It’s never pleasant to think about what would happen if your relationship with your spouse in the event it were to break up. Married couples have a fair idea as to what would happen in their situation. Common-law couples however often have some misconceptions.
The Fifty-Fifty Assumption
A good number of common-law couples believe that if they have lived together for a period of time and then part ways their assets will be split fifty-fifty. Pretty much the same as the married couples. If this is your way of thinking and you are in a common-law relationship you need to think again.
Proof And The Paper Trail
You in this situation need to be able to prove you have contributed to the relationship financially. It is not just assumed that you have. So you better have proper documentation to show you contributed to the rent, or other expenses. You also need to be sure that your name is on the mortgage title if you are part owner.
Loss Of Identity
When it comes to credit cards you want to make sure that your name is on them as joint users. Otherwise, you can go for years relying on your partner’s credit cards but you have built no credit history for yourself.
The Wise and The Not So Wise
There are some who are much more cautious when it comes to their financial situation in common law situations. Whether they have done research or been advised legally is not sure. These are the individuals who keep paper trails. One situation that was written about was regarding an individual who lived with a woman who bought a condo that needed repair. The man contributed by doing all of the repairs. When the relationship did not work out he took her to court and claimed for all the receipts he had kept plus labor. She ended up owing him a tidy sum that she could not afford to pay so she had to sell the condo. Another individual that wasn’t so wise may have just assumed that if they parted ways they would have been automatically entitled to half the condo.
Disclaimer
The information provided here is in no way intended to be legal advice it is purely for information purposes only and based on opinion and interpretations.
Some Advice
What you can take as advice is to get proper legal counsel as to what your rights and obligations are if you are in a common-law situation. It is up to you to know your rights now not later if the unfortunate separation occurs. Neither party should take offense to the other seeing out legal advice. In fact, both parties should do this for their own protection. It can save a lot of heartache down the road and lessen the bad situation of a separation.
Aside from your legal rights,, you both have rights when it comes to your legal obligations. There are tax laws that can affect the common-law couples. If you are not sure about these I would be happy to help you both file your taxes. Just call Sam Seidman at 416 398 1700.
