How Property Division Works for Common-Law Couples in Ontario

Many people assume that if you live with your partner long enough, you automatically get the same rights as married couples when it comes to dividing property after a breakup. But that’s not the case in Ontario.

If you’re in a common-law relationship, property division works very differently than it does for married couples. What you own is what you keep—unless you can prove otherwise. Let’s break it down so you know exactly where you stand.

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Are Common-Law Couples Entitled to Equal Property Division?

No. Unlike married couples, common-law partners don’t have an automatic right to split property when the relationship ends.

In Ontario, the Family Law Act requires married couples to divide their property equally when they separate. This means that all assets gained during the marriage (except for some exceptions) must be shared.

But common-law couples don’t get this benefit. Instead, each partner keeps what they own, and only assets that are jointly owned are divided.

Example:

• If your name is on the house, it’s yours—even if your partner lived there with you for years.
• If your partner bought a car in their name, it belongs to them, even if you helped make the payments.

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So What Happens to Property When Common-Law Couples Split?

Since there’s no automatic 50/50 division, here’s what you need to know:

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1. If You Bought It, You Keep It

Anything you purchased under your name—whether it’s a house, a car, or a business—is yours to keep when the relationship ends.

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2. Jointly Owned Property is Split

If you bought something together, like a home or a car, you’ll both have a right to your share. If you can’t agree on what to do, you may need to sell it and divide the proceeds or buy out the other person’s share.

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3. Bank Accounts & Debts

• Joint bank accounts are usually split evenly.
• If one partner has personal debt, the other isn’t responsible for it—unless it’s a joint debt (like a shared credit card or loan).

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What About the Family Home?

One of the biggest misunderstandings in common-law relationships is who gets the family home after a breakup.

For married couples, the matrimonial home must be equally shared, even if one spouse’s name is on the title. But for common-law couples, there is no such rule.

• If the home is in your partner’s name, you have no automatic right to stay in it.
• If you own the home, your partner has no automatic claim to it.

However, if you contributed to the home financially—for example, by paying part of the mortgage, funding renovations, or making significant improvements—you might be able to claim an interest in the home through a trust claim (more on this below).

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Can You Claim a Share of Your Partner’s Property? (Trust Claims & Unjust Enrichment)

Even though Ontario’s Family Law Act doesn’t give common-law couples equal property rights, there are legal ways to claim a share of assets that aren’t in your name.

The two main ways to do this are through:

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1. A Constructive Trust Claim

A constructive trust claim is when you argue that you helped increase the value of your partner’s property and should be compensated.

For example:

• If you paid for renovations or helped build an addition to your partner’s house, you might be able to claim a share of the home’s increased value.
• If you worked unpaid in your partner’s business and helped it grow, you may have a right to a portion of that business.

You’ll need to prove your contributions with receipts, bank statements, or other evidence.

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2. An Unjust Enrichment Claim

This applies when your partner financially benefited from your contributions, while you suffered a financial loss.

For example:

• You stayed home to raise children while your partner built a successful business.
• You covered major household expenses while your partner saved money and built wealth.

If you can prove this imbalance, the court may order compensation.

These claims are complicated, so if you think they apply to you, it’s best to speak with a lawyer.

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How to Protect Yourself in a Common-Law Relationship

If you’re in a long-term common-law relationship, the best way to protect your financial future is to plan ahead. Here’s how:

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✔ Get a Cohabitation Agreement – This is like a prenup for common-law couples. It outlines how property will be divided if you separate.

✔ Keep Records of Financial Contributions – If you’re helping pay the mortgage, covering bills, or paying for renovations, keep receipts and bank statements.

✔ Put Both Names on Major Purchases – If you’re buying a home or car together, make sure both names are on the title or ownership documents.

✔ Talk About Money Early – It’s not romantic, but it’s smart. Discuss who owns what, how you’ll share expenses, and what happens if you split.

When a marriage ends, property is divided equally. But for common-law couples in Ontario, it’s a very different story.

• There’s no automatic 50/50 split.
• Each person keeps what they own, unless there’s a joint purchase.
• You may be able to claim a share of your partner’s assets through a trust or unjust enrichment claim—but it’s not easy.

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If you’re going through a common-law separation, talking to a lawyer is crucial. Book a free consultation today to understand your rights and protect what’s yours.

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