Common Law Relationship in Saskatchewan 2024: A Guide for Unmarried Partners

What is a Common Law Relationship in Saskatchewan?

A common law relationship refers to two people living together in a marriage-like relationship without undergoing a legal marriage ceremony. To be considered common-law partners in Saskatchewan, a couple must have cohabited continuously for at least two years.

According to Statistics Canada, in 2021, common-law couples make up 17% of all couples living in Saskatchewan. (https://www150.statcan.gc.ca/n1/daily-quotidien/220713/g-b005-eng.htm)

The provincial government recognizes common law couples as spouses and accords them similar rights and responsibilities as married couples when it comes to property division, spousal support, inheritance, and substitute decision-making. However, there are some differences between married and common-law couples that unmarried partners should understand.

When Does a Couple Become a Common Law Relationship in Saskatchewan?

There are three main ways unmarried couples in Saskatchewan can attain common law status:

Two Years of Cohabitation

After continuously living together for two years, Saskatchewan considers couples to be common-law spouses. The start of cohabitation is when the couple begins functioning as an economic and domestic unit, not just staying together temporarily.

Cohabitation means living together voluntarily in a conjugal, marriage-like relationship. Couples don’t need to have a sexual relationship, but they do need to share domestic responsibilities, finances, and a home in order to be common law.

Having a Child Together

Unmarried couples who have a child together are considered common law spouses in Saskatchewan under family law, even if they have not lived together for two full years.

This provision aims to protect the rights and responsibilities of parents who have a child outside of marriage. The minimum cohabitation period is waived since the couple has demonstrated a permanent commitment by having a child.

Entering into a Cohabitation Agreement

Couples who want to formalize their common-law relationship sooner can become spouses right away by signing a cohabitation agreement. This legal contract outlines the rights and responsibilities of each partner.

By laying out financial and property terms upfront, a cohabitation agreement can act as proof of cohabitation and spousal status, overriding the two-year requirement.

Rights and Responsibilities of Common Law Relationship in Saskatchewan

Common law spouses in Saskatchewan have similar rights and obligations as married couples when it comes to:

Property Division if the Relationship Ends

Under Saskatchewan’s Family Property Act, all assets and debts acquired during the relationship are considered “family property” that must be divided equally if common law spouses separate. This presumptive 50/50 split applies to:

• Assets purchased together or individually after cohabitation begins
• Increase in value of pre-cohabitation assets
• Debts incurred by one or both spouses

Without a cohabitation agreement stipulating otherwise, common law couples must adhere to equal division of family property after cohabiting for two years.

Eligibility for Spousal Support

The provincial Family Maintenance Act allows for common law partners in Saskatchewan to claim spousal support upon relationship breakdown, just as married spouses can. Support may be warranted when there is a disparity of incomes or a partner’s earning capacity is compromised during the relationship.

An unmarried spouse’s right to support depends on factors like relationship duration, roles within the partnership, age, health, careers, and child obligations. Support aims to balance any economic advantages or disadvantages arising from the relationship.

Inheritance Rights Under Intestacy Laws

Under The Intestate Succession Act, common law partners in Saskatchewan can inherit in the same manner as legally married spouses if their partner dies without a will in Saskatchewan. The estate passes entirely to the surviving spouse if there are no surviving children, parents, or siblings.

Making a will is still vital to ensure assets go where intended and avoid complications of intestacy. But intestacy laws provide some protection for surviving common law partners in Saskatchewan.

Substitute Decision-Making Authority

Saskatchewan’s Health Care Directives and Substitute Health Care Decision Makers Act names common-law partners among the default substitute decision-makers when a person loses the mental capacity to make their own health decisions.

After the proxy named in an advance health care directive, the first in line is a spouse, including a common-law partner.

How Do Common Law Relationships in Saskatchewan and Married Relationships Differ?

Common law and married couples have very similar rights and obligations in Saskatchewan, with a few key differences:

Comparison of Rights Between Married and Common Law Couples:

No Need for Formal Dissolution of the Relationship

Unlike married spouses who must get divorced through court processes before assets can be divided or they can marry again, common law partners in Saskatchewan can end their relationship without any legal process.

They just need to separate and stop presenting themselves as a couple. One partner moving out and living separately is enough to dissolve the common law union after 90 days apart. No court approval is required.

Two-Year Limitation Period for Property Claims After Separation

While married spouses face no deadline to make claims about property division, common law partners have just two years to make claims under family property laws after separating.

This limitation period incentivizes common-law couples to divide assets and debts promptly after splitting up. Otherwise, the claims expire.

Other Minor Differences

A few other subtle differences between married and common-law couples in Saskatchewan include:

• Common law partners must prove their relationship meets the requirements
• They cannot collect spousal CPP survivor benefits
• Partnerships can end through separation rather than requiring divorce
• No automatic claim for equalization of net family properties

Aside from those exceptions, common law and married couples have essentially equal rights and duties around property, support, inheritance, and decision-making.

How to Protect Your Interests in a Common Law Relationship in Saskatchewan

Common law couples in Saskatchewan have legal protections, but unmarried partners can still take proactive steps to define the terms of their relationship and safeguard their rights.

Creating an Asset List

Partners should list significant assets owned before cohabitating so it’sit’s clear what property belongs to whom. This asset list can help avoid disputes if the relationship ends. Any items not listed will likely be considered shared family property.

Keeping records of major purchases and investments made during the relationship is also prudent for tracking family property subject to division.

Making a Cohabitation Agreement

The best way for common law couples in Saskatchewan to outline their rights and responsibilities is through a cohabitation agreement. This legal contract typically covers the following:

Finances:

• How expenses will be shared
• Who owns which assets
• How debts and liabilities will be handled
• Bank account arrangements

Property Division:

• Who gets what in case of separation
• Excluding pre-cohabitation assets from the division

Spousal Support:

• Whether one partner waives the right to support
• Support payment terms

Children and Parenting:

• Custody arrangements
• Child support calculation and payment details
• Parental rights and responsibilities

Cohabitation agreements offer helpful clarity and can override default laws if properly executed. Partners should hire their own lawyers when drafting this contract.

Making Wills

Wills allow common-law couples in Saskatchewan to designate inheritance wishes legally. This can provide more certainty and control compared to intestacy laws.

Wills also names an estate executor to administer the process and can appoint guardians for children. Dying without valid wills risks property disputes, high taxes, and outcomes contrary to the deceased’s final wishes.

According to a 2022 survey, 62% of Canadian adults do not have a will (source: https://www.legalwills.ca/blog/canadians-without-wills/), including many common law partners leaving their estate matters unresolved.

How Taxes and Benefits Treat Common Law Relationships in Saskatchewan

Common law partners in Saskatchewan need to understand how attaining spousal status impacts their taxes, government benefits, and related obligations.

Changing Marital Status with CRA

Once a couple meets the requirements, they must notify CRA of their change in marital status from single to common law. This impacts tax brackets, credits, deductions, and other assessments.

Failing to update the CRA about a change in common law status can lead to penalties for misrepresentation and incorrect tax liability. Common law requires couples to file taxes separately but with linked accounts.

Comparison of CRA Tax Filing for Married vs. Common Law Couples:

Implications When Common Law Couples in Saskatchewan Have Children

If common-law partners in Saskatchewan have a child together, they remain separate filers, but CRA links their returns to adjust child benefits appropriately between them.

The partner with a lower net income must claim the child for purposes of benefits and credits like the Canada Child Benefit. The higher earner cannot claim the child even if they pay child support.

Here’s a summary of the available amounts for the 2021-2022 period:

– $349 per month for an individual.

– $349 per month for a partner or spouse.

– $137 per month per child (maximum of two children per household).

Therefore, the highest total amount that a household with two kids can receive is $972 per month. The specific amount of aid available depends on the household’s income.

Risks of Not Reporting Common Law Status

Aside from civil penalties, not telling CRA about a change to common law status can constitute tax fraud if it intentionally misrepresents a taxpayer’s situation to gain advantages.

CRA may reassess previous tax returns and determine that benefits were paid improperly or credits claimed incorrectly. Significant tax debt and harsh penalties can result.

Partners who deliberately fail to report their common law status are committing fraud. CRA will recoup money owed plus impose a penalty equal to 50% of the falsely claimed amounts.

Separating and Dividing Assets as a Common Law Couple in Saskatchewan

Common law separations involve many of the same processes as divorce when it comes to dividing property, arranging support, and handling child custody.

The Separation Process Compared to Divorce

Married couples must get formally divorced through court processes before assets can be divided or they can marry again. For common-law partners in Saskatchewan, separating ends the relationship since no legal union existed.

After moving out and living apart for 90 days, one partner can simply register their change in marital status as “separated” with CRA. No legal approvals are needed.

However, common law separations still involve negotiating the division of assets, support, and child-related matters. Court may be required if disputes arise, akin to divorce.

Rules for Dividing Property Equally

Common law couples in Saskatchewan must adhere to the presumption of equal division for any property acquired during the relationship. This applies to:

• Assets purchased together or individually after cohabitation begins
• Increase in value of assets owned prior to living together
• Debts incurred jointly or separately during cohabitation

Partners who contributed unequally can argue for unequal division in court based on evidence. However, the starting point is a 50/50 division of family property upon separation.

Debts Incurred Are Treated the Same as Assets

Not only are assets acquired while living together divided equally, so too are debts racked up jointly or individually during the relationship.

One partner cannot leave the other solely responsible for debts unless there are exceptional circumstances that justify an unequal split. Even after separating, common law partners continue sharing debts 50/50 in most cases.

Formal Separation Agreement Recommended

Rather than relying on default laws, common law partners in Saskatchewan should formalize their separation and division of assets through a separation agreement. This legal document can establish customized terms for:

• Dividing property, assets, and debts
• Spousal and child support payments
• Parenting arrangements like custody
• Any other relevant matters

Partners moving out and separating amicably may think a formal agreement is unnecessary. However, even congenial splits benefit from clear written terms to prevent future disputes.

Conclusion: Key Takeaways for Common Law Couples in Saskatchewan

• Common law requires couples to cohabit for two years in Saskatchewan, with some exceptions, to gain spousal rights.
• They must report their change in marital status to CRA for accurate tax filing and benefits.
• Common law provides most legal protections of marriage, with minor differences around division of property.
• Partners should secure cohabitation and separation agreements to outline financial terms.
• Making wills allows common-law couples to control inheritance matters.
• Separating common law ends the relationship without needing court approval.
• Assets, debts, and children require negotiation upon separation, often benefiting from legal agreements.

Common law partners in Saskatchewan simply cohabiting without marriage carry many similar rights and duties as married couples. However, unmarried couples should still take proactive legal steps to protect their interests, especially when relationships dissolve.

Knowing both your rights and responsibilities under common law in Saskatchewan allows unmarried partners to build secure lives and protect all members of their family.

For guidance tailored to your region, explore our articles on common law relationships across Canada:

• Common Law Relationship in Alberta
• Common Law Relationships in British Columbia

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Frequently Asked Questions (FAQs) about Common Law Relationships in Saskatchewan

Article Sources:

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1. Common Law Saskatchewan: What It Means And What You’re Entitled To – https://www.willful.co/
2. Understanding Common Law in Saskatchewan – https://www.insurdinary.ca/