Parental union regime

When de facto spouses purchase a home together but their down payments are unequal, what happens if they separate?

Alex, 24, and Sarah, 27, met during their medical residency at Université Laval. They hit it off immediately and quickly decided to move in together.

A little over a year ago, the couple bought a condo. Sarah’s parents wanted to help their daughter with the purchase by giving her a lifetime gift of $100,000 to supplement the down payment. Alex used a $30,000 inheritance he received when his grandmother died for his share of the down payment. The couple are equal co-owners and they also share the cost of the mortgage payments equally.

In August 2025, they had a child, a daughter named Emma. During her maternity leave, Sarah often found herself alone, as Alex had little time for his family due to the fast pace of his medical training. The lack of communication between the spouses gradually drove them apart, to the point where Sarah is considering ending their relationship.

Questions for M^e Cloutier: 

Q. Can Sarah stay in the family residence with Emma?

M^e Cloutier: As co-owner, Sarah has the right to remain in the residence without having to initiate any legal proceedings.

However, if Sarah were not co-owner of the residence with Alex, and in the absence of an agreement with him, she could file with the court an application for right of use of the family residence.

The new parental union regime includes the possibility of granting temporary right of use of the residence, as well as the furniture used in the household, to the spouse who has custody of the child, in order to ensure the child’s stability. The Civil Code of Québec provides that an application must be submitted to the court no later than 120 days after the end of the union.[1]

Since Sarah is on maternity leave and primarily cares for their daughter Emma, for the purposes of this example, she would presumably have custody: she could therefore invoke this measure to remain in the family residence and request that Alex leave the premises. She would make this application to the court, which would render its decision.[2] However, since this is new law, it remains to be seen how the courts will rule on applications of this type.

Q. If Sarah and Alex decide to sell the condo and move out separately, how will the proceeds from the sale be divided, considering Sarah and Alex’s different down payments?

M^e Cloutier. The parental union patrimony includes the family residence. My comments assume that this residence has not been excluded from the parental union patrimony by a modification or exclusion agreement signed by the spouses before a notary.

First, it should be noted that in August 2025, when the couple welcomed their daughter Emma, it would have been good practice for them to make an inventory of their assets and debts, that is, everything they owned respectively before the start of the parental union, since a parental union patrimony is created as soon as a child is born. An inventory or pre-parental union balance sheet is therefore very important and serves as proof of what each spouse owned before the union, which will be very useful in the event of a breakup or death.

Regarding the partition of the proceeds from the sale of the home, the fair market value of the family residence must first be determined at the time of separation.

Concerning the net partitionable value in equal shares between the spouses, it will be calculated based on:

• the net value of the family residence at the beginning of the parental union,
• any debts incurred for its purchase, improvements, maintenance or preservation.

Certain amounts will also be excluded from this calculation, including:

• each spouse’s down payment from a gift or inheritance, as well as the increase in value of the property during the time it was owned by Sarah and Alex.

^[1] Civil Code of Québec, CQLR c CCQ-1991, 521.27. 2024, c. 22, a. 3. 

^[2] Civil Code of Québec, CQLR c CCQ-1991, 521.28. 2024, c. 22, a. 3.

If, in a de facto union with children, one of the parents dies, how do the provisions of their will fit into the legal framework of the parental union regime?

Jessica is 32 years old and has been living in a de facto union with Ali, 34, for six years. They have two children, a four-year-old daughter, Zoe, and a two-and-a-half-year-old son, Leo. Jessica has an eight-year-old daughter from a previous relationship. She is a salaried pharmacist, while Ali works for a company as a database administrator.

After the parental union regime came into effect, they decided by mutual agreement to opt in, even though their two children were born before it came into effect, and to also be subject to the parental union patrimony rules. They are very attached to their family and they believe it is an additional protection for their security. As for the daughter Jessica had from a previous relationship, she would like to provide for her in her will.

Jessica and Ali have a stable relationship, centered on their family and its needs. Their respective careers are also an important aspect of their lives, and they are concerned about their children’s future.

Questions for M^e Cloutier 

Q. Jessica wonders about the best way to protect her eldest daughter, Kate. Will the inheritance she wants to leave her in her will be enough? Is there a more effective way to secure her future? 

M^e Cloutier: First, I would like to clarify the implications of the parental union regime: on the one hand, there is the parental union patrimony, which spouses may choose not to opt in to, and on the other hand, there are all the other protections of the regime that spouses cannot opt out of if they are subject to it (voluntarily, in this case), such as protection of the residence and the compensatory allowance.

Finding the perfect balance in a blended family situation is difficult, so we will have to see what Jessica’s intentions are regarding her three children and her spouse.

It is possible to voluntarily opt in to the parental union regime, and with regard to inheritance in the absence of a will, it will affect all of her children, including Kate.

Assuming that Jessica and Ali voluntarily opt in to the parental union regime, in matters of inheritance, the provisions relating to the partition of the parental union patrimony take priority upon death. When the time comes, this partition will have to be carried out, unless there is an exclusion or a renunciation. Subsequently, in the absence of a will, the balance of the estate will be partitioned with one third going to the spouse and two thirds to the children. For Jessica, this means that Kate would receive a share, since she is included among the legatees receiving two thirds of her estate.

If Jessica wishes to distribute her assets differently, which may be the case, she will need to make a will, preferably a notarial will.  She can then benefit from the advice of a notary to ensure that her wishes are carried out. Following her death, the distribution provided for in her will will take place once the partition of the parental union patrimony has been completed.

In any case, it would be wise for Jessica to consult a notary to explore the various options available to her, but above all to ensure that her wishes are clearly spelled out in her will and that a strategy to secure Kate’s future is in place. If the inheritance Jessica intends to leave to Kate is in the form of a sum of money, it will be necessary to determine whether it will be taken from her assets or whether it will come from the proceeds of a life insurance policy of which the estate would be the beneficiary, and whether a legacy should be included in the will to ensure that the amount is paid to Kate. Once this amount has been established, payment provisions could also be included in the will, such as post-liquidation administration or the creation of a trust for Kate’s benefit, which would allow for the management and protection of the assets intended for her until she reaches a specified age.

For Jessica, a will can therefore be an effective way to secure Kate’s future. In addition, Jessica could open an RESP (Registered Education Savings Plan) now, with Kate as the beneficiary, into which she would pay a set amount periodically, which would be supplemented by federal and provincial grants.

Q. In addition to the partitionable value under the parental union patrimony, Ali would like to leave Jessica some extra money so that she can provide for the family if he dies. He has an RRSP to which his employer contributes a percentage of his salary, and he also has a TFSA to which he has been contributing for about ten years. Knowing that the provisions of the parental union regime take precedence upon death, how could he provide for his spouse and their family?

M^e Cloutier. The RRSP and TFSA will not be taken into account when partitioning the parental union patrimony upon Ali’s death, as they are excluded under the law governing this patrimony, unless they have been included voluntarily.

It would be necessary to see if Jessica and Ali wish to voluntarily include these amounts in the parental union patrimony. Ali could also make a will, preferably a notarial will, in which he would choose to bequeath his RRSP and/or TFSA to his spouse, which would allow Jessica to receive the amounts invested in these plans upon Ali’s death and benefit from the associated tax advantages.

Can unpaid work performed by one spouse for the other spouse be the subject of a monetary claim upon separation?

John Everett, 42, and Megan, 37, decided to move in together and have a child, who was born in July 2025. John Everett is a dental surgeon and co-owner of a dental practice. Megan is a production manager at a marketing company.

The birth of their son Felix somewhat disrupted their life as a couple, but they adjusted. Shortly after returning to work from maternity leave, Megan was involved in a car accident that forced her to take an eight-month leave from work. Drawing on her accounting experience, she offered to help John Everett with the dental practice’s bookkeeping. She spent two to three hours a day on this task while recovering at home. As John Everett’s clinic was experiencing an increase in business, the couple agreed that Megan would cut back on her professional activities for a certain period of time in order to continue her unpaid bookkeeping work for the practice, for a minimum of seven hours per week. She maintained this pace even after returning to work on a flexible schedule.

The demands of their professional and personal lives placed constant stress on the small family. Six years after the birth of their son, Megan announced to John Everett that she wanted to end their relationship.  

Questions for M^e Cloutier 

Q. Does the bookkeeping work that Megan did for John Everett over several years have any tangible value? Can Megan claim monetary compensation for this work? 

M^e Cloutier. One of the measures provided for in the parental union regime is the possibility of applying to the court for a compensatory allowance.

Geneviève could claim monetary compensation for the accounting work she did, which has value, for John Everett’s dental practice. An agreement could obviously be reached between the former spouses, but if not, the parental union regime allows her to apply for a compensatory allowance. In this case, the compensatory allowance could be ordered by a court once Megan has proven her contribution to John Everett’s enrichment through her unpaid work, which may have contributed to her personal impoverishment.

There will obviously be evidence to provide and elements to demonstrate, such as the enrichment of one party relative to the impoverishment of the other. The important point to remember here is that this allowance is not automatic; to receive it, you have to apply to the court. As this is recent law, it will be interesting to see the judgments handed down by the courts in this regard in the coming months.

Q. How will custody rights for their child be determined?

M^e Cloutier. Considering that John Everett and Megan are respectively the father and mother of their son Felix and regardless of their type of union, both parents have the right to custody of the child. Custody rights for their son Felix will be determined based on the best interests of the child, which include factors such as the stability of the family environment, the ability of each parent to meet the child’s needs, and the child’s relationship with each parent.

The new parental union regime emphasizes protection of children’s rights and aims to ensure their well-being in situations of separation, particularly with the protection measure concerning the family residence.

If there is disagreement between the parents regarding custody rights, the couple may resort to family mediation to try to reach an agreement and agree on a parenting schedule. However, to be fully effective, this agreement must be approved by a court.