If you’re building a life with your boyfriend, girlfriend, spouse, it’s important to understand how BC law defines your relationship, especially when it comes to property division, inheritance, and financial support. Under BC’s Family Law Act, you are considered spouses if you are legally married, have lived together in a marriage-like (common-law) relationship for at least two years, or have lived together for less than two years but share a child. Once you meet this definition, both partners gain property rights and financial responsibilities under the law, regardless of marital status. 

 

 

In the event of a breakup, BC law generally entitles each spouse to an equal division of family property and debt, even if one partner earned significantly more. If one person has a lower income or gave up career opportunities—for example, to take care of children, spousal support may also be considered. Courts take into account the contributions each partner made to the household, whether financial or otherwise, when deciding if compensation is owed. This is very important when partners are investing together for long-term goals, such as a home or retirement. While registered accounts like RRSPs and TFSAs must be held individually, a joint non-registered investment account allows couples to pool resources and grow wealth as a team.

 

For example, Jessica receives $300,000 from her late grandmother. Wanting to build a life with her boyfriend, she uses the full amount as a down payment on a condo for the two of them to live in. They live together in the condo for 3 years in what the law defines as a common-law. When the relationship ends, Jessica assumed that the condo would remain hers. However, although her boyfriend’s name was not on the title, the condo is considered “family property” and is subject to equal division.

 

Navigating finances with a partner can be complex. From structuring joint accounts to understanding your legal rights and responsibilities in BC, there are many moving parts that can impact your financial future. Property ownership, spousal support, tax implications, and long-term investments all require careful planning and clear communication. Because every couple’s situation is unique, it’s wise to speak with both a family lawyer and a qualified investment advisor. Together, they can help you protect your interests, make informed decisions, and build a financial plan that supports your shared goals. 

 

 

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that any action is taken based upon the latest available information.
The strategies and advice in this newsletter are provided for general guidance. Readers should consult their own Investment Advisor when planning to implement a strategy. Interest rates, market conditions, special offers, tax rulings, and other investment factors are subject to change.