While buying a home with your spouse or partner is an exciting milestone, there are some important legal implications to be aware of. Whether you’re married or a common law couple, understanding your rights, along with your partner’s rights is an essential part of ensuring you’re both protected in the future.
Note: While this blog post covers a few high-level considerations, it’s not intended to provide formal legal advice. In these cases, there’s no substitute for proper guidance from a lawyer.
Thinking about sharing a home with your partner but don’t know if you should move in with them or buy something new? Explore our blog post on the topic to discover which path suits you best.
Legal Implications For Common Law Couples
In today’s day and age, a lot of couples may choose to buy their first home together before even tying the knot. In Ontario, a couple is considered common law if they have lived together for a minimum of three years. A couple that lives together and has a child together may also be considered common law if they’ve shared a home for a significant period of time that is less than three years.
Despite a common law relationship and a marriage sharing many common characteristics, they’re not the same in the eyes of the law. One of the biggest differences is that common law couples do not have the automatic right to property. This could impact you or your partner in the event of a separation or if one of you passes away.
When a common law couple breaks up, each partner keeps their own belongings and shared assets are divided equally. This includes property, which is typically sold jointly with the money spilt evenly between partners. Alternatively, one partner can buy the other out. If you and your common law partner choose to buy a home together, it’s important to ensure both names are on the title.
Getting ready to move in with your partner? Explore these blog posts for helpful tips on making the most of your shared space.
- How to Successfully Merge Households With a New Partner
- Options For Storing Furniture When You Run Out of Room
- How Buying Your Second Home is Different Than Buying Your First
Consider a Cohabitation Agreement
In a common law relationship, one of the easiest ways for each partner to protect themselves when buying a home is with a cohabitation agreement. This is a formal document that determines how your home and shared belongings will be divided in the event of separation. While creating a cohabitation agreement can be somewhat awkward, it helps protect you and your partner in the long run.
How it Works For Married Couples
When it comes to buying a home together, things are typically less complicated for married couples compared to common law partners. In Ontario, certain legal factors of homeownership are already predetermined for married couples.
Once a couple gets married, certain possessions are automatically shared – including the home. Even if only one partner’s name is on the title of the home, both spouses are considered to have equal rights to possession.
Who Takes Care of the Mortgage?
For most married couples, a joint mortgage is the easiest method of financing a home together. On top of sharing responsibility and key decisions, a joint mortgage also provides couples greater leverage during the buying process as they’re able to make a larger down payment.
In some cases, only one partner may be eligible to put their name on the mortgage due to personal or financial circumstances. However, even if only one person is on the mortgage, both partners will still have equal rights to the home under the Family Law Act.
Are you (and your partner) planning on buying a home for the first time? Explore these blog posts to expand your knowledge about the process of buying a home in Toronto.
- 3 Neighbourhoods That Are Perfect For First-Time Homebuyers
- What Buyers Should Know About Rising Interest Rates
- For Condo Buyers: A Guide to Interim Occupancy in Toronto
Unlock a Personalized Buying Experience
If you’re looking to buy a home with your spouse, partner, or on your own, the best way to break into the market is with the help of an experienced real estate agent. At Silver Burtnick & Associates, our expert buying services are tailored to your unique goals. Our team can help you and your partner find your dream home – whatever it may look like.
Whether you’re looking to merge households or sell and buy a new place together, our team is here to help! Call 416-587-3300 to get started! Or send us an email.
