What you need to know about the main features of the new parental union plan
On June 30, 2025, Quebec is introducing a new parental union plan that will automatically apply to common-law spouses who become parents of a child born or adopted on or after that date. This system aims to give greater legal recognition to unmarried couples with children in common, by introducing rules similar to those for marriage, while respecting their civil status.
Creating a parental union estate
Upon the birth or adoption of a child after June 30, 2025, a parental union estate will be created, including :
- Family residences or rights conferring use thereof
- Furniture used to furnish or serve the household
- Vehicles used for family travel (car, motorcycle, boat, etc.)
Assets received by inheritance or gift, before or during the union, are excluded from these assets.
Division of assets in the event of separation
In the event of separation, the net value of the assets of the parental union patrimony, i.e. the value accumulated since the creation of the parental union, will be shared equally between the spouses. However, adjustments may be made in cases of bad faith, short duration of the union or unjustified loss of assets.
Compensatory allowance
A spouse can claim compensation if he or she feels that he or she has been impoverished by his or her contribution to the enrichment of the other spouse’s assets. This benefit can be paid as a lump sum or in instalments.
Protecting the family home
In the event of separation, the court may grant temporary use of the family home to the spouse with custody of the children, even if the other spouse is the sole owner.
Inheritance rights
The surviving spouse in a parental union will be recognized as a legal heir if he or she lived together with the deceased for at least one year and if the deceased did not leave a will. In this case, the surviving spouse will receive one-third of the estate, and the children the remaining two-thirds.
Notarial deeds to modify assets
The spouses may, by notarial act, exclude an asset from the parental union patrimony or withdraw completely from this regime. Any modification or waiver must be recorded in a notarial deed, under penalty of nullity.
Non-retroactive regime
The parental union plan does not apply to couples who are already parents before June 30, 2025. However, these couples can choose to enter into the agreement by notarial deed or in the presence of two witnesses.
Practical advice for common-law couples
- Consult a notary: For any changes to your parental union patrimony, or to withdraw from the regime, it is essential to consult a notary to ensure compliance with legal formalities.
- Find out about your inheritance rights: Make sure your will reflects your wishes, particularly with regard to the distribution of your assets among your spouse and children.
- Plan your separation: In the event of separation, it is advisable to consult a professional to understand your rights and obligations, particularly with regard to the division of assets and compensatory allowance.
- Stay informed: Family law is changing. It’s important to keep abreast of legislative changes, and to consult a professional on a regular basis to ensure that your situation complies with the law.
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Our team of CPAs and tax specialists is available to assist you and inform you of the tax implications of this new Plan.
An article by our Tax team
