Last week, the issues resulting from the breakup of two common-law relationships found themselves in front of the Supreme Court of Canada after not being able to decide how to divide their assets.
In the first case, the pair split after a 26-year common law relationship. Initially, the common-law wife transferred her home and car to her common-law husband, who then paid them off. The common-law wife suffered a stroke well into their relationship and ended up in an extended care facility while the common-law husband ended up with far more in assets than she had by the time they broke up. She brought action against him claiming spousal support and a division of property on the basis of unjust enrichment – where one spouse gains a valuable advantage over the other. Originally, the Court of Appeal determined that she was not eligible for spousal support.
“The Court of Appeal has lost sight of the fact that he’s better off than she is,” her lawyer argued at the trial.
The second case is an Ontario case where a common-law couple broke up after the common-law husband made millions of dollars when his company was bought out. A trial judge awarded the common law wife a settlement of $1.2 million, as she had stayed home and raised the children so he could spend more time focusing on his business. The court of appeal denied her the award and they are now at the Supreme Court to determine the real value of her sacrifices over the years they were together.
The decisions of both cases are reserved, which means it could take months for the court to actually hand out a ruling.
Common law relationships share the same problems as any other relationship and just because a marriage is not involved doesn’t mean that a breakup is any less messy. A prenuptial agreement and a qualified family lawyer can help make the process much easier.
Common law couples don’t have the same rights as married couples to share the property they bought when they lived together. What you brought into the relationship — for example, furniture, household items and other items – belong to you.
Common law couples do not have the right to divide between them the increase in value of the property they brought with them to the relationship. If you did contribute to your spouse’s property you may have a right to it and, unless he or she agrees to pay you back, you can go to court and prove your contributions.
You can ask for spousal support if you have been living together for three years or if you have lived together for less time and have a child together. If your spouse says “no” then you can go to court.
Child support also applies if you and your spouse have a child or children together.
Common law couples can sign a cohabitation agreement to protect their rights.