According to the latest data from Statistics Canada, the number of common-law couples in Canada rose 13.9 per cent between 2006 and 2011. This rise of couples purchasing homes before marriage is a part of the trend in how millennials view marriage.
More specifically, if an unmarried couple who owns a home together wants to separate and sell the home, the court could treat the separation of assets as an accounting exercise. This means the home could be divided according to who put in what.
On the other hand, if the couple were married or formerly married then the accounts may be divided equally. This is because from the date of ceremony the couple is considered a partnership regardless of who deposits and withdrawals money from the accounts.
Furthermore, if you are a common-law couple looking to purchase a home we recommend sitting down with a lawyer to draft a cohabitation agreement. This is similar to a marriage or prenuptial agreement that will lay out the rights and responsibilities of each person entering into the agreement. Overall, entering a binding agreement will ensure security and commitment and guarantee stability and fairness in the home buying and selling process.
Have you sold your home, and now can use an advance on your equity before closing day, perhaps you need money for renovations? Tembo Financial can help! Tembo offers this unique service to homeowners in Ontario and the GTA. You could receive your money in as little as 48 hours with no credit check and no appraisal* for expenses that matter to you. Don’t wait, start today!
*Subject to qualification.