Personal Finance

How to protect investment into house against spouse to be?

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  • Jun 15th, 2018 9:26 pm
Jr. Member
Mar 8, 2014
134 posts
10 upvotes
Mississauga, ON

How to protect investment into house against spouse to be?

A female friend is about to sell condo and buy a house in Burlington area. She has complete financing under own control and that is not problematic. After reading some posts here and other media she is becoming aware and concerned about situation that may arise in future. In short words, have a boyfriend and he moves in. After some time things possibly don't work out and he is out but asking for piece of the property as a common law.
That is a scary proposal. Yes, we heard about prenup but who does that with boyfriend or girlfriend? This sure is not laughing matter. Example: one of her girlfriends is moving out from boyfriend and house he put into his name only. She was paying half expenses while living with him. Never got actually married. She is asking former boyfriend to either pay up or sell the house and pay up. Amount or ratio she is asking for is unknown at this moment but things can turn ugly on a dime.
What person has to do to protect himself or herself of such situation short of never having relationship ?
19 replies
Deal Expert
Aug 2, 2001
18945 posts
10527 upvotes
You are able to draft agreements (cohabitation agreement) when you are not married and have assets to protect. It does happen, but I suspect only when one spouse is incredibly wealthy in comparison.

If you do not draft an agreement then it's up to your provincial laws, I don't think there is any other way around it.
Deal Addict
User avatar
Aug 10, 2006
2324 posts
1309 upvotes
You are able to draft agreements (cohabitation agreement) when you are not married and have assets to protect. It does happen, but I suspect only when one spouse is incredibly wealthy in comparison.

If you do not draft an agreement then it's up to your provincial laws, I don't think there is any other way around it.
sounds like a roomate agreement.
Deal Addict
May 12, 2014
3487 posts
3895 upvotes
Montreal
You will absolutely have to talk to a lawyer.

First, it is important to remember that family law changes over time. So, just because your house may be safe now doesn't mean it will be safe once the NDP or whoever "reforms" family law.

Second, you should also keep in mind that if kids ever enter the picture, most such planning will fail or be severely limited.


The best and safest advice? Only date someone richer than you. ;-)
Deal Fanatic
User avatar
Nov 2, 2013
5697 posts
1522 upvotes
Edmonton, AB
FrancisBacon wrote: Second, you should also keep in mind that if kids ever enter the picture, most such planning will fail or be severely limited.

The best and safest advice? Only date someone richer than you. ;-)
Kids are a case by case basis, but generally the courts value time. The longer she's been with you with the kids, the more opportunity cost she would have occurred to stay with you and the kids while forgoing career income and advancement. The court will use that against you.

If you're paying into something and the spouse or not, put only your name on it. Property law varies upon province, but generally there isn't property division for couples living together if only 1 name is on there, UNLESS it can be proven that the other partner has made financial contributions. So if you do not want the spouse taking any of the property and you two are not married, put only your name on, and don't take any money/paid renos from the spouse.
TrevorK wrote: You are able to draft agreements (cohabitation agreement) when you are not married and have assets to protect. It does happen, but I suspect only when one spouse is incredibly wealthy in comparison.

If you do not draft an agreement then it's up to your provincial laws, I don't think there is any other way around it.
Studies have shown, interestingly enough, such agreements have actually decreased the probability of splitting apart, as the relationship is more formal and concrete, and the financial gains of leaving each other is minimized.
Accountant (Public Practice)
Deal Addict
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Mar 16, 2010
3326 posts
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Doesn't this only matter if you're a man?
Banned
User avatar
Jun 8, 2008
3977 posts
1423 upvotes
Toronto
Dpack22 wrote: Doesn't this only matter if you're a man?
?? Of course it doesn't. You realize women are now allowed out of the home to work too right?
Jr. Member
Mar 8, 2014
134 posts
10 upvotes
Mississauga, ON
This is scary stuff ... may become very expensive
Deal Addict
Nov 13, 2013
4527 posts
3688 upvotes
Ottawa
coolspot wrote: There are no property rights with common law relationships in Ontario, so the house will be safe.

Other assets and debts maybe fair game however.
No automatic rights, but if you pay the mortgage and bills jointly a claim is possible.
Deal Fanatic
Dec 16, 2005
6905 posts
5592 upvotes
easy solution is don't sell the condo. rent it out and then rent a place jointly. If there is extra money, buy another condo as a 2nd rental.
That way you participate in the real estate market AND you protect your assets from the spouse.
Deal Expert
User avatar
Nov 7, 2003
23190 posts
2327 upvotes
Singapore
JackReacher wrote: A female friend is about to sell condo and buy a house in Burlington area. She has complete financing under own control and that is not problematic. After reading some posts here and other media she is becoming aware and concerned about situation that may arise in future. In short words, have a boyfriend and he moves in. After some time things possibly don't work out and he is out but asking for piece of the property as a common law.
That is a scary proposal. Yes, we heard about prenup but who does that with boyfriend or girlfriend? This sure is not laughing matter. Example: one of her girlfriends is moving out from boyfriend and house he put into his name only. She was paying half expenses while living with him. Never got actually married. She is asking former boyfriend to either pay up or sell the house and pay up. Amount or ratio she is asking for is unknown at this moment but things can turn ugly on a dime.
What person has to do to protect himself or herself of such situation short of never having relationship ?
I would like to know too. I know every province have different laws. I'm really curious what I can do in British Columbia to protect myself. Also what happens if I have property in Toronto, but I'm being asked for money or sued in British Columbia? Will my other assets be in play despite not being married?
Deal Guru
User avatar
Jun 26, 2005
10111 posts
1966 upvotes
Toronto
The answers were already given above me, so I'lla dd some useless (useful?) info.

You know how sometimes, the old way is better? In the olden days, maybe in my Chinese culture only? People wait till they are married, then they live together.

To me, there is some merit to this "old" way of doing things. In this situation, if the girl followed this "guide", she wouldn't be in this situation of potential risk.
Jr. Member
Nov 20, 2016
151 posts
23 upvotes
coolspot wrote: There are no property rights with common law relationships in Ontario, so the house will be safe.


Other assets and debts maybe fair game however.
My friend’s live in boyfriend of ten years got half the increase in value of her house she owned outright before they met. This was decided by the courts in Ontario.
Jr. Member
Nov 20, 2016
151 posts
23 upvotes
Common law partner can try to get partial custody of childen even if they are not the birth parents. Nevermind the house!
Deal Expert
Oct 6, 2005
16872 posts
2557 upvotes
jimmyho56 wrote: My friend’s live in boyfriend of ten years got half the increase in value of her house she owned outright before they met. This was decided by the courts in Ontario.

Did he contribute to the house expenditures? He probably proved he made a significant contribution to the house - i.e. splitting mortgage payments, etc.
Deal Expert
User avatar
Jan 27, 2004
52935 posts
18144 upvotes
ONTARIO
I think the female friend is actually man. And that MAn is actually the OP. But it was a clever misdirection so we don't all yell @ the OP And tell him to beware of gold diggers. Or to get a prenup. Or to never get into relationships in the first place unless you are certain. or to treat their potential life partner with respect. etc etc.
Deal Addict
May 12, 2014
3487 posts
3895 upvotes
Montreal
jimmyho56 wrote: My friend’s live in boyfriend of ten years got half the increase in value of her house she owned outright before they met. This was decided by the courts in Ontario.

This would never have happened in Quebec. Laws vary widely and wildly by province.

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