Family Law
5 minutes reading time

Common Law Partners: Legal Rights and Responsibilities for Unmarried Couples

Written by:
The Tabuchi Law Team
Published on:
The Tabuchi Law Team
March 11, 2024
The Tabuchi Law Team
March 11, 2024

Common Law Partnerships in Ontario

Definition:

In the eyes of the law a common law partnership is formed when a couple cohabitates, in a relationship for two years or more or, for a duration if they share parenthood.

Legal Recognition:

In Ontario common law relationships are acknowledged, granting couples rights and duties akin, to those of partners.

Rights and Responsibilities:

Common law partners have the following rights, among others:

     
  • The right to share property and assets acquired during the relationship
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  • The right to support, both during the relationship and after its breakdown
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  • The right to make decisions about each other's medical treatment and care
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  • The right to apply for a restraining order in cases of domestic violence

Dissolution of Common Law Partnership:

In a common law partnership it is possible for the partnership to end if one of the partners passes away. If they decide to separate without plans of getting together. When separation occurs it is important for the partners to fairly divide their belongings and assets taking into account factors like how they have been together and the contributions each partner has made.

Common Law Partnerships in Ontario

In Ontario a common law relationship involves two individuals living together in a partnership, for least three years. It is crucial to understand that this type of partnership differs from marriage with rights and duties for law partners compared to married couples. These partnerships are acknowledged under the Ontario Family Law Act granting entitlements such, as financial support, property division, child custody and inheritance rights. However these entitlements are not automatic emphasizing the need for partners to safeguard their interests through a cohabitation agreement outlining their rights in case of separation or death. Common law partners should also comprehend their responsibilities like providing support to each other and caring for any shared children. If contemplating a law partnership seeking counsel is essential to grasp the full scope of rights and obligations involved.

Domestic Partnerships

In some places domestic partnerships, also known as unions are recognized by the law as an alternative, to marriage. Although there is no legislation for partnerships in Ontario certain common law principles and legal precedents may apply to partners in such relationships. Depending on the situation and the laws in question domestic partners could be entitled to rights and protections as married couples. These rights may involve inheritance, property division and matters concerning child custody and support. It's worth noting that the legal landscape surrounding partnerships can be intricate and differs across provinces. To gain an understanding of the rights and duties of partners in Ontario seeking advice, from a legal expert is recommended.

Property Division

In Ontario when a common law relationship comes to an end the splitting of assets is determined by the Family Law Act. According to the Act assets acquired during the partnership are typically divided equally regardless of ownership. However there are exceptions, such, as assets obtained before the relationship or inherited by one partner. The court considers factors like relationship duration, financial contributions and childrens needs when dividing property between common law partners. If you're in a common law relationship and worried about property division, after separation it's wise to consult with a lawyer to understand your rights and choices.

Property Division

In Ontario when it comes to dividing property for common law couples there are no laws, in place. Instead the courts have established a common law method for property division that hinges on concepts, like enrichment resulting trusts and constructive trusts.

When a common-law partnership dissolves, the courts will consider the following factors in determining how to divide property:

  • The length of the relationship
  • The financial and non-financial contributions of each partner
  • The value of the property
  • The needs of each partner

In cases, like this the courts will also take into account if theres a living agreement that clearly lays out how property will be divided if a couple separates. Dealing with property division, for partners can get quite complicated and tough. Its recommended to consult with a lawyer to make sure your rights are safeguarded.

Child Custody

When a couple who are not married and have children decide to part ways they need to figure out what's best, for the kids, in terms of custody. In Ontario the law focuses on putting the childs well being. When deciding on custody arrangements various factors come into play.

  • The relationship between the child and each parent
  • The child's age and maturity
  • The child's wishes (if they are old enough to express a preference)
  • The ability of each parent to provide a stable and supportive home
  • The presence of any domestic violence or abuse
  • Any other relevant factors

Courts generally prefer custody arrangements, where both parents collaborate on decision making and parenting duties. Nonetheless in situations sole custody might be granted to one parent if it is believed to be the beneficial, for the child. Seeking advice, from a professional is crucial to grasp your entitlements and choices concerning child custody.

Support Obligations

In relationships recognized under law partners have a duty to support each other. This entails both individuals being accountable, for offering assistance to one another when necessary. The level and duration of this support are determined by factors such, as the duration of the relationship the income and possessions of each partner and the requirements of the partner. In cases of separation or termination of the partnership court may mandate support obligations.

Child Custody

In Ontario unmarried couples do not receive the rights, as married couples when it comes to child custody by default. If unmarried parents split and cannot agree on custody the court will decide based on what's best, for the child.

The factors considered include:

  • The child's wishes
  • The child's relationship with each parent
  • The stability of each parent's home environment
  • The ability of each parent to provide for the child's physical, emotional, and educational needs

Inheritance Rights

Common law partners may be entitled to inheritance rights although the specifics of these rights can vary depending on the region and the legal framework governing the relationship. In areas common law partners might be regarded as spouses when it comes to inheritance matters. In other places they may not automatically inherit anything. It's worth noting that not all jurisdictions recognize law partnerships as marriages, which could impact their entitlement to inheritance rights compared to legally married couples. To safeguard inheritance rights, for law partners its recommended to establish a cohabitation agreement or another legal document that outlines each partners rights and obligations related to inheritance. Seeking guidance, from a lawyer when drafting this agreement is crucial to ensure its legality and enforceability. Additionally common law partners might want to consider creating a will or trust that clearly states their preferences for how their assets should be distributed upon death. This proactive step can help guarantee that their wishes are honored and their assets are divided according to their desires.

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Disclaimer
The information provided on this blog is intended for general knowledge and informational purposes only and does not constitute legal advice. The content on this blog is not a substitute for professional legal advice tailored to your specific circumstances. Laws and regulations are constantly changing, and the information provided on this blog may not be current or accurate. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained in this blog. For specific legal advice regarding your situation, we strongly recommend that you consult with our firm or another qualified legal professional. Do not rely on information found on this blog as a substitute for personalized legal advice.

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Information is power!

The Ultimate Guide to Estate Planning in Ontario
Estate Planning
5 min read

The Ultimate Guide to Estate Planning in Ontario

Why is estate planning important?

Estate planning is the process of managing your assets during your lifetime and after your death. It involves creating a plan to ensure that your assets are distributed according to your wishes and that your loved ones are taken care of after you are gone.

Estate planning is important for everyone, regardless of age, wealth, or marital status. It can help you to:

  • Avoid probate, which is a time-consuming and expensive legal process that distributes your assets after your death.
  • Protect your assets from creditors and lawsuits.
  • Ensure that your assets are distributed to your desired beneficiaries in the way that you want.
  • Minimize estate taxes.
  • Provide for your minor children and other dependents.
  • Make your wishes known for your end-of-life care.

What is probate?

Probate is the legal process of distributing a deceased person's assets. It involves proving the validity of the deceased's will and appointing an executor to carry out the wishes of the deceased.

Probate can be a complex and time-consuming process, and it can also be expensive. The probate fees charged by the courts vary from province to province, but they are typically based on the value of the deceased's estate.

How to avoid probate

There are a number of ways to avoid probate, including:

  • Living trusts: A living trust is a legal document that transfers ownership of your assets to a trustee. The trustee will manage your assets during your lifetime and distribute them to your beneficiaries after your death. Living trusts are a complex estate planning tool, so it is important to speak to an estate planning lawyer to determine if a living trust is right for you.
  • Joint ownership: Joint ownership is a type of ownership where two or more people own the same asset. When one joint owner dies, their interest in the asset automatically passes to the other joint owners. Joint ownership can be a simple and effective way to avoid probate for certain assets, such as bank accounts and real estate. However, it is important to understand the rights and responsibilities of joint ownership before transferring assets to joint ownership.
  • Beneficiary designations: Beneficiary designations allow you to specify who will receive certain assets after your death, such as insurance policies, retirement accounts, and bank accounts. Assets with beneficiary designations are not subject to probate.

Other estate planning tools

In addition to living trusts, joint ownership, and beneficiary designations, there are a number of other estate planning tools that can be used to avoid probate and protect your assets. These tools include:

  • Powers of attorney: A power of attorney is a legal document that gives another person the authority to act on your behalf. You can create a power of attorney for financial matters or for healthcare matters. A power of attorney can be helpful if you become incapacitated and are unable to manage your own affairs.
  • Guardianships: If you have minor children, you will need to appoint a guardian to care for them after your death. You can appoint a guardian in your will.
  • Wills: A will is a legal document that specifies how you want your assets to be distributed after your death. If you die without a will, your assets will be distributed according to the laws of intestacy in your province.

Benefits of estate planning

Estate planning offers a number of benefits, including:

  • Peace of mind: Knowing that your affairs are in order and that your loved ones will be taken care of after you are gone can give you peace of mind.
  • Reduced legal costs and delays: Probate can be a time-consuming and expensive process. Estate planning can help to reduce legal costs and delays by avoiding probate.
  • Asset protection: Estate planning can help to protect your assets from creditors and lawsuits.
  • Tax minimization: Estate planning can help to minimize estate taxes.
  • Family protection: Estate planning can help to ensure that your assets are distributed to your desired beneficiaries in the way that you want.
  • End-of-life care: Estate planning can help to make your wishes known for your end-of-life care.

How to get started with estate planning

The first step in estate planning is to gather your information. This includes making a list of your assets, debts, and beneficiaries. You should also think about your end-of-life care wishes.

Once you have gathered your information, you can start to create your estate plan. It is important to speak to an estate planning lawyer to get help creating an estate plan that meets your individual needs.

Hire an estate planning lawyer

An estate planning lawyer can help you to:

  • Understand your estate planning options
  • Create an estate plan that meets your individual needs
  • Review your estate plan regularly to ensure that it is up-to-date

Gather your information

Before you meet with an estate planning lawyer, it is important to gather your information. This includes making a list of your assets, debts, and beneficiaries. You should also think about your end-of-life care wishes.

Create your estate plan

Once you have gathered your information, you can start to create your estate plan. This may involve creating a will, a living trust, and other estate planning documents. It is important to work with an estate planning lawyer to create an estate plan that meets your individual needs.

Review and update your estate plan regularly

Your estate plan should be reviewed and updated regularly to ensure that it is up-to-date and that it reflects your current wishes. It is especially important to review your estate plan after major life events, such as marriage, divorce, or the birth of a child.

Example of how estate planning can avoid probate

Here is an example of how estate planning can avoid probate:

John and Mary are married and have two children. They own a home, a bank account, and a retirement account. John and Mary want to ensure that their assets pass smoothly to their children after they die.

John and Mary create a living trust and transfer their home and bank account to the trust. They also name their children as the beneficiaries of their retirement account.

John dies, and Mary inherits his interest in the living trust. After Mary dies, the assets in the living trust are distributed to their children.

Because John and Mary's assets were held in a living trust, they avoided probate. This saved their children time and money.

Conclusion

Estate planning is an important part of financial planning. It can help you to protect your assets, ensure that your wishes are carried out after you are gone, and reduce the burden on your loved ones. If you have not already done so, I encourage you to speak to an estate planning lawyer to get started with your estate plan.

Ontario Estate Planning: Understanding Non-Probate Assets
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Ontario Estate Planning: Understanding Non-Probate Assets

When a person dies without a will, their assets are distributed according to Ontario's intestacy rules. However, certain assets, such as jointly owned property and life insurance policies with named beneficiaries, are excluded from intestacy distribution. Understanding these exclusions is important for estate planning.