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Common-Law Partners : How to Separate Assets After a Breakup?

Assets and debts often become sources of conflict following a separation between common-law partners.

Even though common-law partners may have lived together for many years, they are not as protected by law as married or civilly united couples. Generally, each partner leaves the relationship with their respective assets upon separation. However, after many years, it can be challenging to determine which asset belongs to which partner and to sort them out.

Here are some principles for division :

House or Housing

For a residence, if one (1) of the partners is the sole owner of the residence, they can decide what they wish to do with it. However, they must act in good faith, considering the well-being of the other partner and, especially, any minor children involved. Several other options are available to the owning partner.

If both (2) partners are owners, the decision must be made together. The partner who decides to leave the residence or housing may, for example, request financial compensation from the other partner (certain criteria apply).

Furniture

Generally, each partner takes their respective furniture. That’s why it’s very important to keep all purchase receipts.

For furniture bought by both (2) partners, several alternatives exist. For example, one (1) might keep a particular piece of furniture and give half its value to the other partner by offering a sum of money or an exchange of goods. The division should be equal.

When the dispute is settled amicably, there are no specific rules to follow.

Debts

Each partner is responsible for their own debts.

For debts incurred by both common-law partners (2), one or both partners (1) must continue to assume them. Beware! If it has been decided that a debt contracted jointly will be assumed by one of the partners (1), the other partner with whom the debt was contracted could sue the assuming partner if they fail to make the payment.

To avoid such disputes or conflicts, common-law partners (2) can sign a cohabitation agreement in advance. Upon breakup, this document could help them avoid many headaches.

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