Keith Mack
The definition of common law in Ontario, Canada, is a topic that has caused some confusion. The Canadian Revenue Agency (CRA) has a different definition of common law than the province of Ontario. The CRA defines common law as cohabiting in a conjugal relationship with a person for at least 12 continuous months, or one year, which is a lower threshold than the definition used in Ontario. The CRA's definition is used for tax purposes, and it is important to declare one's common-law status to the CRA to avoid issues with tax returns and benefits. The Ontario Family Law Act defines common law differently for family law purposes, such as separations, custody, and parenting terms. It is important to note that common law in Ontario is considered a de facto relationship, meaning it must be proven on a case-by-case basis.
| Characteristics | Values |
|---|---|
| CRA definition of common law | Cohabiting in a conjugal relationship with a person for at least 12 continuous months. |
| Ontario definition of common law | Different from CRA's definition, as CRA is federal and Ontario is provincial. |
| Impact of marital status on taxes | The CRA combines the income of both partners to determine eligibility for certain tax credits and benefit amounts. |
| Voluntary separation | If the period is less than 90 days, you are still considered to be common law in Ontario. |
| Involuntary separation | If your partner is away for school, work, health reasons, or is incarcerated, you are still considered common law. |
| Legal rights and responsibilities | In common law, you do not need to meet the legal requirements of marriage. |
| Separation from a common-law partner | To be considered officially separated by the CRA, you need to be apart for at least 90 days. |
| Common-law and single tax returns | There are advantages and disadvantages to filing as a common-law partner. You may be able to maximize certain tax credits and deductions, but you may lose some tax credits available to single people. |
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What You'll Learn
Common-law vs married
In Ontario, common-law relationships are legally considered de facto relationships, meaning they must be proven in each individual case. The Canadian Revenue Agency (CRA) defines common-law relationships as cohabiting in a conjugal relationship with a person for at least 12 continuous months, with some sources stating that this period can be as short as one year or as long as three years. This definition is used for tax purposes and across the federal government.
On the other hand, marriage requires meeting legal requirements, such as obtaining a marriage license and having a wedding ceremony officiated by a licensed individual. Marriage is a more formal and legally recognized union between two individuals.
One significant difference between common-law and married couples in Ontario is the process of separation. Common-law couples can simply separate without any legal proceedings, while married couples need to go through a formal divorce process. Additionally, common-law couples may need to involve the government to decide on asset division unless they have a cohabitation agreement in place.
Another difference lies in the tax implications. Common-law couples must each file their own tax returns and include their partner's information, such as their name, social insurance number, and net income. The CRA then combines the income of both partners to determine eligibility for certain tax credits and benefits. This can result in maximizing certain tax credits and deductions, but it may also lead to losing some tax credits that were available when filing as a single person.
It is important to note that the definition of common-law can vary depending on the context, such as immigration or family law purposes, and it may differ between the CRA, Canada, and Ontario definitions.
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CRA definition of common law
The CRA or Canadian Revenue Agency has its own definition of common law, which is different from the definition used by the province of Ontario. According to the CRA, a couple is considered common law when they are cohabiting in a conjugal relationship and are unmarried. This relationship must last for at least 12 continuous months, including any period of separation that is less than 90 days. Alternatively, if the couple has a child together, they are considered common law immediately, according to some sources.
The CRA's definition of common law is important for tax purposes. Common-law couples are treated the same as married couples when filing taxes. Both partners must file their own tax returns and include their partner's name, social insurance number, and net income. The CRA calculates government benefits based on the household income of both partners, which can result in different tax credits and deductions.
It is important to note that the CRA's definition of common law is not the same as the legal definition of common law in Ontario, which is used for family law purposes such as separations, custody, and parenting terms. The CRA's definition is specifically related to tax filing status and the associated benefits and credits.
The CRA requires individuals to update their marital status within one month of any changes, including changes to common-law relationships. This is because an individual's marital status impacts the amount of benefits and credits they receive, as these are calculated based on the adjusted family net income (AFNI) of both partners.
It is worth mentioning that the CRA does not make an assessment of who is in a common-law relationship. Instead, individuals must declare their marital status on their tax returns or by filing an RC65 form. This self-declaration is important to ensure accurate tax filings and avoid any potential consequences of fraudulent tax returns.
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Common law in Ontario defined
Common-law relationships in Ontario, Canada, are legally considered de facto relationships. This means that they must be proven in each individual case based on the facts.
The Canada Revenue Agency (CRA) defines common-law relationships as cohabiting in a conjugal relationship with a person for at least 12 continuous months. This definition is used for tax purposes and is the standard definition across the federal government. The CRA combines the income of both partners to determine eligibility for certain tax credits and benefit amounts.
However, the definition of common law in Ontario for provincial programs and taxes is different. According to some sources, the provincial definition requires three years of cohabitation, or one year if the couple has children. This definition is used for purposes such as family law, dealing with separations, custody, and parenting terms.
It is important to note that common-law relationships in Ontario are not considered an alternative to marriage. Common-law couples have different legal rights and responsibilities than married couples. For example, common-law couples do not need to meet the legal requirements of marriage, and they do not need a formal divorce to separate. However, it is recommended that they enter into a domestic contract, such as a Cohabitation Agreement or Separation Agreement, to set out their rights.
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Common-law and taxes
In Canada, the common-law relationship is defined as living in a conjugal relationship with a person who is not your married spouse, with at least one of the following conditions being met:
- The couple has been living together for at least 12 continuous months, including any period of separation that was less than 90 days due to a relationship breakdown.
- The couple has a child together, either by birth or adoption.
- One partner has custody and control of the other partner's child (or had custody until the child turned 19), and the child is wholly dependent on that person for support.
The Canada Revenue Agency (CRA) considers an individual to be in a common-law relationship for tax purposes if they meet the above definition of common-law and have lived together for at least 12 continuous months. This definition is used across the federal government, and it is important to note that the CRA does not recognize the definition of common-law according to the Ontario Family Law Act, which deals with family law matters such as separations, custody, and parenting terms.
The CRA requires individuals to update their marital status by the end of the month following any changes. For example, if a couple's status changes in March, they must inform the CRA by the end of April. This update is crucial as the CRA calculates government benefits and credits based on the adjusted family net income (AFNI), which includes the income of both spouses or common-law partners.
When filing taxes as common-law partners, each individual must file their own tax return with the CRA and include their partner's name, social insurance number, and net income. While filing as common-law may allow for maximizing certain tax credits and deductions, it can also result in losing some tax credits that were available when filing as a single person.
It is important to accurately report one's marital status on tax returns. If an individual is living in a common-law relationship but does not report it on their tax return, they may be considered guilty of filing a fraudulent return, leading to reassessments for unpaid taxes, interest, and penalties.
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Common-law separation
The definition of common-law differs across various governments in Canada. The CRA definition of common-law is different from the Ontario definition. The CRA definition states that two people are considered common-law when they have been cohabiting in a conjugal relationship for at least 12 continuous months. This definition is used for tax purposes.
In Ontario, a common-law relationship is established after cohabitation for at least three continuous years. However, if the couple has a child together, the common-law status can be established without the three-year cohabitation requirement. It is important to note that common-law spouses in Ontario are considered distinct from married couples. The Ontario government recognises that marriage is an additional step that grants specific rights, such as the right to divide property upon separation.
When it comes to common-law separation in Ontario, there is no formal process or legal requirement for divorce. Common-law couples can separate at any time without taking legal action. However, the separation process can be complex and involve serious legal and financial matters. It is advisable to consult a lawyer and consider a Separation Agreement to establish and clarify the rights and obligations of each spouse.
In terms of property division, common-law partners typically keep the assets they brought into the relationship or acquired during it. If there is joint ownership of property, the division of proceeds upon separation will depend on the specific ownership arrangement outlined in the deed.
Regarding child custody, common-law parents in Ontario have similar rights and responsibilities as married parents. The primary focus in child custody cases is the child's best interests, and courts consider various factors to determine custody and access arrangements.
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Frequently asked questions
The Canadian Revenue Agency (CRA) considers you common law when you are cohabiting in a conjugal relationship with a person for at least 12 continuous months. This is the standard definition used across the federal government.
Common-law couples are treated the same as married couples. You must indicate that you are living in a common-law relationship on your tax return and include your partner's name, social insurance number, and net income. The CRA combines the income for both partners to determine eligibility for certain tax credits and benefit amounts.
The CRA definition is federal, whereas the Ontario definition is provincial. The CRA definition of common law is different from the Ontario Family Law Act definition, which deals with family law purposes such as separations, custody, and parenting terms.
