Marriage and Common-Law Relationships

Marriage is a significant milestone for many people; however, it’s not the only form of household arrangement, as some people choose to live common law. Whether it’s a marriage or a common-law relationship, the decision to align your life (and, as a result, your finances) with another individual is a major decision that carries financial planning implications.

Did You Know?

There is no uniform definition of a spouse across Canada. Legislation varies by province regarding granting rights to partners in a marriage or spousal (common-law or same-sex) relationship. The federal government has its own definition of a "spouse." In Quebec, spouse refers to a married spouse.

Quebec’s Civil Code does not recognize common-law spouses (called de facto partners). However, legislation may still assign rights to de facto spouses to receive benefits in certain circumstances. If you are in a common-law or de facto relationship, check out the legislation of your province to identify your status and rights.

Proper financial planning, with your spouse/partner in mind, can go a long way towards ensuring a healthy and lasting relationship. Pay close attention to the following topics.

Financial Planning

• Individual goals and goals you share as a couple
• Household assets and debts
• Household income and expenses

Investing

• Design tax-efficient portfolios

Retirement

• Life after work: maintaining relationships
• Plan for retirement
• Survivor income

Tax

• Tax and life events: marriage and common-law relationships

Life & Death

• Calculate your life insurance needs
• Draft a will
• Surviving spouse’s rights and obligations
• Questions to ask your spouse/partner
• Enduring power of attorney
• Personal directive

Case Studies

• Build Your Portfolio:

  • While You’re Working: Mid-Career: Solid Performer – Jim and Brenda’s Story
  • In Retirement: Retired: $60,000/Year Income – Binita and Vijay’s Story
  • In Retirement: Retired: $80,000/Year Income with DB Pension – Joe and Tanya’s Story
• Manage Your Portfolio:
  • While You’re Working: Mid-Career: Solid Performer – Jim and Brenda’s Annual Review
  • In Retirement: Retired ($60,000/Year Income): Managed by a Pro Portfolio – Binita and Vijay’s Assessment
  • In Retirement: Retired ($80,000/Year Income): Self-Managed Portfolio – Joe and Tanya’s Assessment
• Identifying How Much Life Insurance Is Needed - Li and Sunny’s Story