Common-law Partnership

[MonkeyRPN]

How does one get into a common-law partnership in Canada...? Is there any registration to be done... or you can just declare that status after cohabiting for at least a year?

[overboost]

When you do your taxes, there is a box that allows you to specify the common law partnership. If you check the box, you will then need to specify the date which is was effective. Then later on, CRA will send you a form which the two of you will have to sign.


How does one get into a common-law partnership in Canada...? Is there any registration to be done... or you can just declare that status after cohabiting for at least a year?

[jerryhung]

funny timing, I just asked someone this question today
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/personal-info/marital-e.html

[ghostryder]

When you do your taxes, there is a box that allows you to specify the common law partnership. If you check the box, you will then need to specify the date which is was effective. Then later on, CRA will send you a form which the two of you will have to sign.

Huh???

All there is on the T1 General is a box for "check box that applies to your marital status as of Dec 31", nothing else.

And I've never had to sign any other form

http://www.cra-arc.gc.ca/E/pbg/tf/5000-r/5000-r-06e.pdf

[chococrazy]

Just to let you know, if you move in with someone who used their home buyer's plan to purchase that home, and you become common law, you cannot use your own HBP later if you move from that home.

And yeah, it's just a marital status checkbox on your T1, I never had to do anything else.

[CheapScotsman]

and just to clarify it a little bit more ... its not optional. Once you have entered into a common law relationship, you are obligated to report it

Of course, you don't have to but then you are in violation of CRA regulations and could incur penalties.

[MonkeyRPN]

My question is based out of my plan to sponsor my partner to become a permanent resident. We would've been living together for 12 months by the end of August.

So this sounds like other than letters, photos, bills, etc that prove we are in a legitamite relationship... I don't need any other official registration declaring we're common-law? Cause to fill out the T1 form... my partner would need a SIN number... which means she'll need to be a PR...?

[felix]

What are the financial benefits in becoming common-law compared to single or married?

[BelligerentDog]

I believe you only have to be living together for 3 months now to be considered common law.

[chococrazy]

I believe you only have to be living together for 3 months now to be considered common law.

Wrong.

http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/personal-info/marital-e.html

Common-law partner

A common-law partner applies to a person who is not your spouse (see above), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

a) has been living with you in a conjugal relationship for at least 12 continuous months;

b) is the parent of your child by birth or adoption; or

c) has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than a person described in b) or c) above) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

[najibs]

What are the financial benefits in becoming common-law compared to single or married?

She gets half of your underwear drawer and your beer fridge when you split :twisted:

[Absolute]

Becoming common-law is easy - just live together for a year. Now, getting married and then divorced, that's a challenge with the government!

[BelligerentDog]

Wrong.

http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/personal-info/marital-e.html

Common-law partner

A common-law partner applies to a person who is not your spouse (see above), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

a) has been living with you in a conjugal relationship for at least 12 continuous months;

b) is the parent of your child by birth or adoption; or

c) has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than a person described in b) or c) above) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

Hmm, could have sworn I read it was 3 months at work. /shrug

Also, financial benefits here: http://www.hrblock.ca/your_life/getting_married.asp

[siwong44]

My question is based out of my plan to sponsor my partner to become a permanent resident. We would've been living together for 12 months by the end of August.

So this sounds like other than letters, photos, bills, etc that prove we are in a legitamite relationship... I don't need any other official registration declaring we're common-law? Cause to fill out the T1 form... my partner would need a SIN number... which means she'll need to be a PR...?

Youv only known your partner for 12 months.
I would be careful before sponsoring your partner.

I did. I known her for 3 years.
After the papers came.. She was gone..

Live and learn...

[Nikita]

The definition and link provided by chococrazy is only the definition for purposes of the Income Tax Act. You'll find different legislation defines the same term in different ways. For example, the Family Law Act defines spouse in different ways for different purposes. For example, with respect to child or spousal support, 'spouse' is defined in the following way: (Note: the term common-law is not used at all in this legislation.)

“spouse” means a spouse as defined in subsection 1 (1), and in addition includes either of two persons who are not married to each other and have cohabited,

(a) continuously for a period of not less than three years, or

(b) in a relationship of some permanence, if they are the natural or adoptive parents of a child. (“conjoint”) R.S.O. 1990, c. F.3, s. 29; 1999, c. 6, s. 25 (2); 2005, c. 5, s. 27 (4-6).

However, for purposes of equalization of family property, for example, the same Act defines spouse as follows:

Definitions

1. (1) In this Act,

“spouse” means either of two persons who,

(a) are married to each other, or

(b) have together entered into a marriage that is voidable or void, in good faith on the part of a person relying on this clause to assert any right.

For immigration purposes it may be something altogether different. Before you make any irrevocable decisions, I'd check the Immigration Act or speak with a lawyer. There are not only benefits to being a spouse (common-law or otherwise), there are also obligations. You should familiarize yourself with what you're getting yourself into.