There is a distinction between the treatment of property on dissolution of a marriage versus that of a common law relationship. When a married couple separates the property accumulated during their relationship is generally shared equally. This is done by way of an equalization payment. The equalization payment is calculated by determining the difference between each spouse’s net family property (or net worth) on the valuation date. The valuation date is the separation date.
The spouse with the higher net family property owes an equalization payment to the other spouse. Net family property is calculated, for each spouse, by adding all of the assets of the spouse on valuation date, subtracting all debts of the spouse on valuation date, deducting any assets owned on marriage date and excluding any property eligible for exclusion, such as any gifts or inheritance. This at times is a complex calculation and our lawyers would be happy to sit down with you to clarify exactly how this calculation impacts your specific situation. In a common law relationship, there is no equalization of property.
This does not mean that a common law spouse cannot make a claim against property owned by the other spouse, but this would most likely involve a claim for unjust enrichment, or what is known as a constructive trust. Such a claim would usually be made when a spouse contributed to the acquisition, maintenance or improvement of property owned by the other spouse. These types of claims should be commenced and pursued with the assistance of a lawyer familiar with this particular area of law.