived together, and they cannot share in the increase in value of property the other brought into the relationship. Property you each bought generally belongs to the person who bought it. Even for couples who later marry, years of living together before the wedding do not count for equalization, because the value of property a spouse owned on the date of marriage is deducted, other than a matrimonial home.
Unmarried partners still have options. A partner who contributed to property the other owns may have a right to part of it. Support is also separate from property, and a qualifying common-law partner can claim it. Speak with a lawyer about your facts.
Key takeaways
- Equalization of net family property applies to married spouses, not to unmarried partners.
- Common-law partners cannot share in the increase in value of property the other brought into the relationship.
- Years of living together before a wedding do not count for equalization.
- A partner who contributed to property the other owns may have a right to part of it.