CRA Common-Law Definition: When Must You Report a Partner in Ontario?

If you live with a partner in Ontario, the CRA may treat you as a couple for tax purposes even if you never married and never used the words "common law." That can affect the benefits and credits you receive.

This article explains the CRA's test, how short separations are handled, and when you need to report a change.

The CRA test: 12 months, with exceptions

Under the Income Tax Act, a common-law partner is a person who cohabits with the taxpayer in a conjugal relationship and has done so throughout the 12-month period ending at that time.

There is an exception for parents. A cohabiting conjugal partner who is a parent of the taxpayer's child is a common-law partner even before 12 months of cohabitation. The CRA's guidance also counts a partner who has custody and control of the taxpayer's child, where the child is wholly dependent on that partner for support.

This is a tax definition. It differs from the Family Law Act support test, which generally uses three years of continuous cohabitation, so being a common-law partner for the CRA does not decide your family law rights.

• Family Law Act support: two unmarried people who have cohabited continuously for at least three years, or who cohabited in a relationship of some permanence and are parents of a child.
• Immigration sponsorship: cohabiting in a conjugal relationship for at least one year.
• ODSP: among other routes, having lived in the same dwelling for at least three months with social and financial ties consistent with cohabitation.
• Ontario Works: a spousal assessment is needed once an applicant has lived with another adult who is not a close relative for three consecutive months without declaring them a spouse, financial, social and familial interdependence must all be present, and sharing finances alone does not make co-residents spouses. Ontario Works rules can change, so it is worth confirming the current test for your situation.

Short separations and the 90-day rule

Once partners cohabit, they are deemed to keep cohabiting unless they have lived separate and apart for at least 90 days because the relationship broke down. The CRA says the 12 continuous months include any separation of less than 90 days.

When a separation does last at least 90 days, the separated status takes effect from the day the partners started living apart. The CRA says to wait at least 90 days before reporting a separation.

• A two-week break after an argument is generally a separation of less than 90 days, so it does not interrupt the 12 months.
• A separation of 90 days or more because the relationship broke down changes your status, effective from the day you began living apart.
• Whether a particular break counts can depend on the facts, so keep a record of dates and addresses.

Reporting a change in status

You must tell the CRA about a new marital status by the end of the month after the change. You can do this through the CRA's digital services or on Form RC65, Marital Status Change.

The CRA will then recalculate your benefits and credits. That is why timing matters, since the amounts you receive depend on the status the CRA has on file. A tax professional or lawyer can explain how your own numbers may change.

Tax status is also separate from property. Ontario does not divide property between common-law couples when they separate, and each partner keeps the property they bought. A partner who contributed to property the other owns may have a right to part of it, and may have to go to court if the owner does not agree to pay the contribution back.

What to do next

If your living situation has changed, take a few practical steps before your next filing or benefit review.

• Write down the date you began cohabiting and any dates you lived apart.
• Gather records that show where you lived and when, such as leases and bills.
• Count whether you have reached 12 months, or whether you share a child.
• If you separated, the separation must last at least 90 days, and your separated status takes effect from the day you began living apart. You must tell the CRA about a new marital status by the end of the month after the change, so confirm the timing for your situation with a tax professional.
• Use the CRA's digital services or Form RC65 to report the change.
• If you are separating or have questions about support and property as well as tax, speak with a lawyer or accountant.

Frequently asked questions