Mar 16, 2026
A breakup is turning into a harsh financial reality check for one homeowner who poured approximately 173% more than his ex-partner into the purchase and renovation of a home — only to realize she can still claim half of the profits.
Calling into The Ramsey Show, John from Los Angeles explained that he and his girlfriend bought a home nearly three years ago with both names on the title and mortgage. While John contributed US$35,000 (C$47,667) to the down payment and another US$35,000 (C$47,667) toward renovations, his girlfriend only contributed US$5,000 (C$6,809). In the midst of a break-up, John called The Ramsey Show to confirm his expectations: he’ll walk away with half the proceeds from the sale of the US$625,000 (C$851,206) home, plus his initial investment of US$70,000 (approximately C$95,300) (1).
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Sadly, The Ramsey Show co-hosts George Kamel and Ken Coleman warned him that his expectations are about to be shattered. Because both names are on the deed for the property, the law will split the proceeds of the home sale 50/50 between John and his ex-partner.
While John’s lesson comes too late, it’s a good reminder for anyone else looking to buy property with a loved one: Know your rights before you sign on the dotted line. To help, here’s what every Canadian needs to know about the division of property during a divorce.
Why the name on the deed outweighs your bank statement
In Canada, as in the U.S., the name on the property title is the primary determinant of ownership. If two people are listed as "joint tenants," they typically have an equal interest in the property, regardless of who paid the down payment or footed the bill for renovations.
There is one exception. Under provincial law, married couples have equal interest in the "matrimonial property," even if only one person is named on the property deed or holds the mortgage. A matrimonial property is the home a couple cohabited during the time of their marriage.
But this exception doesn’t apply to unmarried couples (known as common-law partners), as they generally do not have the same property rights as legally married spouses when a relationship ends. The difference is significant and often surprises people.
Common-law partners must rely on property law and what is written on the deed (3). So, if both people are listed as equal owners on the land title, the law typically treats the asset as a 50-50 split, regardless of who paid the down payment or funded the new kitchen (4).
Without a written cohabitation agreement or property agreement, proving you deserve a larger share because of higher contributions can lead to a "knockout, drag-down fight" in court (5).
The $65,000 'gift' you never intended to give
Without a legal document stating otherwise, the extra US$65,000 (C$88,526) John contributed — his $70,000 minus his ex’s initial $5,000 contribution to the down payment — could effectively become a gift to his ex-partner, which is true whether he lived in the U.S. or Canada.
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In the eyes of the law, what you intended to happen "fairly" matters much less than what is signed on the deed.
How to protect your finances when dissolving your partnership
For Canadians entering a common-law relationship, the emotional stakes are high, but the financial stakes can be higher.
In general, it's suggested that couples get agreements in writing before signing a mortgage (6). Given that recent data shows that more Canadians are co-purchasing homes to combat affordability issues, these legal safeguards are more critical than ever (7).
To avoid John's situation, consider these tactical steps:
- Draft a cohabitation agreement: This is a legal contract for unmarried couples that outlines how assets, including the home, will be divided if the relationship ends
- Specify ownership percentages: Instead of joint tenancy, consider "tenants in common," which allows you to specify exactly what percentage of the home each person owns — such as a 70% to 30% split
- Keep a paper trail: Maintain meticulous records of all financial contributions toward the down payment, mortgage payments and capital improvements like renovations
- Consult a family lawyer: Property laws vary by province, so local expertise is vital
For John, the lesson comes too late. He may be forced to choose between a costly legal battle or losing tens of thousands of dollars. For everyone else, the message is clear: Get it in writing before you sign the mortgage.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Ramsey Show (1); Steps to Justice (2); Ontario.ca: Common-law relationships and cohabitation agreements (3, 4); Redfin (5, 6); Statistics Canada (7)
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Jessica Wong is a freelance writer based in Toronto, Ontario. Her work has appeared in numerous publications including STAY Magazine: Hotel Intelligence and re:porter magazine. With a background in economic development, entrepreneurship and small business consulting, she enjoys writing about topics that help Canadians learn more about personal finance.
