Common-Law Partners and Mortgages in Quebec

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In Quebec, common-law partners (unmarried and not civilly united couples) do not benefit from the automatic protections of the family patrimony or matrimonial regimes. Unlike common law provinces, Quebec does not recognize a particular legal status for common-law partners regarding property division. This means that upon separation, there is no mandatory sharing of the residence or mortgage. The owner-partner keeps the property and the mortgage; the other has no automatic right, even if they contributed to mortgage payments. To protect themselves, common-law partners must establish a cohabitation agreement before a notary. They may also choose undivided co-ownership for purchasing the property, defining each partner's share. Mortgage brokers must make their common-law clients aware of these issues and strongly recommend concluding an agreement before purchasing common property.

Quebec is the only Canadian province that does not recognize a particular legal status for common-law partners regarding property division. Unlike married or civilly united couples, common-law partners have no automatic right to share the residence or mortgage value upon separation. This legal reality has major implications for mortgage brokers serving this growing clientele.

The Absence of Automatic Family Patrimony

The family patrimony, which protects married couples by ensuring equitable sharing of the residence, does not apply to common-law partners. Upon separation, the owner-partner keeps the residence and the mortgage. The other partner, even if they contributed financially for years, has no automatic recourse and would need to prove unjust enrichment before the courts, a lengthy, costly and uncertain process.

Protection Solutions

Cohabitation agreement: Have a notary draft a contract defining each partner's rights over the property, mortgage sharing and terms upon separation.
Undivided co-ownership: Purchase the property in undivided co-ownership with defined shares (e.g., 50-50). A notarized co-ownership agreement specifies the rights and obligations of each co-owner.
Will: Draft a will to ensure the surviving partner's protection, as common-law partners do not automatically inherit from each other in Quebec.
Life insurance: Take out life insurance designating the partner as beneficiary to protect against the risk of death and the mortgage burden.

Role of the Mortgage Broker

The mortgage broker must systematically verify clients' conjugal status and inform common-law partners of the legal risks associated with the absence of automatic protection. The broker must recommend consulting a notary to establish appropriate documents. When building the file, the broker must document the ownership structure and ensure both partners understand their respective rights and obligations.

Frequently Asked Questions

Do common-law partners have a right to share the house in Quebec?

No. In Quebec, common-law partners have no automatic right to share the residence upon separation. Family patrimony and matrimonial regimes apply only to married or civilly united couples. The non-owner partner has no automatic claim to the house, even after years of cohabitation.

What is a cohabitation agreement?

A cohabitation agreement is a notarized contract between common-law partners that defines each partner's rights and obligations upon separation or death. It can provide for sharing of the residence, mortgage allocation, right of occupation and each partner's financial contributions. It is the essential protection tool for unmarried couples.

How should common-law partners buy a property?

Common-law partners should buy in undivided co-ownership, clearly defining each partner's share (for example, 50-50 or based on contributions). The co-ownership agreement, drafted by the notary, should provide for buyout terms upon separation, each partner's responsibility for the mortgage and conditions of sale.

If only one partner is on the mortgage, does the other have rights?

No, if only one common-law partner is the owner and borrower, the other has no automatic right to the property nor obligation toward the mortgage. Even if the non-owner partner contributed financially to payments, they would need to prove unjust enrichment before the courts to obtain compensation, which is difficult and costly.