4 tips for common-law couples

This Valentine’s Day, common-law couples across the country may forgo the sweet nothings for a few candid conversations about money.

A recent Supreme Court ruling that unmarried couples in Quebec have no right to alimony when they split might be persuading more than a few common-law couples to re-examine their financial relationship.

According to Census Canada, the number of common-law couples in Canada rose 13.9%, more than four times the 3.1% increase for married couples. In fact, as a share of all census families, common-law couples were second highest in Quebec (31.5%).

Investors’ Group suggests couples consider the following before cutting the keys:

• Have ‘the talk’ – Have a frank discussion as to how you are going to reconcile your finances on an equitable basis in order to limit or prevent any painful financial consequences, should the relationship end.
• Remain independent – Despite being in a relationship, you and your common-law partner should have your own personal financial objectives, resources and obligations.
• Set out a plan – When you begin living together, be clear with your partner how much you expect to spend, save and invest. Who will be paying which bills and how will the household expenses be divided?
• Get it in writing – See a lawyer and sign an agreement defining the terms of your relationship – this step may save you trouble in the long run if you separate.

Also read:

Advise common-law clients to plan for split

Moving in together? Think tax benefits

Young couples opting for separate accounts

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.