My common law partner wants me to add their name to the deed in Nova Scotia. What are the risks of doing this?

Because common law partners are not protected by the Matrimonial Property Act (which protects the home that legally married people live in, even if only one of them is on the deed), it may be desirable to add your common law partner to the deed as a joint owner.

Joint Ownership avoids Probate upon Death of one partner

Doing so provides a mechanism to ensure the property goes directly to the partner upon your death without having to navigate the Probate Court process.

Risks and Benefits of making someone a co-owner of your property

However, there are risks and some benefits you should be aware of before adding an owner to the title of your real property in Nova Scotia.

Once a person is added as a co-owner of a property, they cannot be removed without their consent or court order (which is extremely difficult to obtain, and only available in very particular circumstances). The law will consider the property to be owned equally by all owners, even if one of them owned it for many years prior to the change.

There are some exceptions to this under Trust law, but again, this is only available via a court order.

Co-habitation Agreement Alternative

An alternative to adding a partner to the deed to your home may be to sign a cohabitation agreement which outlines what happens to the home if you separate. For example, if your partner has made substantial financial contributions, such as renovations to the property, you may want to create an agreement that they will be paid back for those contributions, in exchange for agreeing not to make a claim on your property.

Tax Implications

If the property in question is not your primary residence (like a cottage or vacation home), it is important to discuss any potential capital gains tax or other tax issues with an accountant before making the decision to add an owner to your property. For more information on things to consider before changing ownership of your property see our blog: How do I change the title ownership name on my property deed in Nova Scotia?

By: Anastacia DesLauriers – Lawyer

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