In common law relationships, there is no need for a formal separation or divorce. You can simply pack up and move on.

Breakups are never easy though. And while this may sound appealing to those who want to avoid the expense and formality of marriage, complications can arise when there are children or significant assets involved.

To be considered common law in Ontario you must live together for at least three years (or have a child together). If the relationship breaks down after this timeline there is no equal division of assets like in marriage. You simply walk away with what you brought in.

This includes the family home. If one partner owned the property prior to the relationship and is the only one on title, they keep the home. In some cases, you might be entitled to some compensation if you made significant contributions to the home.

Where children are involved, the rights and responsibilities for each parent are essentially the same as for married couples. This applies to both spousal and child support, as well as custody issues.

Do you need a Separation Agreement?

If your situation is not complicated, you probably don’t. However, if you’ve been together for a long time, have children or there are significant assets involved, things can get messy. A separation agreement - just like in marriage - can help to avoid costly courtroom battles. A separation agreement outlines the rights and obligations of both parties with respect to child custody, support, and division of property.

In terms of structure, they are essentially the same as those for legally married couples and you should consult a family law attorney for advice and set up.

It’s also worth noting that if you are coming into a relationship with significant assets, it is prudent to start with a cohabitation agreement, as it sets out from the beginning the rights and responsibilities of each party in the event of future separation.