Living together is not always an antecedent to marriage. Yet buying a house with your common-law spouse differs from sharing a rental space with your college love interest. The Family Law and Real Estate teams at Hummingbird Lawyers LLP teamed up to outline how to protect yourself when you are ready to commit to a house – but not your partner.
The teams explained that the first thing you need to do is to learn and understand your rights and responsibilities as a common-law partner; keeping in mind that they will differ depending on the province you live in. Ontario’s common law partners are treated much like roommates. There is no automatic right in place for property division if a relationship turns south, and ownership follows title.
Every rule deserves an exception
You may be the sole owner of the house, but your partner may still have an equitable interest in your house. The bottom line is: equity is fairness. It is the law that addresses situations where traditional remedies fail to help people who deserve justice. A person who wanted or needs help in equity must prove that they deserve it.
What follows a break-up?
What really happens when the relationship comes to an end where one person owns the house, and the other wants part of it? There is one option for the person who doesn’t own the house. They have the option of applying to the court for help using the equitable doctrine of unjust enrichment.
An individual who is seeking help because of an unjust enrichment must show the court three things:
- That somebody else received a valuable benefit;
- That the person making the claim suffered a corresponding deprivation; and
- That there was no juristic reason for the other person to keep the benefit.
“Juristic reason” means that there is a reason based in law. The person who wants part of the house cannot recover against the owner if the owner can show a juristic reason for keeping the benefits received from the other. This can include things such as a gift or contract.
Legalities for the common law couple
Ultimately, living common law is not the same as being legally married. Equitable remedies that protect common law couples when their relationships end, equally apply to people living together as roommates. However, the practical difference is that the closer a common law couple’s financial life intertwines, the closer their reality reflects the unity of traditional marriage.
Couples need to remember that civil litigation lawyer can be is costly and unpredictable. Oftentimes, common law couples will use cohabitation agreements to protect themselves in the event of a break-up. These agreements usually cover topics like the division of property and spousal supports. Furthermore, these agreements can be individualised to reflect the unique needs of each couple. And, they can help manage the couple’s expectations and avoid the cost and uncertainty of going to court.