Common-Law Couples and Property in Ontario: The Rules May Surprise You

Imagine living in a home for years, raising children there, contributing to household expenses, helping with renovations, building a life together—and then discovering that your legal right to stay in that home may not be what you assumed.

That is exactly why a recent Ontario court decision deserves attention.

A Toronto-area case involved an unmarried couple who had lived together and had young children. After they separated, the woman—who was the sole registered owner of the property—wanted to sell. Her former partner remained in the home and claimed an ownership interest, but the dispute over that claim had not yet been decided at trial.

The court nevertheless ordered him to leave the property within 45 days and gave the registered owner authority to move forward with the sale. His ownership claim was not dismissed; instead, the net proceeds could be protected while the legal dispute continued.

For many Ontario homeowners and couples, that sounds surprising. After all, if two people have lived together as a family for years, shouldn’t they automatically have similar rights to a married couple?

Not necessarily.

And that distinction can become enormously important when real estate is involved.

Common-Law and Married Couples Are Not Treated the Same Way

One of the biggest misunderstandings we encounter is the belief that becoming “common-law” eventually gives a couple essentially the same property rights as being legally married.

Ontario law does not work that way.

When a marriage ends, Ontario’s Family Law Act provides a system for calculating and equalizing the spouses’ net family property. The matrimonial home also receives special treatment, including possessory rights that can apply to both married spouses even when only one spouse is on title.

Ontario’s own guidance makes the contrast quite clear: common-law couples are not automatically required to divide property acquired while they lived together in the same manner as married couples.

That means the name—or names—registered on title can become extremely important.

If a home is registered solely in one partner’s name, the other partner does not automatically become a 50% owner simply because the relationship lasted several years, because they helped with bills, or because the couple had children together.

That can be a very uncomfortable discovery to make during a separation.

The Toronto Case Shows How Quickly the Issue Can Become Real

In Fournier v. Giannousopoulos, decided by the Ontario Superior Court of Justice in May 2026, the applicant was the sole registered owner of the Toronto property.

According to the court record, her former partner continued living in the property after their separation while disputing his interest in it. The registered owner had been carrying significant property expenses, including the mortgage, taxes, insurance and utilities.

The evidence indicated that she had spent more than $76,000 on property-related and household expenses over approximately 17 months.

Eventually, she asked the court for vacant possession of the home and authority to handle the sale herself.

Her former partner opposed the request. He claimed, among other things, that he had a constructive trust interest in the property and that the couple had operated as a joint family venture.

The court did not have to decide the ultimate value of that claim before allowing the home to be sold.

Instead, the court ordered him to vacate within 45 days and permitted the registered owner to proceed with the sale, while allowing the disputed net sale proceeds to be protected pending resolution of the ownership claim.

That distinction matters.

The court was not necessarily saying, “You contributed nothing and you are entitled to nothing.”

It was saying, in effect, that an unresolved equitable claim does not automatically create the same possessory rights that a married spouse may have in a matrimonial home.

For couples who assume that living together creates automatic ownership rights, that is a significant wake-up call.

But What If You Paid Toward the House?

This is usually the next question.

What happens when one partner is on title, but the other contributed financially?

Maybe one person paid part of the down payment. Maybe both partners paid the mortgage from a joint account. Perhaps one partner funded a major renovation, built an addition, managed the household while the other partner developed a business, or contributed years of unpaid labour.

Those contributions may matter enormously—but they do not necessarily change registered ownership automatically.

Depending on the circumstances, a person may pursue an equitable claim such as unjust enrichment or a constructive trust. Courts can also examine whether the couple functioned as a joint family venture.

These are legitimate legal remedies, but there is an important difference between having a potential claim and already owning a defined percentage of a property.

A claim generally needs evidence.

Bank statements. Transfers. Receipts. Renovation invoices. Mortgage payments. Communications between the partners. Evidence of unpaid work. Evidence showing how finances were organized and what each person understood the arrangement to be.

In other words, “But we both knew it was our house” may feel completely obvious inside a relationship. In litigation, the court may need considerably more than that.

A Major Ontario Case Shows Why Contributions Still Matter

The Ontario courts have also demonstrated that meaningful contributions to a relationship can support very substantial unjust enrichment awards in appropriate cases.

In Mullin v. Sherlock, the court considered a long relationship in which Ms. Mullin made significant contributions to her partner’s business and their shared life. She performed substantial work in the business, including periods when she was underpaid or unpaid.

The trial court ultimately found unjust enrichment and awarded her $3 million, representing 50% of the value the court attributed to the business interest relevant to the claim.

The point is not that every common-law partner who contributes to an asset receives half of it. Far from it.

The lesson is that Ontario courts can recognize contributions that are not reflected on legal title—but proving the claim can require detailed evidence and a legal proceeding.

That is a much different position from having ownership clearly documented from day one.

Why We See This in Real Estate More Often Than You Might Think

After more than two decades around real estate and mortgages, variations of this situation are not difficult to imagine.

Two people decide to buy a home.

One has stronger credit. One has the more stable income. One has less debt. Maybe the mortgage application works more smoothly with only one person as the borrower or registered owner.

At the time, everybody is happy. Nobody wants to turn buying their first home together into a legal seminar over dinner. 😅

So the purchase closes, life moves forward and the title structure is forgotten.

Meanwhile, the partner who is not on title may still be contributing to the mortgage, repairs, furniture, renovations and household expenses.

Years later, if the relationship ends, the question suddenly becomes:

“What do I actually own?”

That is a question worth answering before closing day.

Parents Helping With a Down Payment Should Pay Attention Too

There is another increasingly common scenario.

Parents help an adult child purchase a property with a boyfriend, girlfriend or common-law partner.

Perhaps Mom and Dad contribute $75,000 toward the down payment because they want to help their child enter the GTA market. Everyone is excited. The champagne comes out. The moving boxes arrive. Nobody particularly wants to discuss what happens if the relationship ends three years later.

But they should.

If both partners are registered owners, the ownership structure may have consequences for money that originally came from one side of the family.

Was the parents’ contribution a gift?

Was it a loan?

Was it intended only for their child?

Does documentation clearly reflect that intention?

A gift letter signed for mortgage purposes and a properly documented loan or other legal arrangement can have very different implications. This is precisely where advice from a qualified family or real estate lawyer can be valuable before money changes hands.

Two Conversations Common-Law Couples Should Have Before Buying

Thankfully, the takeaway from all of this is not “never buy a home with someone unless you are married.”

Plenty of unmarried couples successfully buy and own property together.

The better takeaway is: understand the structure you are choosing.

There are two conversations worth having early.

First, talk about a cohabitation agreement.

Section 53 of Ontario’s Family Law Act allows unmarried people who are cohabiting—or planning to cohabit—to enter into an agreement dealing with matters that can include property ownership or division and support obligations.

A cohabitation agreement is not a prediction that your relationship is going to fail.

Neither is home insurance a prediction that your kitchen is going to catch fire.

It is simply a way to decide the rules while both people are communicating well, rather than trying to reconstruct those rules during a stressful separation.

Second, understand exactly how title is being registered.

Ask questions.

Whose name is on title?

How will ownership be divided?

How is the down payment being contributed?

If one person contributes substantially more upfront, is that being documented?

What happens if one person wants to sell and the other does not?

If only one person will be on title because of financing or another consideration, does the other partner understand what that could mean?

These may not be the most romantic conversations you have as a couple, but they may be among the most financially important.

Keep Records Even When Everything Is Going Well

Nobody enjoys keeping a spreadsheet titled “Evidence in Case We Break Up.” Please do not name it that. 😄

But keeping good financial records is simply smart homeownership.

If you contribute money toward a down payment, retain the transfer record.

If you pay for a $30,000 kitchen renovation, keep the invoice.

If parents advance money, document what the money represents.

If ownership arrangements change, speak with the appropriate professionals and update the paperwork properly.

Clear records help everyone understand what actually happened if questions arise later.

Do Not Assume “Common-Law” Answers the Property Question

The term common-law is used constantly in Canada, which can make it sound as though it creates one universal legal status.

It does not.

Different laws use different definitions for different purposes, and rights involving support, taxes, benefits and property are not necessarily identical.

For Ontario real estate, simply saying “we have been common-law for years” does not by itself answer who owns the home or who has the right to remain there after separation.

Those questions can depend on title, agreements, contributions, equitable claims and the specific facts of the relationship.

That is why understanding the paperwork is so important.

Buying Together? Get Clarity Before You Get the Keys 🔑

A home is often the largest asset a couple will ever purchase.

It deserves at least as much conversation as the backsplash colour.

Before buying, talk about ownership. Talk about the down payment. Talk about what happens if one person contributes more. If parents are helping, document that contribution properly. If one person will not be on title, understand why—and understand what that decision means.

Most importantly, bring the right professionals into the conversation before there is a problem.

We are real estate professionals and mortgage agents, not family lawyers, so this article is general information and should not be treated as legal advice. A qualified Ontario lawyer can advise you about your particular rights, cohabitation agreements, trusts, ownership interests and separation issues.

What we can do is help you understand the real estate and financing side of the transaction, explain the situations we regularly see, and help you identify questions worth asking before you sign.

Disclaimer: This article is provided for general educational and informational purposes only and does not constitute legal advice. Real estate ownership and family-law issues are fact-specific. Speak with a qualified Ontario lawyer for advice regarding your individual circumstances.