Understanding Common Law in Canada: CRA Rules, Legal Definitions, and Complexities
- kholmes21
- Jan 16
- 2 min read
January 16 2025
When it comes to defining relationships in Canada, "common law" carries significant legal weight, especially in matters of taxes, benefits, and family law. Understanding how the Canada Revenue Agency (CRA) and provincial laws like those in Ontario treat common law relationships is crucial for avoiding legal and financial pitfalls.
How the CRA Defines Common Law
The CRA considers you to be in a common-law relationship if you live with a partner in a conjugal relationship for at least 12 consecutive months, or sooner if you share a child by birth or adoption. This designation impacts your tax filings, eligibility for benefits like the Canada Child Benefit, and pension entitlements.
Key takeaway: Whether you're filing taxes or receiving government support, once you're classified as common law, your partner's income and circumstances may affect your financial situation.
Statutory Declaration of a Common-Law Union
A statutory declaration of a common-law union is often required to prove your relationship for legal or administrative purposes. This document can be submitted to the CRA or other institutions and must be signed and witnessed, usually by a notary public or commissioner of oaths.
You may need this declaration to:
Access benefits.
Confirm your relationship for immigration sponsorship.
Resolve disputes during a separation.
Common-Law Marriages in Ontario and Canada
Common law marriage is not the same as a legal marriage in Canada. In Ontario and most provinces:
Property Rights: Common-law partners do not automatically share property rights upon separation, unlike married couples.
Spousal Support: You may still be eligible for spousal support if your relationship meets specific criteria, such as the length of cohabitation or dependency.
Wills and Estates: Without a will, common-law partners are not entitled to inheritance under intestacy laws.
Different provinces have varying thresholds and protections. For example:
British Columbia: Provides property division rights for common-law couples after two years of cohabitation.
Quebec: Does not recognize common-law unions, leaving couples to rely on contracts or cohabitation agreements for protections.
Legal Complexities and Gaps
While common-law relationships are recognized for tax and benefit purposes, there are significant legal gaps compared to marriage.
Property Division: In most provinces, common-law partners have no automatic right to property acquired during the relationship.
Pension Sharing: While CPP credits may be split, private pensions are often excluded without specific arrangements.
Clarity in Definitions: The CRA's 12-month rule may differ from provincial laws, leading to confusion.
Comparison Table: Common-Law vs. Marriage
Aspect | Common Law | Marriage |
Property Rights | No automatic sharing | Equal division of marital property |
Spousal Support | Based on cohabitation length and dependency | Automatically considered |
Inheritance Without Will | Not entitled | Entitled |
Federal Tax Benefits | Recognized if 12-month criteria is met | Recognized immediately |
Key Links
Understanding the nuances of common law relationships is essential for safeguarding your legal and financial rights. Whether you're managing shared finances, separating, or navigating estate planning, knowledge is your strongest ally.
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