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Division of Assets in Common-Law Relationships in Ontario: What You Need to Know

June 12, 2025
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In Ontario, the end of a relationship brings legal and financial questions—not only for married couples, but also for those who have been living together in a common-law relationship. Many people are surprised to learn that common-law partners are not entitled to an equal division of property the way married spouses are under Ontario’s Family Law Act.

What Does “Common-Law” Mean in Ontario?

You’re considered to be in a common-law relationship if:
  • You’ve lived together in a conjugal relationship for at least three years, or
  • You’ve been in a relationship of some permanence and share a child (by birth or adoption).
Unlike married spouses, common-law partners do not automatically share in each other’s property upon separation.

Property Rights: No Automatic Equalization

One of the most significant distinctions between marriage and common-law unions is how property is treated at the end of the relationship.
  • Married spouses are entitled to an equalization of net family property.
  • Common-law partners keep what they own. There is no statutory right to divide or equalize assets unless both names are on title or ownership can be proven.
Example: A woman in Mississauga lived with her partner for 12 years in a home solely in his name. She contributed to renovations, paid bills, and helped raise their children. When the relationship ended, she had no automatic right to a share of the home’s value—but through a constructive trust claim, she was able to establish her financial contribution and obtain a partial interest in the property.

When Can a Common-Law Partner Make a Claim?

Common-law partners may still make a claim to property or compensation in special cases, using legal principles such as:
  • Constructive trust: significant contributions (financial or labour) to property owned by the other partner.
  • Resulting trust: showing that funds or assets were provided with the intention of shared ownership.
  • Unjust enrichment: one partner benefits at the other's expense without justification.
These are complex legal claims that require clear evidence and often involve court proceedings.

How to Protect Your Interests

  • Cohabitation Agreement: A legally binding document outlining property and financial arrangements.
  • Keep detailed records: receipts, transfers, bank statements, renovation or maintenance costs.
  • Seek legal advice: Get clarity on your rights before or after separation.

How We Can Help

At Ahmad Law, we understand that common-law relationships often involve deep emotional and financial investment. Whether you're separating or looking to protect your interests proactively, our experienced family law team is here to help you navigate these challenges with clarity, compassion, and strength.

If you’re unsure about your rights—or feel you’ve contributed more than you’re walking away with—let’s talk. We’ll help you determine whether a trust claim is right for you and guide you toward a fair resolution.

📞 647-483-8820 ---> Book a consultation today to get the legal clarity you deserve.