Northwest Territories Common-Law Property Rights

If you have lived with your partner in the Northwest Territories for at least two years, you have the same property division rights as a married couple. This surprises many common-law partners who assume that because they never signed a marriage certificate, their assets remain entirely separate.

The Two-Year Threshold

Under the NWT Family Law Act, a "spouse" includes any person who has cohabited with another in a conjugal relationship for at least two continuous years. A shorter period also qualifies if the couple are the natural or adoptive parents of a child together.

Once this threshold is crossed, the common-law partner has full access to:

• Equal division of family property — the same equalization calculation that applies to married couples
• Spousal support claims — entitlement, quantum, and duration under the SSAG
• Matrimonial home protections — equal right of possession and the ability to seek exclusive possession orders
• CPP credit splitting — mandatory, same as for married couples

The NWT is one of the more generous Canadian jurisdictions for common-law property rights. In some provinces, common-law partners have no automatic right to property division at all and must rely on unjust enrichment claims in court.

How Equalization Works for Common-Law Partners

The process is identical to married couples:

1. Determine the start date — the date cohabitation began (not the marriage date, since there is none)
2. Determine the separation date — the date the conjugal relationship ended
3. Calculate each partner's NFP — assets at separation minus debts at separation minus excluded property minus net assets at the start of cohabitation
4. The partner with the higher NFP pays half the difference to the other

The only difference from a married couple is the reference points: "date of marriage" becomes "date cohabitation began" in the NFP formula.

Proving the Cohabitation Period

Unlike marriage, which has a certificate with a specific date, common-law cohabitation often starts gradually. If the partners disagree on when they moved in together, the court looks at objective evidence:

• Shared address on government ID, tax returns, or insurance policies
• Joint bank accounts or shared expenses — leases, utility bills, mortgage payments
• CRA common-law status — whether either partner reported the other as a common-law spouse on their tax return
• Statutory declarations filed with Service Canada for benefit purposes
• Testimony from friends and family about when the couple began living together

The safest approach is to document the start date in writing — a cohabitation agreement signed near the beginning of the relationship removes any ambiguity.

Cohabitation Agreements

A cohabitation agreement is a contract signed by both partners that sets out how property will be divided if the relationship ends. It can override the default equal division rules under the Family Law Act, protecting pre-relationship assets and specifying the treatment of specific items like a home, business, or inheritance.

To be enforceable, a cohabitation agreement requires:

• Full financial disclosure by both parties at the time of signing
• Independent Legal Advice for each partner
• Terms that are not unconscionable

Without a cohabitation agreement, the default rules apply — full equalization of all family property accumulated during the relationship.

The Northwest Territories Divorce Financial Split Guide covers the common-law equalization process in full, including worksheets that use the cohabitation start date as the reference point.

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