So, whether you WANT to be common law spouses or not, if you live with a partner with whom you have conjugal relations for 12 months, you are officially common-law and legally have to submit common-law tax returns. Lots of people lie and file as single anyway. If I lie, I risk being audited once they see my name changes to match his after our wedding this year.
And the taxes thing isn’t so bad, except that if I’m telling the CRA we’re common-law, then I must also tell Canada Student Loans (same government, so don’t see a choice). And THAT’S the kicker – they increase MY payments based on our combined income regardless of if we live with joint finances. Since I make about half of what he does, I am now forced to be financially dependent on him because I can’t afford an increased payment, but no longer have a choice.
So thank you, government, you’ve decided our finances for us. Here’s an idea, just because two people live in the same home and boink does not mean they want to be financially tied to each other. There are plenty who have no joint assets or accounts and just split everything like roommies do. My fiance and I are two of those people, and I resent being forced to depend on his money.
—Gettin’ hitched, guess it was inevitable
This article appears in Feb 18-24, 2010.
I’m in a common-law relationship myself. The way I look at it is, shouldn’t a logical tax structure be based on the actual situation rather than what you’ve officially declared it to be? Fact is, if you’re living together you *are* financially linked, even if you say you’re not. You get to split the rent. You individually pay much less on utilities.
Let’s get real – you’re not living together for convenient boinking. In fact, you’re not getting married for convenient boinking either. You’re doing it because of the financial advantages. So it’s a bit hypocritical to complain about some of the financial disadvantages when you’re specifically after a bunch of financial bennies.
I completely agree with Realist on this one.
Actually I completely agree with this bitch.
I have never lived with a S/O but I would be really hesitant to make this choice because of the above stated. I want to look after myself and wouldn’t want a S/O to be responsible for MY daycare costs, student loan costs etc.
RID People that live together as roommates split the cost of living, does that mean they should be financially linked for their other personal finances as well?
I understand that getting married or living together, some finances are going to be linked, I just don’t think it’s fair for a S/O to incur pre relationship debt.
And what about people who want to go to school yet need a student loan to do so. If you have a spose that makes enough money, then you can’t get that student loan, making your only other choice to have them pay for you. That’s fucking fair.
Realist, marriage isn’t about financial convenience for everybody. Some people get married because they love each other. Some people wish marriage DIDN’T involve financial co-dependence, especially when there are no children involved. I find being forced to share finances beyong simple rent and bills issues to be an inconvenience of common law partnership and marriage, actually.
And yes, people DO live together for the financial advantage of paying less rent, less on utility bills, etc, BUT that is in no way exclusive to couples. Roommates do it. They are not forced to file taxes together. I don’t see what’s hypocritical about the OP’s complaints??
I am jumping on the Realist bandwagon as well. OP, sounds like you want to have your cake and eat it too.
I mean, if you take out the boinking and the romantic involvement you’re left with a roommate. Obviously, roommates have common living arrangements to cut down on costs as well. But the fact that you are adding a future together as a couple and eventually a married couple means that your intentions have been stated (as far as the government is concerned). I mean, the only difference between your status now and a couple of years down the road is a name change and a piece of paper. I have lived common law as well, and adhering to the respective tax laws is something you have to accept when making such a commitment.
angel- I DO agree with your comment concerning student loans.
So the OB thinks it’s none of the government’s business. I wonder if they would feel the same way for the advantages too, like life/auto/medical/dental insurance, pensions, and let’s not forget splitting of property after a break up. People bitched and complained for decades about getting the same rights as a married couple for “living in sin”. Well now you got it so suck it up.
How does the Government know you’re having “conjugal relations”? They know you have the same address, and they know you have different last names. Therefore, unless they place video cameras just outside your bedroom (or kitchen, or wherever these “relations” are taking place), the only way they know is if you tell them.
I appreciate that you want to be honest, but seriously, look where honesty gets you. They have ZERO way to prove you’re common-law (even if you own property together, which I wish I had known when I had a similar situation last tax year that screwed us out of a $10k tax refund).
Yes, it sucks. Especially since even if you are not considered common-law by Federal *or* Provincial Law (ie: your common-law spouse doesn’t have final divorce papers), you are still considered common-law by Revenue Canada.
They like to screw us on our taxes, that’s the only way they can get extra money to give to the MLAs.
Touché Tim…..
It’s the student loan thing that’s killer though. Taxes, that’s an easy pill to swallow. But even married persons can take out BANK LOANS individually as long as their individual income and credit supports it. In that case, the payments are not determined considering BOTH incomes, just the one who applies. If they don’t have the credit or the income, they’ve got to get a cosigner or they don’t get the loan – which is fair enough! BUT in the case of student loans, you probably didn’t even know your spouse when you took the loan, they didn’t co-sign, but by virtue of living together in a conjugal relationship, their income is considered and makes the payments too high for the loan-holder to pay back on their own. It’s the ONLY loan that works that way. You can own a house, get married, and your payments won’t increase unless you want them to. It’s just so ridiculous.
Yeah jonno, my main issue is the student loan issue.
“just because two people live in the same home and boink does not mean they want to be financially tied to each other”
just because two people live in the same home and boink does not mean… they become legally responsible for each others financial debt.
Are the two statements above related, OP? Think about it.
Personally, I don’t think qualifiying for a STUDENT loan should consider who your fucking, why, for how long nor even IF you cohabitate. The government’s “investment” is in YOU, the student. The student’s ability to obtain a high-paying job offers the gov’t a greater tax base which is why the student loans programs exist in the first place. It’s your government’s OPPORTUNITY to INVEST in you, the STUDENT.
A financial audit cannot prove a romantic relationship prior to marriage. Lots of people fuck their “house-mates”… eventually. “Break up” for a day then amend your application and even consider postponing marriage until after your repayment terms are set.
Words of Wisdom, Governments only know what you tell them!
I am not sure how aggressively this is “policed.”
People do have opposite-sex roommates that are not in any way indicative of their being “together.”
I did live with my fiancé for a year before we were married, and we filed “singly” until we were “official.” (Lots can happen before “the big day.”
My understanding is that it is done on a case-by-case basis, depending on the situation.
Just be honest about the income you report, and about the address where you live and I don’t think you face any serious problems.
And regarding the student loan, mine was hanging around for a few years after we were married, but not once was I ever asked about my husband’s income, so the payments didn’t change just because I got married.
It wouldn’t hurt to ask a tax accountant or lawyer for an hour or two of advice if you feel you really are getting jerked around.
So I had to know for myself if this student loan stuff was true – here’s the fact on the matter, from student loans themselves:
Student Loans doesn’t consider your income or your spouse’s income when they assign you a payment, UNLESS you apply for debt relief or interest relief. Then, as it’s only fair if you have two incomes and live together as spouses, they consider your family income. And if you’re “gettin’ hitched” then you better have talked about how you’re handling all your debt before you say your vows.
Bawls, while I don’t doubt what you are saying, I have heard from so many people that when they are applying for a student loan, there partners income is looked at.
But like I said, I have no personal experience with this.
You’re right fallingangels, they do consider your partner’s income when it comes to issuing a new loan.
I know my adult children when applying for student loans , I the father am looked at . They look at who of the parent combined makes the most money .
Its off topic , but what the fuck does my wage have to do with my independent living alone kids? Thats what I find fucked . Its a laon from the government for them . Its not a loan from me and I am not the one paying it back .
PS I would cut my nuts off and an arm for my kids .
Just wondering also – isn’t it 6 months co habitation that can be considered common law? and randomness is spot on with his post !!!
weedhog, I find the whole student loan issue to be sketchy as fuck, I know it helps alot of people but it definitely screws just as many over.. The thing I always thought was insane about it was that they will refuse to give you a student loan if your parents make over a certain amount. What if your parents aren’t down to shell out the cash, or they hate their kids/ whatever.
FA is right — your “student status” determines what income you have to report on your loan application. If you graduated HS less than 4 years ago and aren’t married you’re a single dependent student and your parents’ incomes is looked at along with your own. If you’re married, you’re a married student and your spouse’s income is looked at (and dependents of the marriage are taken into account) along with your own, and if you’ve been out of HS for more than 4 years and you’re not married, you’re a single independent student and your income alone is looked at.
And bawls is right: your spouse’s income is only looked at if you apply for debt relief because then you pay according to what your family unit can afford to pay (because you are, in fact considered a ‘family unit’ with shared expenses/finances). Under the GOC’s new debt relief program, for the first 10 years your payment is based on 20% of your total income (your own if you’re single, your own and your spouse’s if you’re married) while the government pics up the tab on the interest. If you are making the payment they are asking of you, then they don’t consider your spouse’s income because you are paying based on how much you owe, not how much you make.
Why wouldn’t you just claim to be room mates and avoid the extra charges? Dumb dumb dumb. Lying is an important tool sometimes, use it.
Exactally neville ! And also – common law , parent , grandparent . Why the fuck does someone (especially) common law partner have to carry the load on a loan they aren’t paying? That makes no sense to me atall . Its the person them selves that are making the loan . This system is fucked . Retarded and antiquated beyond belief. it .
Honestly – whats it matter what you partner makes your parents make . They ain’t footing the bill . They aren’t even responsible on default , So whats it matter . Bullshit
check it again bub, last time i heard, it was something like only 6 months.
One of you gets a PO Box number for all correspondence with the government.
If you read the Supreme Court ruling which enabled gay marriage the justices constantly refer to ‘ a loving conjugal relationship’. How the hell do courts know if the relationship of any couple is ‘conjugal’ ?
Joe, it wouldn’t take much of an investigation to figure out who are roomates and who are a couple.
especially since the OP says they’re getting married anyway…yup, sounds like a real tough investigation lol.
nah bawls, the op could just state that they went to Las Vegas for a weekend or something. What happens in Vegas stays in Vegas?
lol
My previous posts been deleted (again) so I’ll try another tack.
IF you are the only one on a reantal lease, you & your lover don’t owe any money jointly, don’t share credit cards or bank accounts. You can live together until the cows come home & if both of you say your just room mates, that is what you are .period.
The Government of this Nation isn’t in our bedrooms at this time, while that is subject to change & unlike our American neighbors, we do not differentiate hetro couples from same sex couples or married couples , we do classify ourselves as being in a relationship or not.
With reguards to 2 room mates who have absolutely nothing to do with each other except business, if you did share living arrangements, banking, & credit, you could find yourself after the appropriate amount of time has past, as being classified as a ‘couple’ by the powers that be… revenue canada style.
IT just means being smart if you want the GOV, to consider you single, but your actually a couple in your own minds 😉
I found myself in the same boat, (sort of), as OP last tax season. Myself and my girlfriend live together and each of us has a child from a previous relationship. I have full custody of my daughter. We split everything (rent, bills, etc equally). Each of us has our own bank account and nothing is joint. I had been claiming my daughter as a dependent and she hers, for 3 years. Last year the C.R.A decided to audit me and advised me that 2 people in the same household can not claim separate dependents. Well I had already received, and used my tax return to pay bills, and did not see it fair, that she should have to get screwed out of hers because of me. Therefore I had to retract my claim for my daughter as a dependent, and therefore had to pay back the substantial return I had received. So let me ask this. What would be the governments stance on 2 females sharing a dwelling, each of them single parents, and claiming their respective children as dependents be? Would this be looked at in a different light than a M & F doing the same thing.
It would depend on the relationship. And again it’s not that hard to prove.