Many British Columbians live in committed relationships without getting married. While some couples choose this path for personal reasons, others want flexibility or do not feel an immediate need for legal recognition. Whatever the reason, common-law relationships are now one of the most common family structures in BC. Couples often share finances, raise children together, buy homes, build businesses, or blend families. Despite this integration, many do not realize how their legal rights differ from those of married spouses, especially when it comes to estate planning.

Understanding the legal impact of common-law relationships helps couples make informed decisions that support their long-term financial and personal goals. Estate planning is not just about distributing property; it also protects families, safeguards assets, and ensures the right people can support you during illness or incapacity. LC Notary helps families prepare these documents in a clear, structured, and practical way. Many couples are relieved to discover how clear the process becomes once they've had an open discussion and their legal plan is established.

When a Couple Is Considered Common-Law in BC

While British Columbia’s definition of a common-law spouse is based on the Family Law Act, the process of determining whether a couple qualifies as spouses is not always simple and straightforward. A couple is generally considered spouses if they have lived together in a marriage-like relationship for at least two years. They can also be considered spouses in some circumstances, if they have lived together for a shorter time but share a child together. Also, cohabitation does not need to be continuous. Couples separated for short periods may still be considered spouses, if the relationship remained marriage-like overall.

This definition applies to areas such as property division when a relationship ends. However, when dealing with estates, another law becomes important. The Wills, Estates and Succession Act (WESA) governs how property passes after someone dies. Under WESA, a common-law spouse also qualifies as a “spouse” for inheritance purposes if the relationship meets the criteria described above.

Understanding these definitions is essential because your relationship status affects what happens to your assets, even if you assume things will be handled informally. Many people are surprised to learn that partners of two years or more may have rights similar to married spouses, while partners of less than two years may not have those same protections. That difference can be significant, especially for blended families or couples who have not yet made formal estate plans.

What Happens if You Pass Away Without a Will

If someone dies without a Will in BC, WESA decides who inherits their estate. This is known as dying intestate. Many assume their common-law partner will automatically inherit everything., but this is not always true, and the outcome may be very unexpected. The law distributes assets based on a specific formula that includes the spouse and possible children.

If the deceased has no children, the spouse generally receives the entire estate. If the deceased has children with the surviving spouse, the spouse receives the household’s personal effects, a preferential share of the estate, and a portion of what remains. If the deceased has children from a previous relationship, the division becomes more complicated as the spouse may receive a reduced share, and the children may receive a portion immediately, regardless of the deceased person’s wishes.

For blended families, intestacy can create even more tension. Children from earlier relationships may feel a sense of entitlement, even if the deceased would have preferred to support their partner first. The surviving partner may lose control of shared property or face the sale of assets to satisfy the legal formula.

This situation is avoidable. Creating a Will ensures your partner receives the support you intend. If you want to learn more about the importance of estate planning, a helpful resource is our blog post “What Happens If You Die Without a Will in BC?”, which explains intestacy in more detail.

How Property Is Treated in Common-Law Estates

Property rights are often misunderstood in common-law relationships. Couples may believe that owning property together or living in a home long enough guarantees inheritance rights, which is not necessarily the case.

Property held jointly

Property held in “joint tenancy” usually passes directly to the surviving partner through the right of survivorship. This transfer generally happens outside the estate, and the survivor becomes the sole owner without going through probate. Many couples choose joint tenancy for convenience. However, joint tenancy may not always align with your family structure or your long-term goals, especially for blended families or parents who want to support children from earlier relationships.

Property held separately

If only one partner is on title and the deceased does not have a Will, the surviving partner may not automatically inherit the property. The home may become part of the estate and distributed under WESA. This can force the sale of the property or require the surviving partner to take legal action to remain in the home. In some cases, a partner may claim a legal interest in the property under family law principles, but this may add complexity that could be avoided with proper estate planning.

Property owned before the relationship

Assets owned by one partner before the relationship often remain separate. These assets may not pass to the surviving partner unless the deceased specifically names them as a beneficiary or includes them in the Will. Without planning, these assets may go to children or other relatives, instead of the common-law partner.

Real estate purchased together

Many couples purchase a home before they understand the legal implications. Title structure, mortgage responsibility, and the form of ownership, all affect the estate outcome, and most of the time there is no sufficient planning done at that stage. Therefore, proper guidance from a Notary or Lawyer during the real estate purchase could help couples structure their title ownership in a way that would protect each person’s interests and wishes.

Rights of Common-Law Spouses During Incapacity

Estate planning is not limited to what happens after death. Common-law partners also face challenges if one partner becomes unable to manage their affairs.

Financial decision-making

Without a Power of Attorney, a common-law spouse cannot automatically manage the other person’s financial matters. Banks and financial institutions will not provide access without proper legal authority. This can disrupt bill and tax payments, mortgage responsibilities, or financial planning. We explained the value of this document in “Why Is a Power of Attorney Important in BC?” A properly prepared Power of Attorney prevents unnecessary delays and gives the chosen person the ability to act when needed.

Health care decision-making

In contrast to a Power of Attorney, a Representation Agreement is essential for health care decisions. Without one, a common-law spouse may have limited authority to speak on behalf of the other person during illness or incapacity. Although spouses are often consulted, the absence of a proper document can create confusion, especially if other family members disagree on treatment plans. A Representation Agreement provides clear guidance and ensures the right person can make decisions during stressful times.

Estate planning documents bring consistency and reduce conflict, particularly in blended families where adult children, new partners, or extended family members may have different expectations.

The Importance of Beneficiary Designations

Many assets transfer outside the estate through beneficiary designations. These include:

• Life insurance policies
• Registered accounts such as RRSPs and TFSAs
• Pension plans
• Certain investment accounts
  

Common-law spouses may be named as beneficiaries on these accounts even without a Will. However, problems arise when designations are outdated. A surprising number of people forget to update their beneficiary designations after entering a new relationship, and as a result, former partners or beneficiaries may receive funds unintentionally. The law generally follows the designation, even if it contradicts the deceased person’s verbal intentions.

This risk is easy to avoid with periodic reviews, so couples should update designations whenever:

• entering a new relationship;
• purchasing a home together;
• having children;
• separating/divorcing from a former partner;
• the spouse/partner predeceases them;
• completing a Will.
  

A complete estate plan coordinates your Will, your beneficiary designations, and your goals as a couple.

Blended Families and Common-Law Estates

Blended families are common in BC, and common-law relationships often involve children from previous relationships. As you may guess, this creates unique challenges. A surviving partner may expect to stay in the home, while adult children may expect to receive an immediate share of the estate. Conflicts of this type are unfortunately common and often arise from unclear intentions.

A Will can provide direction by:

• allowing the partner to remain in the home for a set period
• dividing assets in stages
• creating a trust for children
• protecting personal property
• outlining responsibilities for estate administration
  

While these testamentary solutions may help families stay connected and minimize disputes, some couples choose planning outside of their Wills, such as owning property as joint tenants and appointing each other as designated beneficiaries under registered investment plans. Since a carefully-customized estate plan is a practical way to support those goals, LC Notary takes sufficient time when helping families who want to avoid conflict and protect their relationships.

Why Common-Law Couples Need a Will

A Will is still the most powerful way to control your estate. For common-law couples, it provides clarity in several areas:

Control over who inherits your property

Without a Will, your estate follows WESA’s formula. With a Will, you decide who receives your assets.

Protection for your partner

A Will ensures your partner has financial support and clear instructions.

Guidance for blended families

Clear instructions reduce stress and help maintain relationships.

Direction for personal property

Sentimental items can be clearly assigned.

Reduced legal complications

A valid Will simplifies probate and lowers the risk of challenges.

A Will also becomes a key piece of a broader estate plan that includes a Power of Attorney and Representation Agreement.

How Common-Law Relationships Affect Taxes and Probate

While probate fees and taxes apply to estates regardless of marital status, the way assets are structured can influence the outcome. For example, property held jointly may transfer directly to a partner without the need to be “probated”. Registered accounts with named beneficiaries also transfer outside probate. Without proper planning, probate costs may be higher than necessary, or assets may pass through the estate even when a more efficient structure is available.

LC Notary helps clients organize their documents and plan for tax impacts. Proper planning helps families avoid or minimize unnecessary fees and reduces any delays.

Potential Disputes for Common-Law Partners

Several types of disputes may arise if a common-law partner passes away without clear instructions:

Disputes over inheritance

Children or relatives may challenge a partner’s right to inherit.

Claims against the estate

A partner could make a claim to receive support if not properly provided for.

Ownership disagreements

Property may become the subject of disputes, especially if one person contributed financially while the other held the entire legal title.

Control of the home

A surviving partner may face pressure to move or sell the property.

Personal property disputes

Items with emotional value can become points of conflict without clear directions.

These disputes are stressful and expensive. They can be avoided with a complete and clear estate plan.

Practical Steps for Common-Law Couples

Common-law couples can strengthen their estate protection by following these simple steps:

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Prepare a Will that reflects your relationship and wishes

1. Create a Power of Attorney to support financial decisions
2. Prepare a Representation Agreement for health care decisions
3. Update beneficiary designations
4. Review property ownership structure
5. Organize important documents and store them securely
6. Discuss your wishes with each other and with your executor
7. Review your plan every few years or after major life changes

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All these steps which may provide both partners with stability and peace of mind, are being covered by LC Notary during our comprehensive estate planning meetings, so please contact us and ask us to book your estate planning consultation so you can assess your unique situation and prepare a customized plan specific to your needs.

Final Thoughts

Common-law relationships are an important part of modern family life in British Columbia. Although the law offers some protection, it does not cover every situation. Couples seeking stability, clarity, and security, could benefit from preparing a comprehensive estate plan that reflects their unique circumstances. A Will, a Power of Attorney, and a Representation Agreement establish the essential legal foundation for protecting both partners and achieving their long-term estate goals.

LC Notary guides and helps couples create these documents through a clear and supportive process. If you would like help preparing or updating your estate plan, you can book an appointment so we can get this process started.

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