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Moving in together is exciting. There’s the shared grocery list, deciding whose couch makes the cut, figuring out who gets the bigger closet, etc. But there’s another conversation that is worth having before you move those boxes across the threshold: what does living together mean legally?
For many couples, the idea of discussing property, debt or what happens if the relationship ends can feel unromantic. It can seem like you’re planning for a breakup before you’ve even properly unpacked.
But having that conversation isn’t about expecting the relationship to fail. It’s about making sure you both understand where you stand and that the decisions you make together are intentional.
In British Columbia, moving in together can have legal consequences, particularly once a couple has lived together in a marriage-like relationship for two years. Understanding those rules before you move in can help you make informed decisions about your home, finances, and future.
Does living together make you “common-law” in B.C.?
There isn’t a single “common-law” status that automatically applies to every situation. Under B.C.’s Family Law Act, an unmarried couple who has lived together in a marriage-like relationship for at least two years is generally considered spouses for the purposes of property division and spousal support.
The Act also recognizes spouses for certain other purposes before the two-year mark. For example, an unmarried couple can be considered spouses for spousal support purposes if they have lived together in a marriage-like relationship for at least two years, or if they have a child together, even if they have lived together for less than two years.
The important takeaway? Moving in together can create legal rights and obligations that may be different from what you expect.
And contrary to another common misconception, you do not need to be married for family property rules to potentially apply.
What happens to property if you separate?
This is where things can get more complicated.
Under B.C.’s Family Law Act, spouses generally share family property equally when they separate, regardless of whose name the property is in or who made the greater financial contribution. Family property can include the family home, bank accounts, investments, RRSPs, pensions and an interest in a business.
That doesn’t necessarily mean that everything either person owned before moving in together suddenly becomes jointly owned.
Certain assets may qualify as “excluded property”, including property acquired before the relationship began and certain gifts or inheritances. However, the increase in value of excluded property during the relationship is generally subject to division.
For example, imagine one partner owns a condo before the couple moves in together. It may be tempting to think: “It’s mine because I bought it before we were together.”
The reality can be more nuanced.
What happens to the condo, any increase in its value and any debt associated with it can depend on the circumstances and the applicable rules under the Family Law Act.
That is why it is worth getting legal advice before moving in, rather than trying to figure everything out after a separation.
What if one person owns the home?
This is a particularly important conversation for couples moving into a home that is owned by only one partner.
You should consider questions such as:
There isn’t necessarily a one-size-fits-all answer.
The key is to understand the legal position before making significant financial commitments.
What about debt?
Moving in together doesn’t just mean sharing a home. It often means sharing expenses and sometimes taking on financial obligations together.
Maybe one person has student loans. Maybe the other has a line of credit. Perhaps you’re planning to buy a home together, finance a renovation or purchase a vehicle.
It is worth having an honest conversation about:
Under B.C.’s Family Law Act, family debt can be subject to division between spouses. The rules can be more complicated than simply looking at whose name appears on a credit card or loan.
A little financial transparency at the beginning can go a long way.
Should you have a cohabitation agreement?
A cohabitation agreement is a contract between two people who are living together (or planning to live together) that sets out how certain financial and property matters will be dealt with during the relationship and if the relationship ends.
A cohabitation agreement can address matters such as:
B.C.’s Family Law Act allows spouses to make agreements about the division of property and debt, including agreements that provide for a different arrangement than the default statutory rules.
The benefit is that you get to make thoughtful decisions about your financial arrangements together, rather than leaving those decisions to be sorted out during an emotionally difficult separation.
What if we don’t own much yet?
This may may actually be the best time to have the conversation.
When you’re 25 and moving into your first apartment together, you may not have a house, investment portfolio or substantial savings. But that can change quickly.
A few years later, you may have purchased a home, built investments, started a business, accumulated retirement savings or taken on significant debt.
The earlier you discuss your financial expectations, the easier it can be to establish a clear understanding of how you want to handle those things.
And a cohabitation agreement doesn’t have to be complicated simply for the sake of being complicated. It should reflect your actual circumstances and priorities.
What about the family home?
The family home deserves particular attention.
If you are buying a home together, you should discuss how title will be held, what each person’s financial contribution will be, and how the home will be handled in the case of separation.
If one person already owns the home, the conversation can be even more important.
Before moving in, consider getting advice about the legal implications of the arrangement and documenting the parties’ intentions where appropriate.
This is particularly important if one partner will be contributing significant amounts toward the mortgage, renovations or other expenses associated with a home owned by the other partner.
When should you talk to a lawyer?
If you are moving in with a partner, particularly where one or both of you own significant assets, own a home, have children, have a business or have substantial debt, it is worth understanding your legal position before you take the next step.
A lawyer can help you understand how B.C.’s family law rules apply to your particular circumstances and whether a cohabitation agreement makes sense for you.
At GBC Law, we believe legal advice should be practical, personal and tailored to your life and not filled with unnecessary legal jargon. If you’re moving in with your partner and want to understand your rights and responsibilities under B.C. family law, we can help you determine what steps make sense for your situation, including whether a cohabitation agreement should be part of the conversation.
