- Under the Family Law Act, married spouses are entitled to equalization of net family property — but the Act excludes certain property from that calculation, including most gifts and…
- Because common-law partners aren’t part of the Family Law Act’s equalization scheme at all, the "excluded property" concept doesn’t operate the same way for them.
- Even without an equalization right, the non-inheriting partner isn’t automatically shut out — but they need a specific legal basis, not just the length or seriousness of the relationship.
When one partner in a long-term relationship receives an inheritance, it’s natural to wonder how that money fits into the couple’s finances — and what happens to it if the relationship ends. For married couples, Ontario law has a fairly clear answer. For common-law partners, the answer is different, and often less protective of the partner who didn’t inherit.
This article explains how an inheritance received during a common-law relationship is treated in Ontario, why the rule protecting married spouses doesn’t carry over, and when the partner who didn’t inherit might still have a claim.
How Inheritances Work for Married Spouses (For Context)
Under the Family Law Act, married spouses are entitled to equalization of net family property — but the Act excludes certain property from that calculation, including most gifts and inheritances received from a third party during the marriage.
Practically, that means if a married spouse inherits money and keeps it reasonably separate, that inheritance is generally excluded from what gets equalized when the marriage later ends. This exclusion exists specifically because the equalization regime — and therefore something to exclude property from — applies to married spouses in the first place.
Why the Same Protection Doesn’t Really Apply to Common-Law Partners
Because common-law partners aren’t part of the Family Law Act’s equalization scheme at all, the "excluded property" concept doesn’t operate the same way for them. There’s no automatic sharing regime for the inheritance to be excluded from.
In practical terms: a common-law partner who receives an inheritance generally keeps it, if the relationship ends — not because of a specific inheritance exclusion, but because common-law partners have no automatic right to equalization of property under the Family Law Act at all, regardless of how long they cohabited.
For the partner who didn’t inherit, this can be an unwelcome surprise, especially if the inherited money grew over time or was used to buy or improve a home the couple shared.
When the Other Partner Might Still Have a Claim
Even without an equalization right, the non-inheriting partner isn’t automatically shut out — but they need a specific legal basis, not just the length or seriousness of the relationship.
Possible routes include:
- Unjust enrichment — for example, if the inheriting partner used the money to buy a home and the other partner contributed unpaid labour, mortgage payments, or increased household responsibilities without being compensated
- A joint family venture claim — where the couple’s finances and life were genuinely pooled toward common goals over a long-term relationship, and the inherited asset became part of that shared venture
- A trust argument tied to specific contributions toward a specific asset, such as putting money or unpaid work directly into a home purchased partly with inherited funds
These claims depend heavily on how the inheritance was used. Money kept strictly separate in the inheriting partner’s own account behaves very differently, legally, from an inheritance mixed into joint finances or poured into a jointly used asset.
What Tends to Matter Most
| Factor | Why it matters |
|---|---|
| Was the inheritance kept separate, or mixed with joint finances? | Mixing weakens the argument that it stayed the inheriting partner’s exclusive property |
| Was it used to buy or improve an asset the couple shared, like the home they lived in? | Ties the inheritance to a specific asset the other partner may have contributed to |
| Did the other partner contribute money, labour, or both toward that asset? | This is the core evidence an unjust enrichment or joint family venture claim is built on |
| Is there a cohabitation agreement addressing inherited property? | A written agreement can settle the question in advance, before a dispute arises |
Practical Steps
If you’re the one who inherits:
- [ ] Consider keeping inherited funds in a separate account, in your name only
- [ ] Be cautious about using inherited money to improve property held solely by your partner, or think through the implications first
- [ ] Discuss and document, ideally in a cohabitation agreement, how you intend the inheritance to be treated
If you’re the partner who didn’t inherit:
- [ ] Keep records of any financial or labour contributions toward an asset connected to the inheritance
- [ ] Raise the question of a cohabitation agreement early, rather than after a dispute arises
- [ ] Get legal advice promptly if the relationship ends and you believe your contributions weren’t recognized
Frequently asked questions
If we’re common-law and I inherit money, is it automatically "mine" if we separate?
Generally, yes, in the sense that there’s no automatic equalization right forcing you to share it. But if the money was mixed into joint finances or used toward a shared asset your partner also contributed to, your former partner may have a separate claim against that specific asset.
Does it matter if we’ve lived together for many years?
Length of the relationship doesn’t create an automatic property right for common-law partners, but a long relationship with pooled finances and shared goals is exactly the kind of fact pattern that can support a joint family venture claim.
Can a cohabitation agreement settle this in advance?
Yes. A written, signed, and witnessed cohabitation agreement can specifically address how an inheritance — received before or during the relationship — will be treated if the couple separates, which avoids uncertainty later.
What if the inheritance was used to buy our home together?
This is exactly the kind of situation where a partner without a claim to the inheritance itself may still have an unjust enrichment or joint family venture claim, depending on their contributions to that specific property. Get advice early.
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