Marriage vs. Common-Law in Canada: Key Financial Differences That May Surprise You
You might be in a common-law relationship and not even know it. In Canada, living with your partner for a certain amount of time can give rise to legal and financial responsibilities—even without a formal marriage ceremony.
Although both marriages and common-law unions are legally recognized for tax and benefit purposes, there are notable differences in how finances, property, and entitlements are handled. Understanding these distinctions can influence your decision to marry or remain in a common-law relationship.
If you’re cohabiting, considering marriage, or just curious, here’s a breakdown of the major financial implications between common-law and married couples.
The Legal Line: What Sets Marriage Apart from Common-Law?
Marriage in Canada requires a formal process—registering for a marriage licence and having a legal officiant certify the union. Whether you throw a big wedding or elope quietly, legal steps must be followed to make the marriage official.
In contrast, common-law relationships don’t need a ceremony. Federally, if two people live together in a conjugal relationship for 12 consecutive months, they’re considered common-law. Some provinces may have slightly different requirements, such as longer cohabitation or shared financial obligations.
If a couple splits for fewer than 90 days during that 12-month period, the relationship remains intact legally. But separations longer than that can reset or challenge common-law status.
Taxes: Treated the Same—With a Few Twists
For tax purposes, the CRA treats married and common-law couples alike once they meet the cohabitation threshold. This means access to benefits like income splitting, spousal tax credits, the Canada Workers Benefit (CWB), and GST/HST credits.
However, even if you’re not legally married, you’re still required to file your taxes as a couple. You’ll need to report your partner’s information, such as:
- Social Insurance Number and legal name
- Net income for the tax year
- Any Universal Child Care Benefit received or repaid
- Self-employment income, if applicable
- Be aware that provincial programs and credits may treat common-law and married couples differently, so eligibility can vary depending on where you live.
Property Rights: A Big Difference
Perhaps the most striking distinction between common-law and married relationships is how property and assets are divided if the relationship ends—or if one partner passes away.
In a marriage, spouses usually have an automatic legal right to share marital property equally. But common-law partners generally don’t have the same legal protections unless local laws say otherwise or specific agreements are in place.
These differences are especially important during separation or after a partner’s death. For instance, a married spouse often inherits automatically if the other passes away without a will. A common-law partner, however, may have no entitlement unless specifically named in the will—making estate planning essential for non-married couples.
Spousal and Child Support: What You Need to Know
Support obligations apply to both married and common-law couples, but the legal framework differs.
Married spouses are automatically entitled to spousal support when separating, whereas common-law partners may need to prove dependency or financial hardship to make a claim.
Child support is more straightforward: Regardless of the parents’ marital status, the parent with less parenting time is usually responsible for contributing financially. Still, proving a common-law relationship may require extra documentation if disputes arise.
Pensions and Retirement Plans
On the federal level, common-law partners generally enjoy the same Canada Pension Plan (CPP) benefits as married spouses—including survivor benefits.
However, proving entitlement as a common-law partner may require evidence such as shared addresses, financial interdependence, or legal agreements. Married couples don’t face this hurdle since their relationship is formally documented.
With employer-sponsored pensions, plan rules vary, and some may offer survivor benefits only to legally married spouses. It’s essential to review your pension plan or speak to your HR department to understand what’s covered.
Final Thoughts: Weighing Your Options
Marriage brings clear legal rights, easier access to benefits, and a defined process for separation—but it also comes with more complexity if the relationship ends.
Common-law relationships offer flexibility, but they lack some built-in legal protections. If you and your partner live together for at least 12 months, you’re likely considered common-law for most federal programs—even without a wedding ring.
To safeguard your financial interests, common-law partners should consider a cohabitation agreement and proper estate planning. These steps can ensure both individuals are protected, no matter what the future holds.
About the Author
Barbara Landau has held numerous leadership roles in family mediation and dispute resolution across Ontario. She co-authored The Family Dispute Resolution Handbook and From Conflict to Creativity, and continues to advocate for peaceful, informed approaches to family law. Her experience spans mediation, legal education, and interfaith dialogue in conflict zones.