When it comes to property division during divorce or separation, the rights of common law spouses in Ontario differ significantly from their married counterparts. Let’s delve into the intricacies and explore the options available for couples navigating this complex terrain.
Property Division: Married vs. Common Law
In Ontario, common law spouses do not enjoy the same rights as married couples when it comes to the property division. The fundamental principle for unmarried partners is clear: “whoever paid for it, owns it.” Whether it’s a home, pension, or other assets, the ownership is attributed to the individual who financially contributed to its acquisition.
If one partner exclusively paid for a property, they retain full entitlement to it. In cases where both partners contributed, the value may be shared proportionally based on each person’s financial input. However, this rule may vary across provinces, emphasizing the need to be aware of regional nuances.
Contributions and Compensation
For common law partners, the partner who did not financially contribute to an asset may still have a claim if their efforts enhanced its value. This could involve non-monetary contributions such as labor or other forms of support. The compensation, if awarded, can be determined through mutual agreement or, if needed, by a court ruling.
Legal Agreements: Cohabitation and Separation Agreements
While not mandatory, common law couples can choose to enter into a legal contract, commonly known as a “cohabitation agreement” or a “separation agreement,” to define the sharing of property. Consulting with a lawyer is advisable before finalizing such an agreement to ensure it aligns with the couple’s interests and complies with the law.
Provincial Variances
It’s crucial to recognize that property rights for common law relationships vary across provinces. The applicable law is determined by the province where the couple resided during their relationship. Thus, understanding regional distinctions is essential for an accurate interpretation of rights and responsibilities.
Separation Pathways: Guiding Your Property Division Mediation Journey
Navigating the complexities of property division requires professional support. At Separation Pathways, we offer a unique Financial/Property Mediation package for only $1799.00 per couple. This package includes up to 6 hours of mediation, providing a comprehensive solution for couples undergoing separation.
Within this package, couples can benefit from:
A Completed Memorandum of Understanding.
Division of Property, covering houses, pensions, bank accounts, investments, and more.
Spousal Support considerations (if applicable).
As an added incentive, upon completing Step 2, couples receive a $369 credit toward this package. Our unique selling proposition lies in being a non-profit organization dedicated to offering affordable, accessible, and high-quality mediation services. We ensure transparent pricing with flat fees, eliminating surprises.
When you purchase a mediation package, our skilled mediators work with you to facilitate the resolution of outstanding issues in your separation. Trust Separation Pathways to guide you through this challenging process, providing the support you need for a smoother transition.