Kara Sears
In Canada, common-law status assumes a more permanent relationship and that a couple is building a family unit together. This status is not recognized in much of the world, which often leads to confusion. Common-law couples in Canada have many of the same rights as married couples, but it's important to understand the distinction, especially when it comes to immigration. For instance, failing to declare a common-law partner on an immigration application may result in that partner being unable to accompany the applicant to Canada later on. To change one's marital status in Canada, individuals must inform the Canada Revenue Agency (CRA) by the end of the month following the change. This can be done online, by phone, or by filing form RC65.
| Characteristics | Values |
|---|---|
| Common-law status definition | A marriage-like relationship where two people, both over 18 years of age, either opposite or same-sex, have lived together for at least 12 consecutive months in a conjugal relationship. |
| Common-law status declaration | It is important to declare your status as common-law on any Canadian immigration applications that you make. |
| Common-law status and taxes | Common-law couples in Canada are not allowed to file joint returns; instead, they each file single returns and mark that they're in a partnership. |
| Common-law status and benefits | Your marital status has an impact on the amount(s) you receive since your benefit and credit payments are calculated based on your adjusted family net income (AFNI), which includes your income and that of your spouse or common-law partner. |
| Common-law status and pension | You may be able to split pension income with a partner to reduce your overall tax liability. |
| Common-law status and immigration | Failing to declare that you have a common-law partner at the time of your application to Canada may result in that partner never being able to accompany you to Canada at a later date. |
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What You'll Learn
Common-law status and immigration
In Canada, common-law status assumes a more permanent relationship, akin to a marriage-like relationship. It is important to understand the concept of common-law status in the context of Canadian immigration, as failing to declare that you have a common-law partner when applying to immigrate to Canada may result in that partner never being able to accompany you to Canada at a later date.
According to Canadian law, a common-law relationship is defined as a relationship in which two people, both over 18 years of age, either opposite or same-sex:
- Have lived together for at least 12 consecutive months in a conjugal relationship without any long breaks.
- Are in an exclusive relationship that both parties intend to be permanent.
- Present themselves publicly as a couple.
- Have combined their affairs similarly to a married couple, such as having joint bank accounts, shared expenses, joint purchases, and insurance policies that include both parties.
If you meet these criteria, you must declare your status as common-law on any Canadian immigration applications. You may need to provide evidence of cohabitation, such as documents showing the same address. It is important to note that common-law status is not recognised in many countries, so individuals who would be considered single in their country of origin may be classified as common-law according to Canadian standards.
If your relationship status changes to common-law after submitting your application, you can update your status by sending an explanation letter to the relevant authorities. However, it is recommended to seek legal advice before doing so.
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Common-law status and taxes
In Canada, common-law status and taxes are interconnected. When an individual's common-law status changes, their tax situation also changes. It is important to notify the Canada Revenue Agency (CRA) about any changes in marital status, including becoming common-law partners. This can be done through an individual's CRA account, by phone, or by filing Form RC65.
In Canada, individuals file tax returns separately, regardless of their marital status. Each person must indicate their marital status and their spouse's information on their tax return. Common-law couples are not allowed to file joint returns; instead, they file individual returns and indicate their partnership status. Failing to disclose common-law status may result in penalties related to benefits received.
Marital status can impact an individual's eligibility for certain benefits and credits. For example, family incomes are considered when calculating income-tested benefits such as the GST/HST credit or the Canada Child Benefit (CCB). Additionally, couples can benefit from combining charitable donations and medical expenses.
Being in a common-law relationship may also allow couples to transfer or split certain credits and deductions. For instance, they may be able to split pension income to reduce their overall tax liability. However, it is essential to note that not all pensions qualify for pension splitting.
To be recognised as common-law partners in Canada, a couple must have lived together in a conjugal relationship for at least 12 consecutive months. If they have a child together, this period may not be required.
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Common-law status and benefits
In Canada, common-law status is defined as a couple living in a conjugal relationship for at least 12 continuous months. This includes any period of separation of fewer than 90 days due to a relationship breakdown. Alternatively, if one person is the parent of the other's child by birth or adoption, they are automatically considered common-law partners.
It is important to notify the Canada Revenue Agency (CRA) of any changes in your marital status, including becoming common-law partners. This can be done through My Account, by phone, or by filing form RC65. You must also accurately report your marital status when filing your tax return. While marital status does not affect tax rates, it can provide significant benefits for tax purposes. For example, common-law couples can split pension income to reduce their overall tax liability. Additionally, common-law status may impact eligibility for certain benefits and credits, so it is important to update your information with the CRA promptly.
If you are a public service employee, you can update your common-law status through Phoenix self-service or by submitting a change form to Canada Life. This will allow you to extend your coverage to your common-law partner and include them in your pension benefits and group insurance.
It is worth noting that if you fail to disclose your common-law status and file as single, it is considered tax fraud. Therefore, it is essential to stay informed about the requirements and update your information accordingly.
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Common-law status and pensions
In Canada, common-law status impacts pensions in several ways. Firstly, common-law partners can be eligible for survivor benefits, similar to a spouse. This is known as the Supplementary Death Benefit (SDB) and is like a decreasing term life insurance benefit paid to beneficiaries upon the policyholder's death. To name your common-law partner as a beneficiary, you must complete and submit a form or use the Active Member Pension Portal. It is important to notify the Pension Centre of any changes in your marital status, as this will help process survivor pension benefits more quickly in the event of your death.
Secondly, common-law status can impact the taxes you pay on pension income. In Canada, individuals file separate tax returns regardless of marital status. While marital status does not affect tax rates, it can provide tax benefits. For instance, common-law partners can transfer some tax credits and claim amounts that their partner qualifies for, helping to reduce overall tax liability. Additionally, you may be able to split pension income with your common-law partner, further reducing your individual tax burden. However, not all pensions qualify for pension splitting, and specific pensions like OAS and CPP are excluded.
It is important to note that if your common-law relationship ends, you must update your marital status to "separated" if you have been living apart for at least 90 days due to a relationship breakdown. This change in status will impact your eligibility for certain benefits and credits.
To summarise, common-law status in Canada can provide survivor benefits and tax advantages for partners, but it is essential to keep your information up to date with the Pension Centre and Canada Revenue Agency to ensure quick processing of benefits and accurate tax filings.
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Common-law status and applications
In Canada, common-law couples are provided with many of the same rights as married couples. However, common-law status is not recognised in much of the world, leading to confusion over what constitutes a common-law relationship. It is important to understand the Canadian definition of common-law status, especially when it comes to immigration.
For Canadian immigration purposes, a common-law marriage is a relationship in which two people, both over 18 years of age, either opposite or same-sex:
- Have lived together for at least 12 consecutive months in a conjugal relationship without any long breaks.
- Are in an exclusive relationship that both parties intend to be permanent.
- Present themselves publicly as a couple.
- Have combined their affairs similarly to a married couple (e.g., joint bank accounts, shared expenses, joint purchases, insurance policies).
If you meet these criteria, you must declare your status as common-law on any Canadian immigration applications. Failing to do so may result in your partner never being able to accompany you to Canada at a later date. It is important to refer to your significant other as your common-law partner if that is the nature of your relationship. Applications to sponsor a common-law partner have been declined because one partner referred to the other as their "girlfriend" or "boyfriend".
Additionally, you must inform the Canada Revenue Agency (CRA) about your common-law status by the end of the month following the change in status. You can do this through My Account, by phone, or by filing form RC65. You must also accurately report your marital status when filing your tax return. Common-law couples in Canada file individual tax returns and mark that they are in a partnership.
You may also need to demonstrate how long you have cohabited with your partner for immigration purposes, so evidence of the same address is essential. Ensure that you officially change your address as soon as possible for things like your driver's license, health care coverage, payslips, and income tax filing.
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Frequently asked questions
Common-law status in Canada assumes a more permanent relationship, akin to a marriage. It is a relationship in which two people, both over 18 years of age, either opposite or same-sex: have lived together for at least 12 consecutive months, are in an exclusive relationship that both parties intend to be permanent, present themselves publicly as a couple, and have combined their affairs like a married couple.
To change your status to common-law in Canada, you must inform the Canada Revenue Agency (CRA) by the end of the month following the change in your status. You can do this online, by phone, or by filing form RC65.
Failing to update your status to common-law in Canada can result in tax fraud charges if you file as single. Additionally, it may affect your eligibility for benefits and credits.
In Canada, common-law couples file individual tax returns and are not allowed to file joint returns. They must accurately report their common-law status and the income of their partner. While marital status doesn't affect tax rates, it can offer significant benefits for tax purposes.
When immigrating to Canada, it is crucial to understand common-law status. Canada recognizes common-law partnerships, but many other countries do not. Failing to declare a common-law partner during the immigration process may result in that partner being unable to accompany you to Canada later on.
