Wondering how common law relationships work in Alberta? Whether you’re living with a partner or just wondering what rights and responsibilities come with it, our guide here will break it down in simple terms.
We’ll cover what qualifies as common law relationships in Alberta, how it affects property and support, and what happens if the relationship ends.
What is Common Law in Alberta?
In Alberta, the term “common law relationship” has been replaced by “adult interdependent relationship” (AIR) since 2003. An AIR is a relationship outside marriage where two people share their lives, are emotionally committed to one another, and function as an economic and domestic unit. These adult interdependent partnerships come with extensive legal rights and responsibilities similar to those of married spouses.
According to Statistics Canada’s Alberta Census of Population:
- 58.9% of adults in Alberta lived in a couple, 41.1% were not in a married or common-law union
- Among that, 49.3% were married and 9.6% were in common-law unions
These numbers show that while marriage is still the most common type of couple relationship in Alberta, a significant number of people are choosing to live in common-law or adult interdependent relationships.
How to Qualify as Adult Interdependent Partners
You and your partner are considered Adult Interdependent Partners if you meet ONE of the following three conditions:
- You have lived together in a relationship of interdependence for a continuous period of at least 3 years. The three years do not need to be the most recent period – it can have been at any point during the relationship.
- Couples who have lived together for less than three years can still be considered interdependent partners if they live together with permanence.
- You have entered into a formal Adult Interdependent Partner Agreement. This is a legal document, similar to a contract, that officially declares your status as AIRs.
It’s important to note that AIRs are not limited to romantic or sexual relationships. Platonic and familial relationships can also potentially qualify as AIRs if they meet the above criteria.
Legal Rights and Responsibilities of Common Law Partners in Alberta
The rights and responsibilities of adult interdependent partners are extensive and nearly identical to those of married spouses under Alberta law. Key implications include:
Property Division
As of January 1, 2020, the property division rules for married couples under Alberta’s Family Property Act also apply to AIR partners. This means assets acquired during the relationship are divided fairly, but not necessarily equally, if the relationship ends.
Courts determine property division on a case-by-case basis, considering factors like contributions during the relationship, types of property, and each partner’s situation upon separation.
Gifts and inheritances are generally exempt, and each partner typically keeps assets they brought into the relationship.
Inheritance
If one partner dies without a will, a surviving AIR partner has the same rights as a surviving spouse under Alberta’s Wills and Succession Act. The surviving partner has the priority to apply to administer the estate. They are also treated as a dependent with inheritance rights.
While intestacy laws offer protection, the surviving partner may have to go to court to prove they were in an AIR. This can be a stressful and costly process. Proper estate planning and having a valid will is essential for both partners in a common-law relationship to ensure their wishes are carried out and their assets pass as intended.
Healthcare Decisions
When one partner in an adult interdependent relationship becomes too sick or injured to make decisions, the other partner has the right to step in and make important healthcare choices, such as approving treatments, medications, or surgeries. This is similar to the rights that married couples have.
So, it’s a good idea for both partners to talk about these situations ahead of time and make sure they understand each other’s wishes clearly.
Taxation Rights
Adult interdependent partners are treated the same as married couples when it comes to taxes. They can file their tax returns as a couple, contribute to each other’s RRSPs, and claim tax credits that apply to spouses or partners.
Other Legal Rights
Other rights parallel to marriage include:
- Child support – determined the same as for married couples
- Insurance benefits – partners are often eligible for each other’s workplace or auto insurance
- Pension benefits – partners may be entitled to pensions if their partner dies
- Income assistance – AIR status can affect eligibility for government income assistance
All in all, in most areas of Alberta law, AIR partners have rights and responsibilities similar to those of married couples when it comes to property, inheritance, taxes, and benefits.
How to End an Adult Interdependent Relationship
An AIR does not end simply because you move out. Under Alberta law, there are a few ways you can officially end an adult interdependent relationship in Alberta. Each method helps protect both people and makes it clear when the relationship ends.
Mutual Agreement to Separate
If both partners agree to end the relationship, they can sign a written agreement that says they want to stop being in an AIR and will live apart. This written agreement should state the intention of both partners to terminate the AIR and stop functioning as an economic and domestic unit. Having this writing helps avoid confusion later and proves when the relationship officially ended.
One Year Separation
If AIR partners live apart for a full year and both intend to end the relationship, it is considered officially over under Alberta law. During this time, they must have separate homes and not live together. There should also be clear signs that both partners intended to end the relationship throughout the one-year separation.
Marriage to Another Person
If one partner gets legally married to someone else, the AIR ends right away. That person must tell their AIR partner they plan to marry and that the relationship is over.
Entering a New AIR
If one person starts a new adult interdependent relationship with someone else, the first one ends automatically. They need to meet the legal requirements for a new AIR and should let their former partner know.
Court Declaration
Either AIR partner can apply to the court for a declaration that the relationship is irreconcilable if they believe it can’t be fixed. If the court agrees, a judge will make a formal decision that the AIR has ended.
Once an adult interdependent relationship is successfully terminated through one of the above methods, the division of property and assets must be handled similarly to a divorce:
- The excluded property belongs solely to the original owning partner.
- Family property and assets acquired jointly during the AIR must be divided fairly.
- Increases in the value of the excluded property may need to be shared.
- Debts incurred together must also be divided.
Ending an AIR can be complex, especially when determining the division of assets, property, and debts. Having professional legal advice can help navigate this process during a challenging transition. Partners should formally terminate the relationship and properly separate financial affairs.
Essential Estate Planning for Adult Interdependent Partners
Adult interdependent partners in Alberta need proper estate planning to protect each other and ensure their wishes are followed. Recommendations include:
Sign a Cohabitation Agreement
A cohabitation agreement is a written plan that explains how things like money, property, and debt will be handled if the relationship ends. It can also cover things like support payments or custody if children are involved.
Having this agreement in place helps avoid confusion and arguments later. It’s best to have a lawyer help you write it so that it’s clear and legally binding.
Make a Will
Without valid wills, AIR partners risk their assets passing to unintended beneficiaries upon their deaths.
To avoid this, make a legal will specifying who inherits your property and name your partner as executor. You can also name your partner as your executor, which means they’ll handle your estate after your death.
Be sure to update your will if your relationship changes, and check it every few years to keep it current.
Review Beneficiaries
Review all insurance policies and financial accounts to ensure payouts and transfers go to the right person. Accounts often default to “spouse,” which may not capture common law partners – update this. Name specific individuals as beneficiaries, not just “spouses” or “children.”
Understand Intestacy Rules
If you die without a will, Alberta’s intestacy rules decide who gets your stuff. Your AIR partner is only recognized if the legal requirements are met—so it’s important to have proper documents and proof of the relationship. Without that, your partner may not receive anything.
Communicate with Lawyers
Inform your estate lawyer of your AIR status and provide proof if needed. Documentation includes adult interdependent partner agreements, joint bills, deeds, etc. Ensure your lawyer understands your wishes if one partner dies or if you separate. Your lawyer can help ensure your estate plan properly recognizes the AIR.
Key Takeaways: Get Your Finances in Order
Here’s a quick look at the main things you should know about Adult Interdependent Relationships (AIRs) in Alberta:
- Adult Interdependent Relationship (AIR) is the term used instead of common law in Alberta since 2003
- Couples must cohabit for three years, have a child together, or sign an agreement to be recognized as AIR partners
- AIRs confer extensive legal rights and responsibilities similar to marriage
- Ending an AIR involves dividing assets and debts, much like a divorce
- Proper estate planning is essential for common-law couples to protect each other
The laws governing AIRs allow Alberta courts to treat unmarried couples fairly. However, these relationships also have complex legal implications. Proper planning remains essential to protect your assets in the event of a separation. Don’t leave it to chance; get in touch for a free consultation to discuss your needs. We’ll ensure you have effective legal plans in place so you can focus on your relationship with peace of mind.
To further expand your understanding of cohabiting and adult interdependent partnerships, be sure to also explore each province for the topic Common Law in Canada:
Frequently Asked Questions
How do common law couples in Alberta go about getting legally separated?
The process for legally separating as a common law couple in Alberta involves filing paperwork to terminate your adult interdependent partnership and then dividing assets either mutually or through mediation or courts. Having a prior cohabitation agreement simplifies the process.
What are the property rights for common law couples in Alberta when separating?
Common law couples in Alberta have similar property rights as married couples when separating. Assets acquired during the relationship get divided fairly based on factors like contributions and needs, while excluded property brought in initially remains with the original owner.
Can one member of a common-law couple in Alberta take the other partner's last name?
No, unlike with marriage, there is no provision in Alberta for one common-law partner to legally change their last name to match their partner's last name. Any name change would need to follow the standard legal name change process.
How do common law couples in Alberta qualify for spousal RRSP contributions?
Common law couples in Alberta can make spousal RRSP contributions if they meet the requirements for an adult interdependent relationship, including living together for over three years. Their tax status mirrors that of married couples.
What debt obligations do common-law couples in Alberta have when separating?
Common law couples in Alberta dividing assets upon separation must also divide any debts incurred jointly during the relationship fairly between both partners. This includes credit cards, loans, mortgages, and other shared debts.
Can common-law couples in Alberta file taxes jointly?
Yes, common-law couples in Alberta have the option to file joint tax returns and receive the same credits, deductions, and tax treatment as married couples. Filing jointly often results in tax savings.
How do common law couples in Alberta settle their partner's estate without a will?
The estate of the deceased common law partner in Alberta will pass according to intestacy laws if no will exists. The survivor must prove they qualify as an adult interdependent partner to potentially inherit or administer the estate.
What agreements should common-law couples in Alberta have to protect assets?
Common law couples in Alberta should consider a cohabitation agreement outlining asset division upon separation and will ensure their partner inherits upon death. This clarifies expectations and avoids disputes.
Can common-law couples in Alberta purchase a home together?
Yes, common-law couples in Alberta have the same right as married couples to jointly purchase and own residential property. All standard real estate laws apply regardless of marital status.
How do common law couples in Alberta divide retirement savings when separating?
Retirement assets like RRSPs acquired by common law couples in Alberta during their relationship are considered family property and divided fairly between both partners when separating based on contributions.
Can common-law couples in Alberta open a joint bank account together?
Yes, common-law couples in Alberta have the option to open joint bank accounts with shared access, the same as married couples. This can be convenient for managing shared expenses.
Are common-law couples in Alberta eligible for the same insurance benefits?
Common law couples in Alberta are eligible for partner benefits on both auto insurance and workplace health benefits, similar to married couples, as long as they meet the criteria for an adult interdependent relationship.
How can common-law couples in Alberta ensure their partner inherits estate assets?
Common law couples in Alberta should have properly executed wills and named beneficiaries so that their partner clearly inherits assets like real estate, accounts, pensions, and insurance proceeds upon death.
What happens to inherited assets when common-law couples in Alberta separate?
Any assets acquired through inheritance by common law couples in Alberta remain the excluded property of the inheriting partner. These do not get divided as part of regular family property.
How do common-law couples in Alberta divide household items when separating?
Common law couples in Alberta should aim to mutually divide household items like furniture either informally or through mediation. Items gifted to one partner or owned before the relationship are not considered shared property.
Can one member of a common-law couple in Alberta be the sole owner of a vehicle?
Yes, with common law couples in Alberta, either partner can be the sole registered owner of a vehicle. Upon separation, the partner's property remains excluded unless its value increases significantly during the relationship.
Do common law couples in Alberta require a partition agreement to divide assets?
If common-law couples in Alberta can mutually agree, a partition agreement drawn up by a lawyer can formalize the division of assets and debts upon separation instead of going to court.
What happens if only one partner in a common-law couple in Alberta contributes to a mortgage?
Even if one common-law partner in Alberta alone paid the mortgage, the increase in home value is typically shared upon separation. The excluded property applies only to assets brought into the relationship.
How can a common-law couple in Alberta prepare for the separation or death of a partner?
Common law couples in Alberta should sign a cohabitation agreement, draft wills and powers of attorney, review beneficiaries, close joint accounts, and seek legal advice to prepare for separation or death of a partner.
