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Caution:  This page contains GENERAL LEGAL INFORMATION ONLY. 
It is NOT LEGAL ADVICE nor a replacement for talking to a lawyer and getting legal advice about your case.    
The law can be complicated and the details of a case can be even more complicated!  There are exceptions for every rule. 
What you do not know can harm you.  Rely on general legal information AT YOUR OWN RISK.

Property -Married or Not

 

Rights to equalization of property and possession of the matrimonial home only arise from marriage.  The claims for property set out on this article apply to both married and non-married spouses (i.e. common-law partners). 

There is no specific period of cohabitation, nor a requirement to have children to qualify as common-law spouses, for these property claims.  (In theory, these claims may also be available to those in relationships that are not marriage-like.)

Ownership & Property Interests
Spouse have the rights of ownership or interests in property in the same way as any individual (whether in a relationship or not).  If a person has title to land or a vehicle, he/she have an owner's interest.  If there is a bank account in his/her name, then he/she own the money.

However, proving ownership can be complicated, if the spouses have merging finances.  For example:

  • Whose money was used to purchase the couch?
  • Was the jewelry bought by one spouse as a gift to the other?
  • Joint bank accounts are presumed to be 50:50, but was this the actual contribution?

It may be complex to prove value.  For example, how do you show the value of jewelry if you have no access to it to get it valued and you have no documents regarding its value.

If you can establish ownership of property, in whole or in part, you may be able to regain control or title to the property or receive compensation for the property.  Depending on the value, this may mean a case in Small Claims Court or in the Superior Court of Justice.  Such claims do not involve the family law. 

If you own real estate with another party, you can ask for the property to be "partitioned and sold".  This can only be done in the Superior Court of Justice.

Trusts
The law recognizes a right to the interest in property or the right to financial compensation based on how property is acquired by the legal owner.  Trusts can arise in a number of ways:

  • by a direct agreement to hold property in trust
  • by the intention of a party to hold property for the benefit of another (a "resulting trust")
  • by operation of the law of equity (a "constructive trust")

Contributory Trusts
The law will impose a "constructive" trust where there is unjust enrichment for an owner of property, usually because of the contribution by one person to another's property - its acquisition, maintenance, or improvement,   There must be no other compensation for the contribution and no intent that compensation be a given.

An example is where a spouse works for years on a farm, improving its value.  The spouse is not paid and it goes beyond a fair distribution of household duties. A judge could decide that, because of this contribution, the spouse has a right to a part interest in the farm or to be paid part of the value of the farm.

Joint Family Venture
In an attempt to give clarity to contributory trusts between spouses, the law has focused on whether there is a "joint family venture".  This includes whether there has been:

  • a mutual effort
  • economic integration
  • actual intent
  • priority given to the family (over individual interests)

If there is a joint family venture and one spouse ends up with ownership of more property, then it would be unjust to allow this to stand.   A contributory trust may result and either a payment may be required or an interest in some of the property may be transferred.

Do You Need a Lawyer?
You may be able to settle disputes about ownership and possession of minor property in Small Claims Court. This is possible without a lawyer. However, if you need to go to the Superior Court of Justice, you should have a lawyer.

Making a trust claim is extremely complicated.  You will need a lawyer!  Outcomes can be hard to predict.  Obtain advice and understand the benefits, costs, and risks, before pursuing trust claims.

Remember the caution given at the top of this page.
You may copy this article for personal use only.
To prododuce it for other purposes, the consent of Michaud Family Law is required.

Michaud Family Law     •    416-707-7976    •    2 County Court Blvd., Suite 434, Brampton, Ontario, L6W 3W8

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