September is an important planning month for many people. There are those planning for their kids to go back to school, some planning to preserve their fruits and vegetables for the colder months ahead while other holiday enthusiasts are planning to decorate for Halloween (too soon…sorry).

While planning is at the top of mind, consider Estate Planning. Many changes have occurred in recent months, such as change in capital gains tax, and others are set to come in the near future, such as changes to common law couples living in Quebec (conjoints de fait). So, take this month to plan and prepare for those changes.

In Quebec, couples living together, commonly known as common law spouses or conjoints de fait do not have the same rights and obligations as legally married couples do. Agreeing to legally marry implied the creation of a family patrimony (amongst other obligations and responsibilities between married partners) and the partition of the family patrimony in the event of separation. The family patrimony is comprised of the family residence(s), furniture and vehicles used by the family as well as pensions or registered accounts accumulated during the time of the marriage.

Historically, common law couples did not benefit from the same rules and responsibilities as legally married couples. As such, there is no separation of family patrimony in the event of a separation and each person will depart from the relationship with whatever goods or property they entered the relationship with. The Quebec government has tabled and passed Bill 56, a family law reform to come into effect June 30, 2025.

Bill 56 states that in the event of a separation, common law couples will benefit from some partition of the family patrimony notwithstanding their unmarried status. This new law will automatically apply to unmarried couples with children born or adopted after June 29, 2025. Blended families, however, will not be affected by this new reform, unless the couple have or adopt a child together.

Planning is crucial. If families do not meet this new criterion, they can request to opt into the new regime. Inversely, couples who may consider starting a family can plan to opt out of this regime by way of contract[1]. Either way, planning becomes essential to ensure your objectives are met.

People can have documents in place to address different outcomes in the event of a separation, incapacity or even death. Each stage of a persons’ life may require a different type of planning and may change with an individuals’ financial or personal evolution. Here are some useful examples:

• Common Law couples can have a contract to pre-determine various aspects of their life while living together and in the event of a separation.
• Soon-to-be married couples can also plan by way or a pre-nuptial agreement.
• Parents looking to “gift” money to their children, for the down payment of a property for example, may consider gifting the funds by way of notarial deed to preserve and protect the funds in the event of separation.
• A notarial Will can ensure the transition of wealth to designated beneficiaries. In particular, amongst common law spouses in Quebec, whereby a common law partner will not automatically inherit from their partner if the person dies without a Will.[2]

The moral of this blog is to plan for the future by way of written agreements, Wills and Protective Mandates so as to preserve your intentions, protect your patrimony and transfer wealth to the intended people. If you are not sure where to start, start by having a conversation with a trusted advisor who can help guide you and answer any questions that you may have.

Written by: Diana Leopardi, Scotiatrust

[1] Note that the contract must be notarial form or signed before two witnesses.

[2] Important to note that the new family law reform, Bill 56, will allow common law partner, in a parental union, to inherit as per legal devolution in the Quebec Civil Code, if the partner died without a Will. Those couples who were not in a parental union will not inherit if the partner dies without a Will.