Many Albertans are surprised to learn that common-law partners can now divide
property much like married couples. Since January 1, 2020, Alberta’s Family
Property Act applies to unmarried partners who qualify as adult interdependent
partners. Understanding these rules helps protect your financial future and avoid
costly disputes.
When You Are Considered Common-Law in Alberta
You are legally common-law, or an adult interdependent partner, if:
- You lived together for at least three continuous years; or
- You lived together in a relationship of some permanence and have a child
together; - You signed an Adult Interdependent Partner Agreement
A relationship of interdependence means you share each other’s lives, function as a
domestic and economic unit, and present yourselves as a couple. Simply living
together as roommates does not qualify.
What Counts as Family Property
As common-law partners, most property acquired during the relationship is shared,
including:
- Real estate such as the family home
- Bank accounts, investments, RRSPs, pensions, and TFSAs
- Vehicles, furniture, and personal belongings
- Businesses created or expanded during the relationship
The general rule is equal division, unless that outcome would be unfair.
What Property Is Not Shared
Some assets remain yours alone:
- Property owned before the relationship
- Gifts or inheritances given solely to one partner
- Personal injury or disability settlements
- Property acquired after separation
Important Note: Any increase in the value of excluded property during the
relationship may be shareable. For example, if you owned a home before the
relationship, you keep its original value, but the increase in value during the
relationship may be divided.
Dividing the Increase in Value
Courts consider each partner’s contributions when dividing increases in value,
including:
- Mortgage payments
- Renovation costs or labour
- Paying household expenses so the other partner could build equity
- Childcare, home maintenance, and other contributions supporting the
household
Division depends on what each partner contributed, not simply the length of the
relationship.
When Only One Partner Is on Title
Title does not determine ownership. Even if a home is in one partner’s name, the
other partner may still have a claim based on financial or non-financial
contributions. In these situations, the contributing partner may pursue legal claims
such as:
- Constructive trust
- Unjust enrichment
- Resulting trust
Family Debt
Debts can also be divided, including:
- Credit cards used for family expenses
- Lines of credit for home improvements
- Mortgages and car loans
- Business debt incurred to supported the family
Debts from before the relationship or after separation generally remain with the
person who incurred them.
Protecting Yourself with a Cohabitation Agreement
A cohabitation agreement can set out:
- What property is shared
- What remains separate
- How increases in value will be treated
- Responsibility for debts
- What happens to the home if the relationship ends
These agreements are especially useful before buying a home, starting a business, or
contributing to a partner’s property.
Steps to Take During a Common-Law Separation
Document your contributions
- Keep receipts for renovations and purchases
- Gather bank statements and proof of payments
- Save messages showing financial arrangements
Create an inventory - List all assets and debts
- Identify excluded property and its original value
Get valuations
- Real estate appraisals
- Business, pension, and asset valuations
Preserve financial records
- Record balances on the date of separation
- Keep tax returns, pay stubs, and statements
Seek legal advice early - Know your limitation periods before negotiating
Common Mistakes
- Assuming everything is automatically split 50/50
- Ignoring non-financial contributions such as childcare
- Mixing excluded property with family property
- Failing to keep records of contributions
- Missing limitation periods for making claims
Frequently Asked Questions
Do I have property rights before 3 years of being together?
Not under the Family Property Act, but you may have trust or unjust enrichment
claims if you contributed.
What if we bought a home but are not common-law yet?
If both names are on title, both have ownership rights. If only one name is on title,
ownership follows title until you meet the common-law threshold.
Note: A cohabitation agreement can prevent future disputes.
Can I protect my inheritance?
Yes, keep it separate, avoid using it for joint expenses, and consider a cohabitation
agreement.
Can we divide pensions?
Yes. Pension amounts earned during the relationship are considered family
property.
How long does property division take?
Negotiated settlements may take a few months. Court processes can take a year or
more.
How We Can Help
Our Calgary family law team assists with:
- Property division under the Family Property Act
- Cohabitation agreements
- Separation planning and financial disclosure
- Trust and unjust enrichment claims
- Negotiation, mediation, and court representation
Understanding your rights early can help prevent costly and stressful disputes.
Call 403-300-5297 or email info@lawsnbeyond.com for guidance tailored to
your situation.
