Advertisement
Canada's complicated common law rules are the same regardless of sexual orientation
I have a female friend who plans on moving in with another woman. Do the laws regarding division of assets apply to same-sex couples? I plan to leave money to my friend upon my death.
—Neil M., Interior B.C.
Girl meets boy. Girl meets girl. The common law rules are the same regardless of sexual orientation. But that’s where the simplicity ends. The length of time before you’re considered common law differs depending on where you live; as does whether or not the surviving spouse has a right to claim a share of the deceased’s property. “When you separate as common-law spouses or when a death occurs, sorting out rights and obligations can be like playing a game of Twister—only much more expensive,” says Michael Cochrane, a family lawyer in Toronto and author of Surviving Your Divorce. In a province where the spouse has the right to claim, such as B.C., and the person making the gift does not want the spouse to benefit, Cochrane suggests he or she “should include a specific clause in their will stating that the inheritance and any growth in the inheritance is not to be shared with the deceased beneficiary’s spouse.” In addition, the inheritance should be kept separate from joint assets and not used on shared expenses such as renovating the kitchen or paying down the mortgage. Even in a province that does not give the surviving common-law spouse these rights, such as Ontario, adding that clause is a good precaution. Book a consultation with an estate lawyer and talk with your friend so she clearly understands your intentions.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Canadians with no children or siblings must consider estate planning alternatives. Here’s why trust companies can be a good...
The Trump effect and Trumponomics, Shopify’s huge earnings beat, it’s sunny days for Suncor shareholders and more.
You started investing in your 20s, and you feel pretty good about doing it. But now what? Consider impact...
Bitcoin surges, Coinbase makes a splash in Canadian football, and could bitcoin’s creator be Canadian?
The federal government’s capital gains inclusion rate increase has yet to become law. There’s a slight chance it may...
Canadians have reporting requirements for foreign assets, income and tax paid. Here’s how to claim each of these on...
Apple and Nvidia vie for global market cap crown; Google, Microsoft and Meta crush earnings; Amazon’s Bezos takes WaPo...
MoneySense’s editor-in-chief Lisa Hannam answers the My MoneySense questionnaire for MoneySense’s 25th anniversary.
If you are struggling with the higher cost of living in Canada and you need more income, you could...
