You are the love of your life

I recently heard Viola Davis, an American actor, answer a question on the red carpet as to what her best relationship advice was. Her response was somewhat unique in that she said:

“You are the love of your life. The most important relationship that you will have is with yourself.”

This wise advice is certainly true when looking at your financial health as well.

With all the talk of family, love and partnerships last month, it made me think about how empowering it is for us to take care of ourselves, not just within romantic relationships, but in our financial relationships too. Life doesn’t always go as planned, so building financial stability as an individual can make all the difference.

Financial clarity and security are essential for both individuals and couples. When “life triggers” arise - moments like, moving in together, making big purchases (like a dream home), getting married, having children, facing health challenges, or experiencing loss - it presents opportunities for financial alignment and transparent conversations.

Planning ahead is not only wise, it’s an act of self-love that strengthens both you and your relationship. We’ll highlight a few of these life triggers and offer examples of how you can approach them.

Making the move: Prenups and cohabitations aren’t unromantic – they’re smart

Moving in together may seem straightforward – pack your things, choose your side of the bed, and start building a life together. But cohabitation is more than just sharing space. It’s about sharing responsibilities, expenses, legal obligations, hopes, aspirations, and any individual financial challenges (such as debt, retirement savings or health costs). When you decide to move in with someone, whether you plan to marry or not, you will eventually be considered “common law” in the government’s eyes. It’s important to understand the financial and legal landscape that comes with that.

You should have a clear and honest conversation to discuss each of your expectations and needs. Although this is not an exhaustive list, here are some topics to cover:

• How will you split expenses – equally or based on income?
• Are you going to keep separate bank accounts or create joint ones?
• Are you bringing other assets apart from your bank accounts with you? If so, how will you treat them?
• What happens if one of you becomes ill or can’t contribute as planned?
• What similarities/differences do you have with your spending, saving, and investing habits?
• Have you openly shared information about existing assets and liabilities?
• Do you have an understanding at what time frame you will be considered common law, and do you understand the legalities that come with that?
• Have you discussed what you’d do if you received a financial gift like an inheritance, or your responsibilities to your parents and family?

Many couples embrace cohabitation without fully understanding the legal implications of doing so. In Canada, common-law relationships are governed by provincial laws, which often do not offer the same protections as marriage. Property rights, inheritance, and financial obligations vary depending on provincial jurisdictions. Consulting with a lawyer ensures both partners understand their rights and plan accordingly.

Figure 1: Cohabitation time minimums to be considered common law by province

Time minimums to be considered common law	Without kids	With kids
None1		British Columbia Alberta New Brunswick Nova Scotia Prince Edward Island Northwest Territories Nunavut
1 Year	Yukon	Manitoba Ontario Yukon
2 Years	British Columbia Saskatchewan Quebec Newfoundland and Labrador Nova Scotia Northwest Territories Nunavut	Saskatchewan Quebec Newfoundland and Labrador
3 Years	Alberta Manitoba Ontario Prince Edward Island New Brunswick

¹This indicates there is no set timeframe minimum. The couple are in a marriage-like relationship of some permanence. Source: Common Law vs Marriage in Canada | Willful

Many of the same financial obligations of cohabiting will carry over into marriage. However, in a marriage, you are now dealing with a prenuptial (‘prenup”) agreement rather than a cohabitation agreement. The prenup goes one step further by covering things like inheritance rights, estate planning, child-rearing or spousal support and business assets. In some cases, depending on how the cohabitation agreement is drafted, it could carry forward into the marriage. If you have any doubt, seeking legal advice and possibly drawing up a new agreement is prudent, as it costs far less than litigation.

I always remind clients that these agreements aren’t about distrust or even expecting the other shoe to drop. They’re about making sure both individuals – and the partnership – feel secure. Laying this groundwork strengthens your partnership and will keep financial surprises at bay.

When life and health take an unexpected turn

How would you handle medical costs or a loss of income if one of you couldn’t work? Preparing with insurance, emergency funds, and legal documents, like power of attorney, helps protect both partners, financially and emotionally. It’s about making sure you’re prepared so that a health crisis doesn’t become a financial crisis.

It is important to set aside some funds for a rainy day, so if something out of the ordinary occurs, you can alleviate stress knowing that you’re able to pay for the unexpected. But if the unexpected is an illness, those funds may not be enough. Critical illness insurance could help cover costs that arise. This coverage can provide liquidity to help a household manage the added expenses resulting from illness, though it typically doesn't cover lost employment income. Disability insurance is another option that can act as a safety net, helping to replace income if you’re unable to work. If your employer offers health benefits, you may have coverage for short-term disability, long-term disability, and possibly critical illness. It's important to review your coverage to ensure it adequately supports your obligations should the need arise.

In the event that you become incapacitated, an Enduring Power of Attorney is a legal document that gives someone that you trust the authority to make financial decisions on your behalf. Along the same lines, a personal directive appoints someone to make medical or personal decisions on your behalf if you are incapable. If you become incapacitated without a personal directive or power of attorney a family member or friend may need to petition the court for legal authority to act on your behalf. Keep in mind, a power of attorney is not universal across Canada, so it’s important to understand each province’s requirements and limitations.

These are tough conversations, but important and necessary, as being prepared and informed is better than being stressed and ill-informed during tough times.

The passing of a loved one and navigating inheritances

Losing someone you love is never easy. The emotional toll can be overwhelming, and the last thing you need is added financial stress on top of it all. Having this conversation in advance of experiencing the loss allows you to view it more practically, rather than through a grief-filled lens.

Ideally, you would be clear with your partner on what happens if one of you receives an inheritance, and what each of you plans to do with giving an inheritance.

Like most other assets obtained during the marriage*, unless the inheritance is kept separate by the individual inheritor, the inheritance becomes marital property and is subject to the division of assets should the marriage dissolve.

With giving an inheritance, it’s wise to formalize this through an estate plan, which includes an up-to-date Will, clear beneficiary designations, and strategies to safeguard assets. If you want a family heirloom or asset to stay within the family, put it in writing. With blended families especially, this formal estate plan enables you to have open conversations. Alternatively, a private letter that explains and provides clarity to your wishes is another option.

*For common-law relationships, there are regional differences in how inheritances are handled. The majority is that you are not obligated to share it with your partner. You’ll want to be mindful of depositing the inheritance in a joint account or using it for shared expenses.

Financial planning as an act of love

Your financial security and future deserve as much attention as your love story. Remember, the strongest couples aren’t those who never disagree, but those who can communicate honestly with one another during the good and hard times, and advocate for what they, as an individual, need in the relationship as well.

If these conversations have been left unspoken, now is the time to begin. Start today by discussing one financial topic you’ve yet to explore with your partner. Lean on the life triggers we’ve mapped out to initiate the conversation. If you need guidance, leaning on your wealth advisor to bridge the conversation can be helpful.

Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or solicitation to buy or sell any securities. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of CWB Wealth Management Ltd. (CWB Wealth) or its affiliates. CWB Wealth does not assume any duty to update any of the information. Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. Information herein is intended to provide qualified or accredited investors, or their advisors, with general information and is not, and under no circumstances is to be construed as, a prospectus or advertisement or a public offering of the securities of pooled funds offered by CWB Wealth. Any such offer or solicitation shall only be made at the time a qualified or accredited investor, in those jurisdictions where permitted by law, receives the Confidential Offering Memorandum, or other offering documents as applicable, relating to the respective pooled fund. Nothing in this content should be considered to be legal or tax advice and you are encouraged to consult your own lawyer, accountant or other advisor before making any financial decision. Investors should consult their financial advisor before making a decision as to whether mutual funds are a suitable investment for them. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus, which contains detailed investment information, before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

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