Why does GOSSIP Support the Extension of Marital Property Laws to Common Law Relationships?
The current law provides that when married people separate, the value of any property that was acquired DURING the relationship and any change in value of pre-acquired property is equally divided on the breakdown of the relationship regardless of who paid for it or who holds formal title. This presumption of equal division applies to a range of property interests including houses and cottages, debts, vehicles, pension plans and RRSPs, and business interests. If Bill 53 becomes law, the principle of equal division will also apply to common law relationships once the relationship has lasted for three years or if the parties have registered their relationship as a Registered Domestic Partnership. If parties do NOT want property to be divided equally, they can opt out of this regime. Opting out can be done by a simple written agreement between the parties which they both sign except that opting out of certain pension plans will require that the common law partners (like married partners) g
