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#9 frequently asked questions about common-law unions

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1. What if I want the rights of a married couple but I don’t want the certificate or the whole wedding thing?

Some provinces allow you to register your coupledom as a “civil union” or a “domestic partnership.” In Nova Scotia, for example, you just fill out a form for $22.68 and get the same rights as married couples under the law. If the relationship goes to crap, a Statement of Termination costs $30.29. (How cold would that be? A Dear John letter accompanied by three tens and three dimes.)

2. What do I have to do to be considered in a common-law union?

What is common-law for insurance or tax purposes might be different from the family law definition. To be considered a common-law spouse in the eyes of the law, a couple must be in a marriage-like relationship and live together for a certain period of time. That period, in Ontario and New Brunswick, for instance, is three years. In Saskatchewan, it’s two years and you immediately get the rights and responsibilities of a legally married spouse. If you have a child and live together or are in a relationship of some permanence in Ontario, you’re considered to be common-law spouses.

3. What am I entitled to if we split up?

When a common-law relationship ends, some of their rights are the same for people in a regular marriage such as child support and spousal support.

In Saskatchewan, for example, after two years of cohabitation, common-law partners become legal spouses for the purpose of dividing property upon death or if the relationship breaks up. (When the union ends, spouses are entitled to half of the equity of the family home, the increase in value of investments from the two-year mark, etc.)

However, when a common-law union ends in Ontario, Nova Scotia and Quebec, for examples, you are not automatically entitled to half. You take what is in your name.

4. But I gave this relationship my time and put money into the home.

If you’re living in a province where you don’t have the same rights as married couples and you’ve had a hand in financially in improving the property, or if you’ve made payments against the mortgage, for example, you can try to get that money back by going to court.

5. How do I protect my precious stuff?

Say you want to protect a big inheritance, or you don’t want to have to pay spousal support. You need a cohabitation agreement. It can be signed at any point in the relationship and is like a prenuptial agreement, spelling out mutual property rights, support obligations and provisions for children.

6. What happens if my partner dies?

In Ontario, if a common-law spouse dies, there is no automatic inheritance rights. According to Ontario family law, you would be the inheritor only if your partner named you in a will or as the beneficiary of an asset. If there’s no will or other designation, then money, the home, the cottage, etc. goes to your partner’s blood relatives. That means her cousin, Bob, whom she’s never met, could be entitled to her assets over you, her common-law spouse.

But if you’re in Saskatchewan, existing wills are automatically revoked on the second anniversary of cohabitation. That means if you die after living together for two years, without a will, your surviving spouse can make a claim for your estate.

7. She refuses to prepare a will because it’s “morbid.” How else can I protect myself?

This is not a replacement for a will but in the event of death, you might consider getting life insurance for you and your common-law spouse with each other as the beneficiaries.

“For a lot of couples, that is their estate plan,” Christine Van Cauwenberghe, assistant vice-president of tax and estate planning, at Investors Group says. “For a lot of blended families, they want to leave their estate to their kids from the previous relationship. So insurance in many cases is the solution. That is a great option but you have to be insurable and your partner has to be willing to be insured.”

8. How do you have this conversation: “Uh, we need to see a lawyer in case one day I don’t love you anymore and don’t want you to have my cottage”?

“It’s usually easiest when you have an objective third party. Let the financial planner, the accountant, or the lawyer, be the bad guy,” says Ms. Van Cauwenberghe. “Ask your financial planner to explain to your partner what the issues are.”

9. Or this conversation: “Uh, let’s talk about death.”

Here’s wills and estate lawyer Barry Fish’s suggestion: “Would you happy if I was out on the street? If something happens to you, I’d have no rights.”

Have more questions? Visit financialpost.com from 1 p.m. to 2 p.m. EST Monday, March 11 for our live-chat with legal and financial experts about common-law spouses and money matters.